N.Y. Comp. Codes R. & Regs. tit. 9 § 9003.8
All amounts deferred under a plan, together with all necessary investment instructions, shall be paid by the State or local employer as promptly as possible, but in no event later than two business days from the applicable payroll date, to an appointed trustee which shall then pay such amounts as promptly as possible, but in no event later than one business day following receipt thereof by such trustee, to one or more appointed financial organizations for investment, and upon receipt thereof by each such financial organization shall, if not otherwise invested, be transferred to an interest-bearing account to hold such amounts in cash or cash equivalent investments within one business day, where such amounts may remain until the financial organization receive all necessary investment instructions or otherwise determines it prudent to transfer such amounts to another investment fund.
N.Y. Comp. Codes R. & Regs. Tit. 9 § 9003.8