N.Y. Gen. Mun. Law § 106-a

§ 106-a. Service charge for receiving, handling and disbursing funds\nand coupons. The fiscal officer of the political subdivision or of a\ndistrict therein shall impose upon each contractor such service charge\nfor receiving, handling and disbursing funds and coupons pursuant to\nsection one hundred six of this article as the local governing body of\nthe political subdivision may provide by local law or ordinance. Such\nservice charge shall not exceed a reasonable amount which is generally\nconsistent with charges by a bank or trust company for such a service.\nThis section shall not apply where a political subdivision or district\ntherein has entered into an agreement with a bank or trust company\npursuant to section one hundred six of this article.\n