N.Y. Gen. Mun. Law § 93-d

§ 93-d. Payroll payment by banks or trust companies. The governing\nbody of any municipal corporation, school district, district\ncorporation, town or county improvement district, public authority, or\npublic corporation may enter into a contract to provide for the deposit\nof the periodic payroll of such corporations, districts or authorities\nin a bank or trust company for disbursal by them in accordance with the\nprovisions of section ninety-six-b of the banking law.\n