§ 97-p. Community college tuition and instructional income fund. 1. There is hereby established in the custody of the commissioner of taxation and finance a special account to be known as the "community college tuition and instructional income fund."

2. All moneys (i) received by any local sponsor of a community college or any community college from tuition and instructional fees received from students attending any such community college, (ii) appropriated or made available by any local sponsor of a community college pursuant to the provisions of subdivision five of section sixty-three hundred four of the education law, and (iii) appropriated or made available from any state aid or other financial assistance provided to a local sponsor or community college by the state of New York, to the extent such moneys are either (a) assigned by the local sponsor of such community college to the dormitory authority, or (b) payable to the dormitory authority pursuant to an agreement entered into by the dormitory authority and the state university of New York pursuant to subdivision twenty-one of section sixteen hundred seventy-eight of the public authorities law and paragraph x of subdivision two of section three hundred fifty-five of the education law shall be paid over to the commissioner of taxation and finance and such funds shall be deposited by the commissioner of taxation and finance to the credit of the community college tuition and instructional income fund.

3. Moneys in the community college tuition and instructional income fund shall be kept separate and shall not be commingled with any other moneys in the hands of the commissioner of taxation and finance. All deposits of such moneys shall, if required by the commissioner of taxation and finance, be secured by obligations of the United States or of the state of market value equal at all times to the amount of the deposit and all banks and trust companies are authorized to give such securities for such deposits.

4. Subject to the terms of any agreement between any local sponsor and the dormitory authority, or between the state university of New York and the dormitory authority, any such moneys in the community college tuition and instructional income fund may, in the discretion of the commissioner of taxation and finance, be invested by the commissioner of taxation and finance in obligations of the United States or the state or obligations the principal and interest of which are guaranteed by the United States or the state, or in certificates of deposit fully secured by similar obligations, or in accordance with the provisions of section ninety-eight-b of this article.

5. The commissioner of taxation and finance shall at all times maintain on deposit in the community college tuition and instructional income fund the aggregate amount of money needed by each local sponsor to comply in full with each obligation of each local sponsor under the terms of each lease, sublease or agreement of each local sponsor with the dormitory authority or with the terms of any agreement between the state university of New York and the dormitory authority, which is then in effect until the next succeeding June thirtieth.

The commissioner of taxation and finance shall make payments from the moneys on deposit in the community college tuition and instructional income fund to the authority in amounts and at the times required by each obligation of each local sponsor under the terms of each lease, sublease or agreement of each local sponsor with the dormitory authority or at the times required by any agreement between the state university of New York and the dormitory authority which is then in effect.

6. The commissioner of taxation and finance shall from time to time but in no event later than the last day of each month of each year pay over to each community college the moneys in excess of the amount of money required to be maintained in the community college tuition and instructional income fund pursuant to subdivision five of such section, except those moneys resulting from the investment of funds paid by the state of New York pursuant to the provisions of subdivision eight of section sixty-three hundred four of the education law which moneys shall be a credit to the state against future payments pursuant to such statute. Prior to making any such transfer, the commissioner of taxation and finance shall make and deliver to the director of the budget, the chancellor of the state university and the dormitory authority his certificate stating the amount to be maintained on deposit in the community college tuition and instructional income fund for each community college to comply in full with the provisions of subdivision five of this section.

7. The provisions of this section shall not apply to the local sponsor of any community college in the city of New York or to any community college in the city of New York.