New York Consolidated Laws, Banking Law - BNK § 654. Purpose of the fund

There is hereby created a fund to be known as the “state transmitter of money insurance fund”.  The purpose of the fund shall be to insure the New York instruments of uninsured transmitters of money which, by reason of insolvency, bankruptcy or other inability to pay, have defaulted in making payment on their New York instruments, whether such default has occurred prior to or after the effective date of this act.