NY Gen Mun L § 39 (2021)
2021 New York Laws GMU - General Municipal Article 3 - Report of Financial Condition 39 - Investment Policies for Local Governments.

§  39.  Investment  policies  for  local  governments.  1.  Each local government, which for purposes of this section shall  include  counties, cities,   towns,   villages,   school   districts  including  boards  of cooperative educational services and district corporations,  within  the meaning  of  that  term  as  set  out  in  subdivision  three of section sixty-six of the general construction law,  or  any  other  governmental subdivision  of  the  state,  shall  by resolution adopt a comprehensive investment policy which details the local government's operative  policy and   instructions  to  officers  and  staff  regarding  the  investing, monitoring  and  reporting  of  funds  of  the  local  government.   The investment policy shall be annually reviewed by the local government.   2.  Funds of the local government, for purposes of this section, shall consist of all  moneys  and  other  financial  resources  available  for investment by the local government on its own behalf or on behalf of any other entity or individual.   3.  The  investment  policy  adopted  by  the  local  government shall include, but not be limited to, the following:  (a) A list  of  the  permitted  types  of  investments  of  the  local government, which shall be consistent with the appropriate provisions of law  relating  to  the  local government and any additional requirements pursuant to any contract with bondholders and noteholders or established by the local government.  (b) Procedures and provisions to secure in a satisfactory  manner  the local government's financial interest in investments.  (c) Standards for written agreements pursuant to which investments are made. Such standards shall be consistent with the appropriate provisions of  law relating to the local government and any additional requirements pursuant to any contract with bondholders and noteholders or established by the local government.  (d) Procedures for the monitoring, control, deposit and  retention  of investments and collateral.  (e)  Standards  for  security agreements and custodial agreements with banks or trust companies authorized to do business in the state  of  New York,  pursuant  to  which  obligations  and collateral are held by such banks and trust companies for the local government. Such standards shall be consistent with the appropriate provisions of  law  relating  to  the local  government  and  any  additional  requirements  pursuant  to  any contract with bondholders and noteholders or established  by  the  local government.  (f)  Standards  for  the  diversification    of investments, including diversification with respect  to  the  permitted  types  of  investments listed  in  accordance with paragraph (a) of this subdivision and to the firms with whom the local government transacts business. Such  standards may  also  specify  the  maximum  percentage  of  moneys  available  for temporary investment  or  the  maximum  dollar  amount  that  the  local government  is  authorized  to  invest  in  any  one  permitted  type of investment or pursuant to transactions with any one firm.  (g) Standards for the qualification  of  firms  with  whom  the  local government    transacts    business,    such    as   criteria   covering creditworthiness, experience, capitalization, size and any other factors that make a firm capable and qualified to  transact  business  with  the local government.  (h)  For  purposes of this section, the term "firm" shall include, but not be limited to, a bank or trust company as defined in subdivision one of section ten of this chapter, the lead participant  of  a  cooperative investment   agreement   as   defined  in  subdivision  one  of  section forty-nine-c of this chapter, and the seller of an  obligation  that  is purchased pursuant to a repurchase agreement.    4.  Each local government shall have the power to amend its investment policy from time to time in  accordance  with  the  provisions  of  this section.