N.Y. State Fin. Law § 78

§ 78. New York state college choice tuition savings program trust\nfund. 1. There is hereby established in the sole custody of the state\ncomptroller a special fund to be known as the New York state college\nchoice tuition savings program trust fund. All payments from such fund\nshall be made in accordance with article fourteen-A of the education law\nand the memorandum of understanding entered into pursuant thereto on the\naudit of the state comptroller.\n 2. The fund shall be a trust fund and shall consist of a trust account\nand an operating account. The trust account shall include amounts\nreceived by the New York state college choice tuition savings program\npursuant to tuition savings agreements, administrative charges, fees,\nand all other amounts received by the program from other sources, and\ninterest and investment income earned by the trust fund. The comptroller\nshall, from time to time, make transfers from the trust account to the\noperating account for the immediate payment of obligations under tuition\nsavings agreements, operating expenses and administrative costs of the\nNew York state college choice tuition savings program. Administrative\ncosts shall be paid out of the operating account according to the terms\nand conditions established pursuant to the provisions of section six\nhundred ninety-five-c of the education law.\n 3. (a) The comptroller, as trustee, shall invest the assets of the\ntrust fund in investments authorized by article four-A of the retirement\nand social security law, provided however, that:\n (i) the provisions of paragraph (a) of subdivision two of section one\nhundred seventy-seven of the retirement and social security law shall\nnot apply except for the first clause of subparagraph (ii) of such\nparagraph; and\n (ii) notwithstanding the provisions of subdivision seven of section\none hundred seventy-seven of the retirement and social security law or\nany other law to the contrary, the assets of the trust fund may be\ninvested in any funding agreement issued in accordance with section\nthree thousand two hundred twenty-two of the insurance law by a domestic\nlife insurance company or a foreign life insurance company doing\nbusiness in this state, subject to the following:\n (1) such a funding agreement may provide for a guaranteed minimum rate\nof return;\n (2) such a funding agreement may be allocated as either a separate\naccount or a general account of the issuer, as the comptroller may\ndecide;\n (3) total investments of the trust fund pursuant to this paragraph in\nany funding agreements issued by a single life insurance company which\nare allocated as a general account of the issuer shall not, in the\naggregate, exceed three hundred fifty million dollars; and\n (4) no assets of the trust fund shall be invested in any such funding\nagreement unless, at the time of such investment, the general\nobligations or financial strength of the issuer have received either the\nhighest or second highest rating by two nationally recognized rating\nservices or by one nationally recognized rating service in the event\nthat only one such service rates such obligations.\n (b) Trust fund assets shall be kept separate and shall not be\ncommingled with other assets, except as provided herein. The comptroller\nmay enter into contracts to provide for investment advice and\nmanagement, custodial services, and other professional services for the\nadministration and investment of the program. Administrative fees, costs\nand expenses, including investment fees and expenses, shall be paid from\nthe assets of the fund.\n 4. The comptroller shall provide for the administration of the trust\nfund, including maintaining participant records and accounts, and\nproviding annual audited reports. The comptroller may enter into\ncontracts to provide administrative services and reporting.\n