§ 78-a. New York higher education loan program variable rate default reserve fund. 1. There is hereby created and established in the sole custody of the state comptroller a special fund to be known as the New York higher education loan program variable rate default reserve fund which shall be for the exclusive benefit of the holders of variable rate education loans originated pursuant to the New York higher education loan program codified in part V of article fourteen of the education law, other than variable rate education loans described in subdivision six of section two thousand four hundred five-a of the public authorities law.

2. Amounts held in this fund shall not be, or be deemed, funds of the state or funds under the management of the state or the higher education services corporation. The obligations of the fund shall not be, or be deemed, the debts or obligations of the state and the state shall not be, or be deemed, in any way obligated to: any holder of any such education loan; any holder of bonds issued pursuant to the public authorities law for the purposes of the New York higher education loan program; any fiduciary or provider of any credit facility, liquidity facility or interest rate exchange agreement with respect to such bonds; or any other creditor of this fund.

3. Such fund shall consist of all moneys received by the higher education services corporation pursuant to paragraph (b) of subdivision seven of section six hundred ninety-two of the education law, in connection with variable rate education loans made under part V of article fourteen of the education law, other than variable rate education loans described in subdivision six of section two thousand four hundred five-a of the public authorities law. The state comptroller, at the request of the higher education services corporation, shall establish accounts within the fund and priorities of payment from such accounts and shall invest the fund in compliance with applicable state laws concerning the investment of public funds. Moneys in the fund shall be segregated from all other funds kept by the state comptroller and shall not be used for any other purpose beyond those set forth in part V of article fourteen of the education law or in this section.

4. The state comptroller shall make payments from the fund in amounts and at times required by the higher education services corporation pursuant to part V of article fourteen of the education law. Notwithstanding subdivision one of this section, upon certification by the State of New York mortgage agency that a variable rate education loan described in subdivision three of this section has been acquired by the agency or has become subject to the agreement of the agency to acquire such education loan, the state comptroller shall make transfers from the monies in the variable rate New York higher education loan program default reserve fund to the corporation for deposit into the state of New York mortgage agency New York higher education loan program default reserve fund created by subdivision six of section two thousand four hundred five-a of the public authorities law in amounts certified by the agency and the corporation as properly allocable to such education loan.