(1) The designated bank or trust company arranges for the redeposit of the moneys into deposit accounts with one or more banking institutions, as defined in section nine-r of the banking law, for the account of the state, and serves as custodian for the state with respect to the moneys redeposited into such deposit accounts.
(2) Moneys held by a designated bank or trust company pending redeposit pursuant to paragraph one of this subdivision that are in excess of the amount insured by the federal deposit insurance corporation shall be secured in accordance with subdivision A or B of this section.
(3) The full amount of the moneys redeposited into deposit accounts pursuant to paragraph one of this subdivision, plus accrued interest, if any, shall be insured by the federal deposit insurance corporation.
(4) At the same time that the moneys are redeposited pursuant to paragraph one of this subdivision, the designated bank or trust company receives an amount of deposits from customers of other financial institutions pursuant to the deposit placement program that are at least equal to the amount of the moneys redeposited by the designated bank or trust company. This section shall not apply to any funds held by the superintendent of financial services in a fiduciary capacity.
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