NY Pub Auth L § 2925 (2021)
2021 New York Laws PBA - Public Authorities Article 9 - General Provisions Title 7 - Investments of Public Authorities 2925 - Investments of Funds by Public Authorities and Public Benefit Corporations; General Provisions.

§  2925. Investments of funds by public authorities and public benefit corporations; general provisions. 1. Every public  authority  and  every public  benefit corporation whether or not such corporation is otherwise governed by this chapter, (such entities to be hereinafter in this title referred to as "corporation") shall by  resolution  adopt  comprehensive investment  guidelines  which  detail the corporation's operative policy and  instructions  to  officers  and  staff  regarding  the   investing, monitoring  and  reporting  of  funds of the corporation. The investment guidelines approved by the corporation shall be  annually  reviewed  and approved by the corporation.   2. Funds of the corporation, for purposes of this title, shall consist of  all moneys and other financial resources available for investment by the corporation on its own behalf or on behalf of any  other  entity  or individual.   3.  The  investment  guidelines  approved  by  the  corporation  shall include, but not be limited to the following:  (a) A detailed list of the permitted investments of  the  corporation, which  shall  be  consistent  with  the  appropriate  provisions  of law relating to the corporation and any additional requirements pursuant  to any contract with bondholders and noteholders.  (b)  Procedures  and  provisions  to  fully  secure  the corporation's financial interest in investments;  provided  that  the  guidelines  may include a description of the circumstances under which the corporation's financial interest in investments may be less than fully secured.  (c)  A  requirement  that  the  corporation  shall  enter into written contracts pursuant to which investments are made, unless the corporation shall by resolution determine that a written contract is  not  practical or  that  there  is not a regular business practice of written contracts with respect to a specific investment or transaction, in which case  the corporation   shall   adopt   procedures  covering  such  investment  or transaction. Such contracts and procedures shall include provisions:  (i) deemed necessary and sufficient to secure in a satisfactory manner the corporation's financial interest in each investment;  (ii) covering the use, type and amount of collateral or insurance  for each investment;  (iii)   establishing   a  method  for  valuation  of  collateral,  and procedures for monitoring the valuation of such collateral on a  regular basis;  (iv) for the monitoring, control, deposit and retention of investments and  collateral  which  shall  include,  in  the  case  of  a repurchase agreement, a requirement that the obligations  purchased  be  physically delivered for retention to the corporation or its agent (which shall not be  an  agent  of  the  party with whom the corporation enters into such repurchase agreement), unless such obligations are issued in  book-entry form,  in which case the corporation shall take such other action as may be necessary to obtain title to or a perfected security interest in such obligations.  (d)  Standards  for  the  diversification  of  investments,  including diversification  with  respect  to  types  of investments and firms with which the corporation transacts business.  (e) Standards for the qualification of  investment  bankers,  brokers, agents,  dealers and other investment advisers and agents which transact business with  the  corporation,  such  as  criteria  covering  quality, reliability,  experience,  capitalization,  size  and  any other factors that, in the judgment of the  corporation,  make  a  firm  qualified  to transact business with the corporation.  (f)  Provisions  for  reporting on the investments of the corporation, including provisions for an annual independent audit of all investments,  the results of which shall be available to the board  at  the  time  the annual  review and approval of investment guidelines is conducted by the corporation.   4.  Each  corporation  shall have the power from time to time to amend such investment guidelines in accordance with  the  provisions  of  this title.   5.  Each  corporation shall direct the preparation and filing with the board of quarterly reports, or reports covering such other period as may be approved by the corporation, from a designated  officer  or  employee regarding  any  new  investments, the inventory of existing investments, and the selection of investment bankers,  brokers,  agents,  dealers  or auditors.   6.  Each  corporation shall annually prepare and approve an investment report which shall include the investment guidelines,  as  specified  in subdivision  three  of this section, amendments to such guidelines since the last investment report, an explanation of the investment  guidelines and  amendments,  the  results  of  the  annual  independent  audit, the investment income record of the corporation and  a  list  of  the  total fees,  commissions  or  other  charges  paid  to each investment banker, broker,  agent,  dealer  and  adviser  rendering  investment  associated services  to  the  corporation  since  the  last investment report. Such investment report may be a part of any  other  annual  report  that  the corporation is required to make.   7. (a) Each corporation, a majority of the members of which consist of persons  appointed  by the governor or who serve as members by virtue of holding a civil office of the state, or  a  combination  thereof,  shall annually  submit its investment report to the division of the budget and copies thereof to the  department  of  audit  and  control,  the  senate finance committee and the assembly ways and means committee.  (b)   Each  corporation,  other  than  a  corporation  included  under paragraph (a) of this subdivision, shall annually submit its  investment report  to  the chief executive officer and chief fiscal officer of each municipality for the  benefit  of  which  it  was  created  and  to  the department of audit and control.  (c)  Each corporation shall make available to the public copies of its investment report upon reasonable request therefor.   8. Nothing contained in this section shall be deemed to alter,  affect the  validity  of, modify the terms of or impair any contract, agreement or investment of funds made or entered into in violation of, or  without compliance with, the provisions of this title.