New York Codes, Rules and Regulations
Title 2 - DEPARTMENT OF AUDIT AND CONTROL
Chapter IV - Miscellaneous Rules
Part 102 - Recurring Wages And Salary Payments Through Financial Institutions By The Automated Clearing-house Method
Section 102.3 - Definitions

(a) Originating depository financial institution means any financial organization which has entered into a direct deposit agreement with the State to provide for direct deposit of recurring wages and salary payments by transmitting electronic data to the Federal Reserve Bank.

(b) Financial institution means any bank, savings bank, savings and loan association or similar institution, or Federal- or State-chartered credit union, which has been designated by the recipient of the recurring wages and salary payment and which has affirmatively indicated to the State its preparedness to receive payment instructions as defined in subdivision (e) of this section and which has certified to the State Comptroller that it is ACH capable except for any such entity whose participation has been terminated by the State Comptroller pursuant to section 102.6(h) of this Part.

(c) State means the State of New York.

(d) Payment means a sum of money which is transferred to a recipient in satisfaction of an obligation for wages and salary.

(e) Payment instruction means an order issued by the State under this Part to pay a recurring wages and salary payment. A payment instruction may be contained on any form of communication other than voice, which is registered upon magnetic tape, disc or any other medium designed to capture and contain in durable form conventional signals used for the electronic communication of messages.

(f) Payment date means the date specified in the payment instruction for a payment which date shall be the regular pay date on which a paycheck would otherwise be issued to that employee. Such date is the date on which the funds are to be credited to the recipient's account with the financial institution specified by such recipient and on which such funds are to be made available to the financial institution by the originating depository financial institution through the Federal Reserve Bank. The date on which funds are available for withdrawal from the recipient's account, which date shall be specified on the enrollment form, shall be governed by the policy of the financial institution but shall in no event be later than two business days after the payment date. If the payment date is not a business day for the financial institution receiving a payment, or the originating depository financial institution from which it received such payment, then the next succeeding business day for both shall be deemed to be the payment date.

(g) Eligible employee or recipient means any person holding a position by election, appointment or employment in the service of an eligible agency except for an employee who is excluded from participation in the direct deposit program for cause by his employing agency. For purposes of this subdivision, an employing agency shall have cause when it reasonably determines there is a risk that the employee may receive payments covering a period of time during which the employee did not work, for which period of time the employee does not have sufficient leave credits to be applied toward the absence.

(h) Eligible agency means any State department, division, board, commission or any other governmental agency whose payrolls are prepared by the State Comptroller including the Legislature and the Judiciary, except those which the State Comptroller determines to be ineligible pursuant to this paragraph. Where the State Comptroller determines that, because of a lack of adequate internal controls, or other reasonable grounds, there exists a likelihood that participation or continued participation by an agency in this program will result in administrative problems, including but not limited to difficulties in recovering money sent in error to recipients' accounts, the State Comptroller may declare that such agency is ineligible to participate in the program. Where such a determination of ineligibility is made with respect to an agency which is then participating in the program, such determination shall result in termination of such agency from further participation in the program. Such termination shall become effective 30 days after the State Comptroller has sent such notice to the eligible agency.

(i) Recurring payment means any net payment of salary or wages, consisting of gross salary or wages less any mandatory or voluntary deductions, which is made at regular intervals to a recipient.

(j) Direct deposit of salary enrollment form means the form prescribed by the Department of Audit and Control for execution by:

(k) Account, recipient's account, designated account and appropriate account mean the account specified on the direct deposit of salary enrollment form into which any credit payments shall be made. Such account may only be an individual account or a joint account.