§ 28-02 Escrow Account.
RCNY § 28-02
(a)General. The city or the agency shall establish an interest-bearing escrow account into which syndication funds received from developers shall be deposited and held until such syndication funds are disbursed pursuant to these rules.
(b)Trust and agency account. Syndication funds received by the agency shall be deposited into: (1) The trust and agency account administered by the comptroller pursuant to the resolution adopted by the city's board of estimate on September 19, 1985 (Cal. No. 644), as renewed and/or amended on February 6, 1986 (Cal. No. 33), April 30, 1987 (Cal. No. 55), February 25, 1988 (Cal. No. 325), March 9, 1989 (Cal. No. 35), and March 8, 1990 (Cal. No. 245), or (2) Any other interest bearing escrow account established and administered pursuant to these rules and applicable laws.
(c)Interest. Any interest accruing from the syndication funds deposited into the escrow account shall become, and shall remain, the property of the city. The city shall retain or utilize such interest for any lawful purpose determined by the city to be in the best interests of the city.
(d)Principal. Encumbered funds shall be disbursed from the escrow account in accordance with the applicable EDA, these rules, and all applicable laws. Unencumbered funds shall be disbursed from the escrow account in accordance with these rules and all applicable laws.
(e)Beneficiaries. The syndication funds have been provided by developers for the benefit of the citizens of New York City, who are the sole intended beneficiaries of the syndication funds, the program, and these rules. The agency shall determine, in its sole discretion, whether to apply syndication funds for the benefit of any geographical area in New York City or for the benefit of the citizens of the city as a whole. Notwithstanding any provision of these rules or any agreement or EDA to the contrary, the agency may require, in connection with any selection pursuant to 28 RCNY § 28-03 or any designation pursuant to 28 RCNY § 28-04, that any applicant or community group sign an agreement or other statement acknowledging that the syndication funds are for the benefit of the citizens of New York city and not for the benefit of any other individual or group (or any subset of such group).
