Chapter 9 - TAX UPON FOREIGN AND ALIEN INSURERS

Section 11-901

Section 11-901

  §  11-901  Definitions.  Wherever  used in this chapter, the following
words and phrases shall mean and include:
  "Alien insurer." Any insurer incorporated or organized under the  laws
of  any  foreign  nation,  or  of any province or territory not included
under the definition of a foreign insurer.
  "Foreign insurer." Any insurer,  except  a  mutual  insurance  company
taxed  under the provisions of section nine thousand one hundred five of
the insurance law, incorporated or  organized  under  the  laws  of  any
state, as herein defined, other than this state.
  "Fire insurance corporation, association or individuals." Any insurer,
regardless of the name, designation or authority under which it purports
to  act,  which  insures  property of any kind or nature against loss or
damage by fire.
  "Loss or damage by fire." Loss or damage by fire, lightning, smoke  or
anything  used  to  combat fire, regardless of whether such risks or the
premiums therefor are stated or charged separately and  apart  from  any
other risk or premium.
  "State." Any state of the United States and the District of Columbia.
  "Commissioner  of finance." The commissioner of finance of the city or
any other officer of the city designated to perform the same functions.
  "Department of finance." The department of finance of the city or  any
other agency or department designated to perform the same functions.
  "Fire commissioner." The fire commissioner of the city.
  "Comptroller." The comptroller of the city.
  "Tax  appeals  tribunal."  The  tax  appeals  tribunal  established by
section one hundred sixty-eight of the charter.

Section 11-902

Section 11-902

  § 11-902 General powers of the commissioner of finance. In addition to
all  other  powers  granted  to  the  commissioner of finance under this
chapter, the commissioner is hereby authorized and empowered:
  1. To make, adopt and amend rules and regulations appropriate  to  the
carrying out of this chapter and the purposes thereof.
  2.  To  compromise  disputed  claims  in  connection with taxes hereby
imposed.
  3. To delegate his or  her  functions  hereunder  to  any  officer  or
employee of the department of finance.
  4.   To  prescribe  reasonable  methods,  approved  by  the  New  York
superintendent of insurance, for determining  the  amounts  of  premiums
subject to the tax.
  5.  To require any foreign or alien insurer subject to the tax to keep
detailed records of the premiums in a manner reasonably designed to show
the amounts thereof subject to the tax and to furnish  such  information
on request.
  6.  To assess, determine, revise and adjust the tax imposed under this
chapter.
  7. To audit the reports of any insurer.
  8. To allow an extension of time not in  excess  of  thirty  days  for
filing  the report and paying the tax required by this chapter, provided
the taxpayer requests such  extension  in  writing  prior  to  the  date
prescribed  for  such  filing  and  such  payment by sections 11-904 and
11-903 of this chapter.

Section 11-903

Section 11-903

  §  11-903  Tax  on premiums on policies of foreign and alien insurers.
There shall be paid to the department of finance for the use and benefit
of the fire department of the city, on or before the first day of March,
in each year by every foreign  and  alien  fire  insurance  corporation,
association  or individuals which insure property against loss or damage
by fire, the sum of two percent of all gross direct premiums less return
premiums which, during the year ending on the preceding thirty-first day
of December, shall have been  received  by  any  such  insurer  for  any
insurance  against  loss or damage by fire in the city. Any such insurer
which in any year shall cease or terminate doing business  in  the  city
shall  pay the tax for such year within thirty days after such cessation
or termination.

Section 11-904

Section 11-904

  §  11-904 Report of premiums by insurers. Each insurer required to pay
a tax under this chapter shall, at the time such tax is paid or payable,
whichever is sooner, render to the commissioner of  finance  a  verified
report  setting  forth  such  information  as  may  be  required  by the
commissioner  for  the  determination  of  the  tax   and   the   proper
administration  of  this  chapter.  The  commissioner  of  finance shall
prescribe the form and  furnish  the  necessary  forms  to  enable  such
insurers  to  make  such reports. The commissioner or the commissioner's
designated representative or the tax appeals tribunal or its  designated
representative  shall  have power to examine any such insurer under oath
and to require the production by such insurer of all books and papers as
the commissioner or the tax appeals tribunal  may  deem  necessary.  All
expenses  of  collecting  such  tax shall be paid by the commissioner of
finance from  the  funds  received  under  this  chapter  prior  to  the
distribution thereof as hereinafter authorized.

Section 11-905

Section 11-905

  § 11-905 Interest and penalties. (a) Interest on underpayments. If any
amount  of  tax  is  not  paid on or before the last date prescribed for
payment (without regard to any extension of time granted  for  payment),
interest on such amount at the underpayment rate set by the commissioner
of  finance  pursuant to subdivision (g) of this section, or, if no rate
is set, at the rate of seven and one-half percent per  annum,  shall  be
paid  for  the  period  from  such  last date to the date of payment. In
computing the amount of interest to be  paid,  such  interest  shall  be
compounded  daily.  Interest under this subdivision shall not be paid if
the amount thereof is less than one dollar.
  (b) * (1) Failure to file return. (A) In case of  failure  to  file  a
return  under  this chapter on or before the prescribed date (determined
with regard to any extension of time for filing),  unless  it  is  shown
that  such  failure  is  due  to reasonable cause and not due to willful
neglect, there shall be added to the amount required to be shown as  tax
on  such return five percent of the amount of such tax if the failure is
for not more than one month, with an additional five  percent  for  each
additional   month   or  fraction  thereof  during  which  such  failure
continues, not exceeding twenty-five percent in the aggregate.
  (B) In the case of a failure to file a return of tax within sixty days
of the date prescribed for filing of such return (determined with regard
to any extension of time for filing),  unless  it  is  shown  that  such
failure  is  due to reasonable cause and not due to willful neglect, the
addition to tax under subparagraph (A) of this paragraph  shall  not  be
less  than  the  lesser of one hundred dollars or one hundred percent of
the amount required to be shown as tax on such return.
  (C) For purposes of this paragraph, the amount of tax required  to  be
shown  on  the  return shall be reduced by the amount of any part of the
tax which is paid on or before the date prescribed for  payment  of  the
tax and by the amount of any credit against the tax which may be claimed
upon the return.
  * NB Amended Ch. 765/85 § 43, language juxtaposed per Ch. 907/85 § 14
  (2)  Failure to pay tax shown on return. In case of failure to pay the
amount shown as tax on a return required to be filed under this  chapter
on  or  before  the  prescribed  date  (determined  with  regard  to any
extension of time for payment), unless it is shown that such failure  is
due  to  reasonable cause and not due to willful neglect, there shall be
added to the amount shown as tax on such return one-half of one  percent
of the amount of such tax if the failure is not for more than one month,
with  an additional one-half of one percent for each additional month or
fraction thereof during which  such  failure  continues,  not  exceeding
twenty-five  percent  in the aggregate. For the purpose of computing the
addition for any month the amount of tax shown on the  return  shall  be
reduced  by the amount of any part of the tax which is paid on or before
the beginning of such month and by the amount of any credit against  the
tax  which may be claimed upon the return. If the amount of tax required
to be shown on a return is less than the amount shown  as  tax  on  such
return,  this  paragraph  shall  be  applied  by substituting such lower
amount.
  (3) Failure to pay tax required to be shown  on  return.  In  case  of
failure  to pay any amount in respect of any tax required to be shown on
a return required to be filed under this chapter which is not  so  shown
(including  a  determination  made  pursuant  to  section 11-906 of this
chapter) within ten days of the date of a notice  and  demand  therefor,
unless  it is shown that such failure is due to reasonable cause and not
due to willful neglect, there shall be added to the amount of tax stated
in such notice and demand one-half of one percent of  such  tax  if  the
failure  is  not for more than one month, with an additional one-half of

one percent for each additional month or fraction thereof  during  which
such  failure  continues,  not  exceeding  twenty-five  percent  in  the
aggregate. For the purpose of computing the addition for any month,  the
amount  of  tax  stated in the notice and demand shall be reduced by the
amount of any part of the tax which is paid before the beginning of such
month.
  * (4) Limitations on additions.
  (A) With respect to any return,  the  amount  of  the  addition  under
paragraph  one of this subdivision shall be reduced by the amount of the
addition under paragraph two of this subdivision for any month to  which
an   addition  applies  under  both  paragraphs  one  and  two  of  this
subdivision. In any case described in subparagraph (B) of paragraph  one
of this subdivision, the amount of the addition under such paragraph one
shall not be reduced below the amount provided in such subparagraph.
  (B)  With  respect  to  any return, the maximum amount of the addition
permitted under paragraph three of this subdivision shall be reduced  by
the  amount  of  the  addition  under  paragraph one of this subdivision
(determined without regard to subparagraph (B) of  such  paragraph  one)
which is attributable to the tax for which the notice and demand is made
and which is not paid within ten days of such notice and demand.
  * NB Amended Ch. 765/85 § 43, language juxtaposed per Ch. 907/85 § 14
  * (c)   Underpayment  due  to  negligence.  (1)  If  any  part  of  an
underpayment of tax is due to negligence  or  intentional  disregard  of
this  chapter or any rules and regulations hereunder (but without intent
to defraud), there shall be added to the tax a  penalty  equal  to  five
percent of the underpayment.
  (2)  There  shall  be  added  to  the  tax  (in addition to the amount
determined under paragraph one of this subdivision) an amount  equal  to
fifty  percent  of  the  interest  payable under subdivision (a) of this
section with respect to the portion of  the  underpayment  described  in
such   paragraph   one  which  is  attributable  to  the  negligence  or
intentional disregard referred to in such paragraph one, for the  period
beginning  on  the  last  date  prescribed  by  law  for payment of such
underpayment (determined without regard to any extension) and ending  on
the  date  of the assessment of the tax (or, if earlier, the date of the
payment of the tax).
  * NB Amended Ch. 765/85 § 43, language juxtaposed per Ch. 907/85 § 14
  * (d) Underpayment due to fraud. (1) If any part of an underpayment of
tax is due to fraud, there shall be added to the tax a penalty equal  to
fifty percent of the underpayment.
  (2)  There  shall  be  added  to  the  tax (in addition to the penalty
determined under paragraph one of this subdivision) an amount  equal  to
fifty  percent  of  the  interest  payable under subdivision (a) of this
section with respect to the portion of  the  underpayment  described  in
such  paragraph  one  which  is  attributable  to  fraud, for the period
beginning on the  last  day  prescribed  by  law  for  payment  of  such
underpayment  (determined without regard to any extension) and ending on
the date of the assessment of the tax (or, if earlier, the date  of  the
payment of the tax).
  (3)  The  penalty under this subdivision shall be in lieu of any other
addition to tax imposed by subdivision (b) or (c) of this section.
  * NB Amended Ch. 765/85 § 43, language juxtaposed per Ch. 907/85 § 14
  (e) Additional penalty. Any insurer who, with fraudulent intent, shall
fail to pay any tax imposed by this chapter, or to make, render, sign or
certify any return,  or  to  supply  any  information  within  the  time
required  by or under this chapter, shall be liable for a penalty of not
more than one  thousand  dollars,  in  addition  to  any  other  amounts
required under this chapter to be imposed, assessed and collected by the

commissioner  of  finance.  The  commissioner  of finance shall have the
power, in his or her discretion, to  waive,  reduce  or  compromise  any
penalty under this subdivision.
  (f)  The  interest and penalties imposed by this section shall be paid
and disposed of in the same manner as other revenues from this  chapter.
Unpaid  interest and penalties may be enforced in the same manner as the
tax imposed by this chapter.
  (g) (1) Authority to set interest rates. The commissioner  of  finance
shall  set the overpayment and underpayment rates of interest to be paid
pursuant to subdivision (a) of  this  section  and  subdivision  (a)  of
section  11-906  of  this  chapter,  but  if no such overpayment rate of
interest are set, such rate or rates shall be deemed to be  set  at  six
percent  per  annum and such underpayment rate shall be deemed to be set
at seven and one-half  percent  per  annum.  Such  rates  shall  be  the
overpayment  and  underpayment rates prescribed in paragraph two of this
subdivision but the underpayment rate shall not be less than  seven  and
one-half  percent  per  annum. Any such rates set by the commissioner of
finance shall apply to taxes, or any portion thereof,  which  remain  or
become  due  or overpaid on or after the date on which such rates become
effective and shall apply only with  respect  to  interest  computed  or
computable for periods or portions of periods occurring in the period in
which such rates are in effect.
  (2) General rule. (A) Overpayment rate. The overpayment rate set under
this  subdivision shall be the sum of (i) the federal short-term rate as
provided under paragraph  three  of  this  subdivision,  plus  (ii)  two
percentage points.
  (B)   Underpayment   rate.   The  underpayment  rate  set  under  this
subdivision shall be the sum of  (i)  the  federal  short-term  rate  as
provided  under  paragraph  three  of  this subdivision, plus (ii) seven
percentage points.
  (3) Federal short-term rate. For purposes of this subdivision:
  (A) The federal short-term rate for any month  shall  be  the  federal
short-term  rate  determined  by  the  United  States  secretary  of the
treasury during such month in accordance with subsection (d) of  section
twelve  hundred  seventy-four  of  the  internal revenue code for use in
connection with section six  thousand  six  hundred  twenty-one  of  the
internal  revenue  code.  Any  such rate shall be rounded to the nearest
full percent (or, if a multiple of one-half of one  percent,  such  rate
shall be increased to the next highest full percent).
  (B) Period during which rate applies.
  (i)   In   general.   Except  as  provided  in  clause  (ii)  of  this
subparagraph, the federal short-term rate for the first  month  in  each
calendar quarter shall apply during the first calendar quarter beginning
after such month.
  (ii)  Special  rule  for  the  month  of  September,  nineteen hundred
eighty-nine. The  federal  short-term  rate  for  the  month  of  April,
nineteen  hundred  eighty-nine  shall  apply with respect to setting the
rate  of  interest  for  the  month  of  September,   nineteen   hundred
eighty-nine.
  (4)  Publication  of  interest rate. The commissioner of finance shall
cause to be published in the city record,  and  give  other  appropriate
general notice of, the interest rate to be set under this subdivision no
later  than  twenty days preceding the first day of the calendar quarter
during which such interest rate applies. The setting and publication  of
such  interest  rate  shall  not  be  included  within  paragraph (a) of
subdivision five of section one thousand forty-one of the  city  charter
relating to the definition of a rule.

Section 11-906

Section 11-906

  §  11-906 Assessment, refund, collection, review and reserves. (a) The
provisions of the civil practice law and rules or any other law relative
to limitations of time for the enforcement of a civil remedy  shall  not
apply  to  any  proceeding  or  action by the commissioner of finance to
levy, assess, determine or enforce the collection of  tax,  interest  or
penalty  imposed  by  this  chapter.  However,  except  in the case of a
wilfully false or fraudulent report, no assessment  of  additional  tax,
interest  or  penalty  shall  be  made after the expiration of more than
three years from the date of the filing of a report, provided,  however,
that  where  no  report has been filed as provided by law the tax may be
assessed at any time.  The  commissioner  of  finance  shall  refund  or
credit, with interest at the overpayment rate set by the commissioner of
finance  pursuant  to  subdivision (g) of section 11-905 of this chapter
or, if no rate is set, at the rate of six  percent  per  annum  computed
from  the  date  of  overpayment  to  a  date  (to  be determined by the
commissioner of finance) preceding the date of a  refund  check  by  not
more  than  thirty  days,  any  tax,  penalty  or  interest erroneously,
illegally or unconstitutionally collected or paid if application to  the
commissioner  of finance for such refund shall be made within six months
from  the  payment  thereof.  Notice  of  any   determination   of   the
commissioner  of  finance with respect to an assessment of tax, interest
or penalty or with respect to a claim for refund or  any  other  notice,
demand  or  request shall be given by mailing the same to the insurer to
the address of its New York city office last filed with the commissioner
of finance or, if there is no such office, to the address  of  its  main
office last filed with the commissioner of finance or, in the absence of
any  filed address, to such address as may be obtainable. The mailing of
any notice, demand or request by the commissioner of  finance  shall  be
presumptive  evidence  of  its  receipt by the insurer and any period of
time to be determined with reference  to  the  giving  of  such  notice,
demand  or  request shall commence to run from the date of such mailing.
The determination of the  commissioner  of  finance  shall  finally  and
irrevocably  fix the amount of any tax, interest or penalty due or to be
refunded unless the taxpayer, within ninety days  after  the  giving  of
notice  of  such  determination,  or  if the commissioner of finance has
established a conciliation procedure pursuant to section 11-124  of  the
code  and  the  taxpayer  has  requested  a  conciliation  conference in
accordance  therewith,  within  ninety  days  from  the  mailing  of   a
conciliation  decision or the date of the commissioner's confirmation of
the discontinuance of the conciliation proceeding,  both  (1)  serves  a
petition  upon the commissioner of finance and (2) files a petition with
the tax appeals tribunal for a hearing, or unless  the  commissioner  of
finance  of  his  or  her  own  motion  shall redetermine the same. Such
hearing and any appeal to the tax appeals tribunal sitting en banc  from
the  decision  rendered in such hearing shall be conducted in the manner
and subject to the requirements prescribed by the tax  appeals  tribunal
pursuant  to  sections  one  hundred  sixty-eight  through  one  hundred
seventy-two of the charter. After such hearing the tax appeals  tribunal
shall   give  notice  of  its  decision  to  the  taxpayer  and  to  the
commissioner of finance  with  reference  to  the  amount  of  the  tax,
interest  or penalty assessed or to be refunded. The decision of the tax
appeals  tribunal  sitting  en  banc  shall  be  reviewable  for  error,
illegality  or  unconstitutionality or any other reason, by a proceeding
under article seventy-eight of the civil practice law and rules if  such
proceeding  is commenced by the person against whom the tax was assessed
within four months after the giving of the notice of  such  tax  appeals
tribunal  decision.  Such  proceeding  shall  not  be  commenced  by the
taxpayer unless: (1) the amount of any tax assessed  and  sought  to  be

reviewed  with  penalties  and  interest thereon, if any, shall be first
deposited with the commissioner of finance and there shall be filed with
the commissioner of finance an undertaking in such amount and with  such
sureties  as a justice of the supreme court shall approve, to the effect
that if such proceeding be dismissed  or  the  decision  confirmed,  the
taxpayer  will  pay  all  costs and charges which may accrue against the
taxpayer in the prosecution of the proceeding, or (2) in the case  of  a
review of a decision assessing any taxes, penalties and interest, at the
option  of  the taxpayer, such undertaking may be in a sum sufficient to
cover all of the taxes, penalties and interest assessed by such decision
plus the costs and charges which may accrue against the taxpayer in  the
prosecution  of the proceeding, in which event the taxpayer shall not be
required to deposit such taxes, penalties and interest  as  a  condition
precedent  to  the  commencement  of the proceeding. No determination or
proposed determination of tax, interest or penalty due or to be refunded
shall be reviewed or enjoined in any manner except as set forth herein.
  (b) In cases where the taxpayer has  applied  for  a  refund  and  has
commenced a proceeding under article seventy-eight of the civil practice
law  and  rules to review a decision of the tax appeals tribunal adverse
to such taxpayer on its application for a refund,  the  commissioner  of
finance  shall  set up appropriate reserves to meet any decision adverse
to the city.
  (c) In computing the amount of interest to be paid under this section,
such interest shall be compounded daily.

Section 11-907

Section 11-907

  § 11-907 Place of business to be reported. Every insurer, on or before
the  first  day of March in each year, and as often in each year as such
insurer shall change its  principal  place  of  business  or  change  or
terminate  any  office or place of business in the city, shall report in
writing, to the commissioner of finance, the location of  its  principal
place  of business and any new principal place of business or of any new
office or place of business in the city or of  the  termination  of  any
such  office  or  place  of  business.  In  the  event of such change or
termination, such report shall be made no later than fifteen days  after
such  change  or  termination. Any insurer who fails or neglects to make
such report within the time limited  therefor  shall  be  subject  to  a
penalty  of  one hundred dollars and, in addition thereto, fifty dollars
for each month or part thereof during which such report is not made. The
total of such penalties shall not exceed one thousand dollars.

Section 11-908

Section 11-908

  §  11-908  Suits  for  violations. The tax provided to be paid by this
chapter, and the pecuniary penalties and interest  imposed  therein,  or
any  or  either  of  them,  may be sued for and recovered, with costs of
suit, in any court of record, by the commissioner of finance.

Section 11-909

Section 11-909

  § 11-909 Distribution of tax on policies covering property in the city
of New York. (a) The moneys received by the commissioner of finance as a
tax  on  policies covering property in each borough of the city shall be
disbursed by the commissioner of finance as follows:
  1. Ten percent to the firemen's association of the state of New  York,
for  the  endowment,  benefit and maintenance of the volunteer firemen's
home at Hudson, but in  no  event  to  exceed  the  sum  of  thirty-five
thousand dollars ($35,000) annually.
  2. The balance to the general fund of the city established pursuant to
section one hundred nine of the charter, except as provided in paragraph
three of this subdivision.
  3.  a.  Volunteer firemen's benevolent fund; trustee. From the balance
specified in paragraph two of this subdivision, a sum, not to exceed one
hundred fifty thousand dollars in any one year, shall  be  paid  into  a
fund to be known as the volunteer firemen's benevolent fund, which shall
be  administered  as  hereinafter  provided by the fire commissioner, as
trustee  of  such  fund,  for  the   benefit   of   indigent   volunteer
firefighters, their surviving spouses and orphans.
  b.  Persons  entitled to benefits from fund. All funds received by the
fire commissioner as trustee under this paragraph shall be  expended  by
the fire commissioner for the relief of:
  (i)  all  indigent  volunteer  firefighters  who  served as such for a
period of five years in a duly organized volunteer fire company  in  the
former towns of New Lots, Flatlands, Gravesend, New Utrecht and Flatbush
in  the county of Kings, or in the territory now included in the borough
of Richmond, or in the territory now included in the borough of  Queens,
or  in  the  territory now included in the borough of the Bronx, and who
were honorably discharged after such  five  years  of  service,  or  who
having  been  members  of a duly organized volunteer fire company within
any such town or territory, which company was disbanded by reason of the
installation of a paid fire department, and were members of such company
for at least one year prior to its disbandment;
  (ii)  the  surviving  spouses  and  orphans  of  any  such   volunteer
firefighters.
  c.   Fund   benefits   of   beneficiaries  on  rolls  as  of  December
thirty-first, nineteen hundred fifty-one. During the lifetime  of  those
relief  beneficiaries  who  appear  as such as of December thirty-first,
nineteen hundred fifty-one upon the  records  of  the  trustees  of  the
exempt  firemen's  benevolent  fund  of  the  county of Kings, or of the
trustees of the exempt firemen's  benevolent  fund  of  the  borough  of
Queens,  or  of  the trustees of the exempt firemen's benevolent fund of
the borough of Staten Island, or of the trustees of the exempt firemen's
benevolent fund of the borough of the Bronx, it shall be the duty of the
fire commissioner, as such trustee, to pay to  such  beneficiaries  from
the  volunteer  firemen's  benevolent fund referred to in subparagraph a
hereof, the same  amounts  as  were  being  periodically  paid  to  such
beneficiaries as of June thirtieth, nineteen hundred fifty-two.
  d.  Fund benefits of residents of firemen's home. It shall be the duty
of the fire commissioner,  as  such  trustee,  to  pay  from  such  fund
referred  to  in  subparagraph a, the sum of ten dollars monthly to each
volunteer firefighter in residence at the volunteer  firemen's  home  at
Hudson,  who  qualified for entrance into such home by reason of service
as a volunteer firefighter within  the  area  now  included  within  the
boundaries of the city of New York. No other payments shall be made from
such  fund  to any such volunteer firefighter while in residence at such
home.
  e. Eligibility of persons who applied for fund benefits after December
thirty-first, nineteen hundred fifty-one, and prior to the establishment

of fund. Upon the establishment of the  volunteer  firemen's  benevolent
fund  referred to in subparagraph a hereof, the fire commissioner or the
fire  commissioner's  authorized  subordinates  shall  investigate   and
determine  the  need  for  benefits  of  all persons who, after December
thirty-first, nineteen hundred fifty-one and prior to the  establishment
of  such  volunteer  firemen's  benevolent  fund,  applied  for benefits
payable from any of the benevolent funds  mentioned  in  subparagraph  c
hereof,  and  who  are  receiving  benefits therefrom at the time of the
establishment of such fund referred to in subparagraph a. No such person
shall be found to be in need of benefits, nor shall any such  person  be
paid  any  benefits  from  such  last-mentioned  fund  unless  the  fire
commissioner or the fire commissioner's  authorized  subordinates  shall
determine  that  such  person  is  indigent.  In the event that any such
person is thus found to be in need of benefits,  the  fire  commissioner
shall  pay  to  such  person  from  such  last-mentioned  fund, the same
periodic amounts as the trustees mentioned in subparagraph c hereof were
paying as of June thirtieth, nineteen hundred fifty-two, to a person who
had the same status and who was receiving benefits from the  borough  or
county  fund which would be currently liable for the payment of benefits
to such person, but for the provision of section 13-532 of the code.  It
shall  be  the duty of the fire commissioner and the fire commissioner's
authorized subordinates to maintain and  carry  out  continuously,  such
investigation  procedures  as  may  be necessary to assure that benefits
will not be paid from such fund to any persons who are not  in  need  as
herein specified.
  f.  Eligibility  for  benefits  of  persons  applying  therefor  after
establishment of fund. All persons applying after the  establishment  of
the  volunteer  firemen's benevolent fund for benefits payable therefrom
shall be investigated as to need by the fire commissioner  or  the  fire
commissioner's  authorized  subordinates,  and  the  eligibility of such
persons for benefits and the amount thereof to be awarded  and  paid  to
them   shall  be  determined  by  the  fire  commissioner  or  the  fire
commissioner's authorized subordinates in accordance with the  standards
specified  in  subparagraph  e  hereof. Benefits shall be paid from such
fund to eligible persons in accordance with such  determination  and  it
shall  be  the duty of the fire commissioner and the fire commissioner's
subordinates continuously to maintain and carry out as to  such  persons
investigation procedures such as are described in subparagraph e hereof.
The  fire commissioner, as part of his or her investigation to determine
eligibility of persons for fund benefits, shall request  from  the  duly
appointed representative of the volunteer firefighters in each borough a
report  on  such  person's  service  and indigency. Such report shall be
solely for the information of the fire commissioner  and  shall  not  be
binding  upon the fire commissioner in arriving at a determination as to
eligibility. In the event that such report is not submitted  within  ten
days  from  the  date  of request, the fire commissioner shall determine
eligibility  on  the  basis  of  the  facts  developed   in   the   fire
commissioner's own investigation.
  g.  Excess  moneys.  In  the  event that the benefits paid by the fire
commissioner, as trustee, during any period of one year beginning on the
first day of February shall not equal  the  sum  of  one  hundred  fifty
thousand  dollars, the unexpended balance shall be paid into the general
fund of the city established pursuant to section one hundred nine of the
charter, except that the fire commissioner may retain in  the  volunteer
firemen's  benevolent  fund  such amount as may be necessary to meet the
commitments of such fund until the revenue from the tax collected  under
this chapter in the ensuing taxable year shall become available.

  h.   Depositories.  The  fire  commissioner,  as  trustee,  is  hereby
empowered and directed to receive all moneys  and  assets  belonging  or
payable  to  such  volunteer firemen's benevolent fund and shall deposit
all such moneys to the credit of such fund in banks and trust  companies
to be selected by the fire commissioner.
  i.  Bond. The fire commissioner, as trustee of such fund, shall give a
bond with one or more sureties, in a sum  sufficient  for  the  faithful
performance  of his or her duties, such bond to be approved as to amount
and adequacy, by the comptroller and filed in the comptroller's office.
  j. Records. The officers and employees of the fire department who  are
responsible for the maintenance of the books and records of the New York
fire department pension fund shall have charge of, and keep the accounts
of   the  fire  commissioner  as  trustee  of  the  volunteer  firemen's
benevolent fund.
  k. Reports. The  fire  commissioner,  as  trustee  of  such  volunteer
firemen's  benevolent  fund,  shall submit to the mayor on or before the
first day of April of each year, a verified report in which shall be set
forth the account of the fire commissioner's proceedings as such trustee
during the twelve-month period ending on the thirty-first day of January
immediately preceding. Such report shall  include  a  statement  of  all
receipts and disbursements on account of such benevolent fund, a list of
the  names,  residences  and  as  nearly  as  possible,  the ages of the
beneficiaries of such fund and  the  respective  amounts  paid  to  them
during such period.
  1.  Audit. The comptroller shall have the power to audit the books and
records of the fire commissioner as trustee of the  volunteer  firemen's
benevolent fund.
  (b)  The  moneys received by the fire commissioner as trustee pursuant
to the provisions of paragraph three of subdivision (a) of this  section
shall  be  expended  by  the  fire commissioner only as provided in such
paragraph.