Investment of funds by public authorities and public benefit corporations in deposits insured by the federal deposit insurance corporation

§ 2927. Investment of funds by public authorities and public benefit corporations in deposits insured by the federal deposit insurance corporation.

Notwithstanding any inconsistent provision of this chapter or any other general, special or local law, every corporation whether or not such corporation is otherwise governed by this chapter, may temporarily invest moneys not required for immediate expenditure in accordance with the following conditions:

1. the moneys are invested through a bank or trust company located and authorized to do business in this state selected by the corporation;

2. the selected bank or trust company arranges for the redeposit of the moneys in certificates of deposit and other deposit accounts in one or more banking institutions, as defined in section nine-r of the banking law, for the account of the corporation;

3. the full amount of principal and accrued interest of each such deposit is insured by the federal deposit insurance corporation;

4. the selected bank or trust company in this state acts as custodian for the corporation with respect to the funds redeposited pursuant to this section; and

5. at the same time that the corporation's moneys are redeposited pursuant to this section, the selected bank or trust company in this state receives an amount of deposits from customers of other financial institutions equal to or greater than the amount of the moneys invested by the corporation through the selected bank or trust company in this state.