N.Y. Comp. Codes R. & Regs. tit. 2 § 102.4

Current through Register Vol. 46, No. 50, December 11, 2024

Section 102.4 - Originating depository financial institution

(a) The originating depository financial institution, with whom the State has entered into a direct deposit agreement, shall receive payment instructions from the State and shall make available and pay amounts specified in these payment instructions to financial institutions through the Federal Reserve Bank, and shall otherwise carry out the procedures and conduct the operations contemplated under this Part.

(b) The State by its action of issuing and sending any payment instruction contained in the media specified in section 102.3(e) of this Part shall be deemed to authorize the originating depository financial institution:

(1) to pay the amount specified in the payment instruction to the debit of the general account of the State on the payment date; and

(2) to handle and act upon such payment instruction by transmitting the same to the Federal Reserve Bank for forwarding to the recipient's financial institution.

N.Y. Comp. Codes R. & Regs. Tit. 2 § 102.4