§ 426. Assurance fund. 1. Upon the original registration of real property, there shall be paid to the registrar one-tenth of one per centum of the value thereof on the basis of the last assessment for local taxation, as an assurance fund for land registered in his county. Subsequent to the original registration, there shall also be paid to the registrar, and by him transferred to the said fund, the parts or portions of the fees so designated by section four hundred four-a and section four hundred thirty-two of this article. All moneys so received by the registrar under the provisions of this section shall be paid to the treasurer of the county (in New York city to the commissioner of finance), and shall be invested by him in the same manner as are other trust funds. All such moneys as have been so transferred by the registrar to the treasurer of the county (in New York city to the city chamberlain) prior to the first day of July, nineteen hundred twenty-nine, and have been disposed of as provided by the law prior to said date, shall be returned to such treasurer of the county (in New York city to the commissioner of finance) and shall become a part of such trust fund. The proper local county or city authorities are hereby authorized and directed to make such appropriations of funds as may be necessary for this purpose. Said treasurer (or commissioner of finance) shall keep a separate account of such trust funds and report annually thereon as required by law in reference to other trust funds in his hands.

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2. All assurance funds held by the treasurer of the county or in New York city by the commissioner of finance, pursuant to this section for more than six years shall be deemed surplus. All monies in said fund, which have been deemed surplus, or so much thereof as may be necessary, shall be made available on January first, nineteen hundred ninety-seven, and shall be used to cover the costs incurred while performing the transfers required by section four hundred thirty-six of this article. Provided there are no claims filed against said fund that would affect release, such remaining surplus funds may be released by such treasurer or commissioner of finance and paid into the general fund of the county or city. If a claim is filed against such fund subsequent to such release, the general fund of such county shall repay the assurance fund such released funds with interest thereon at the prevailing rate up to the amount of released funds sufficient to cover payments made pursuant to such claim.

3. All such assurance funds created by any county or city shall be terminated on January first, two thousand six, and all remaining monies are to be transferred to the general fund of the county or city.