Section 508. Investment of funds; interest; accounts; reports

1.  The
  members of the retirement board shall be the  trustees  of  the  several
  funds  created  by  this  article, and shall determine from time to time
  what part of the moneys belonging to  the  retirement  system  shall  be
  invested.  When  such  board  shall determine upon the investment of any
  moneys or upon the conversion or sale of any securities,  it  shall,  by
  resolution  duly adopted by a majority vote of the members of the board,
  direct the custodian to so invest the moneys  or  convert  or  sell  the
  securities.    Investments shall be made only in securities in which the
  trustees of a savings bank may invest the moneys  deposited  therein  as
  provided  by  law  except  that  the  retirement  system  shall have the
  authority to own any of its nominee corporations organized  pursuant  to
  subdivision  seventeen  of  this  section.  It  shall be the duty of the
  custodian to collect the interest thereon as the same  becomes  due  and
  payable  and  also  the  principal  thereof  and  place the same when so
  collected to the credit of the retirement system.
    2. The retirement board shall annually allow regular interest  on  the
  mean  amount for the preceding year in each of the funds created by this
  article, excepting the expense fund. The  amount  so  allowed  shall  be
  payable  to  said  funds  and  shall be annually credited thereto by the
  retirement board. All interest earned upon  the  entire  amount  of  the
  funds belonging to the retirement system shall be used for this purpose,
  unless  the  amount so earned is in excess of the requirements, in which
  case the excess amount shall be credited  to  the  pension  accumulation
  fund.  Any  deficiency  in  the  amount  required  to cover the interest
  requirements of the funds, exclusive of the pension  accumulation  fund,
  shall be paid from the pension accumulation fund.
    3. Except as herein provided, no member nor employee of the retirement
  board shall have any interest direct or indirect in the gains or profits
  of  any  investment made by the board nor as such directly or indirectly
  receive any pay or  emolument  for  his  services.  And  no  member  nor
  employee  of the said board directly or indirectly, for himself or as an
  agent or partner of others, nor a corporation of which he is an officer,
  stockholder or member, shall borrow any of its funds or deposits  or  in
  any  manner  use  the  same  except  to  make such current and necessary
  payments as are authorized  by  the  board;  nor  shall  any  member  or
  employee  of  said  board  become an endorser or surety or become in any
  manner an obligor for moneys loaned by or borrowed of the board. Nothing
  herein contained shall be construed to prevent a member or  an  employee
  of  the retirement board, who is also a member of the retirement system,
  from borrowing from his  accumulated  contributions  in  the  retirement
  system in accordance with section five hundred twelve-b of this article.
    4. The retirement board shall provide for maintenance of an individual
  account   with   each   member   showing  the  amount  of  the  member's
  contributions and the interest accumulations thereon.  It  shall  report
  annually  to  each  member  who  has  furnished the board with a mailing
  address the accumulated contributions credited to such account  together
  with the amount of service then credited to the member. It shall collect
  and  keep  in  convenient  form  such data as shall be necessary for the
  preparation of the required mortality and service tables,  and  for  the
  compilation  of  such  other  information  as  shall be required for the
  actuarial valuation of the assets and liabilities of the  various  funds
  created  by  this  article.  Upon the basis of the mortality and service
  experience  of  the  members  and  beneficiaries  of  the  system,   the
  retirement board from time to time shall adopt the tables to be used for
  valuation  purposes  and  for  determining the amount of annuities to be
  allowed on the basis of the contributions of members.

    5. At such time as the retirement board may deem it necessary  and  at
  least once each quinquennial period, the retirement board shall have its
  actuary prepare a report showing a complete valuation of the present and
  prospective  assets and liabilities of the various funds created by this
  article  with  the exception of the expense fund. The actuary shall make
  an investigation of the mortality and service experience of the  members
  of  the  retirement system and shall report fully upon its conditions as
  well as estimated future investment earnings with  such  recommendations
  as  he  shall deem advisable for the information of the retirement board
  in the proper operation of the retirement system.
    6. The records of  the  retirement  board  shall  be  open  to  public
  inspection.
    7.  The  retirement  board shall publish annually a report showing the
  condition of the various funds created by this  article,  certifying  to
  the  accumulated  cash and securities of the funds and giving an account
  of the operation of the system.
    8. The retirement system may use a part of its  funds,  not  exceeding
  ten  per centum of its net assets, (1) for purchasing or leasing of land
  within the county of Albany and the construction thereon of  a  suitable
  office  building or buildings for the transaction of the business of the
  retirement system and (2) for purchasing  or  leasing  of  land  in  the
  cities  of  Albany,  Binghamton,  New  York, Rochester and Utica and the
  construction thereon of a suitable  office  building  or  buildings  for
  purposes of lease or sale to the state and (3) for purchasing or leasing
  of  land  in locations approved by the state university trustees and the
  construction, acquisition, reconstruction, rehabilitation or improvement
  of suitable buildings or facilities thereon for  purposes  of  lease  or
  sale  to  the  state  university  construction  fund,  such buildings or
  facilities to be used by  the  state  university  or  by  state-operated
  institutions or statutory or contract colleges under the jurisdiction of
  the  state university or by the students, faculty and staff of the state
  university or of any such state-operated  institution  or  statutory  or
  contract college, and their families.
    The retirement system from time to time may lease to any public agency
  any  portion  of  a  building  constructed  for  the  transaction of its
  business which may not be required for such purpose, upon such terms and
  conditions as shall be deemed  to  be  for  the  best  interest  of  the
  retirement system.
    Real  property  of  the  retirement  system  acquired  or  constructed
  pursuant to this subdivision shall be exempt from taxation  as  provided
  in the real property tax law.
    10.   The   retirement  system  may  invest,  within  the  limitations
  authorized for investments in conventional  mortgages,  a  part  of  its
  funds  in  first  mortgages on real property located anywhere within the
  boundaries of the United States and leased  to  the  government  of  the
  United  States,  provided however, that no such investment shall be made
  unless the terms of the mortgage shall provide for amortization payments
  in an amount sufficient to  completely  amortize  the  loan  within  the
  period of the lease.
    11. The funds of the retirement system may be invested in the purchase
  of promissory notes or bonds from the farmers home administration issued
  in  connection  with  the  purchase  or improvement of real property and
  which are insured by the farmers home administration.
    13. Where any benefit accruing under the provisions of this article is
  payable to a minor, incompetent, or  any  other  person  under  a  legal
  disability  and  no  guardian  of  the property, committee or other such
  legal representative is duly appointed within six months of the date the
  benefit accrues to such person, the retirement board shall be authorized

  to adopt rules and regulations providing for a  savings  account  to  be
  established  for  each such person to which shall be paid the amounts of
  such benefits due and owing to such persons. Interest shall be  credited
  to  each savings account established pursuant to this subdivision in the
  same manner and amount as is credited to the  accumulated  contributions
  of  members  in  their  individual  accounts in the annuity savings fund
  pursuant to this article. The funds in such accounts shall  be  payable,
  within  a  reasonable time after proper notification to the system, to a
  guardian of the property, committee or other such  legal  representative
  after such person is duly appointed or to the beneficiary once the legal
  disability is removed. A payment made pursuant to the provisions of this
  subdivision shall release the system from any liability whatsoever.
    14.  The retirement board is hereby authorized to buy securities under
  an agreement providing for the repurchase thereof. The retirement  board
  is also authorized to assign commitments to invest system funds pursuant
  to   an   agreement  providing  for  the  subsequent  purchase  of  such
  investments.   The securities purchased  pursuant  to  this  subdivision
  shall  meet  the  eligibility  standards  prescribed  for  such class of
  investments.
    15.  During  the  period  ending  June  thirtieth,  nineteen   hundred
  seventy-seven,  the  retirement  board is authorized, in order to obtain
  the funds necessary to make investments without the conversion  or  sale
  of  securities it holds, to borrow an amount not exceeding the amount to
  be invested, upon such terms and conditions as the board, by resolution,
  shall approve, which terms may include the pledge of any assets of  such
  system  as  may  be  necessary  to  secure  the  repayment of the amount
  borrowed, provided that the total amount of such borrowing  at  no  time
  shall exceed five per centum of the system's assets.
    16.   (a)   The   retirement   system  is  authorized  to  photograph,
  microphotograph, film, record, copy, image or otherwise reproduce all or
  any part of its records by any process which  accurately  reproduces  or
  forms  a durable medium for reproducing any original document or record.
  Whenever the retirement system shall have so reproduced such records and
  whenever such reproductions or media have been  placed  in  conveniently
  accessible  files  and provision has been made for preserving, examining
  and using the same, the retirement system may cause the original  record
  which has been so reproduced to be disposed of or destroyed.
    (b)  Any  reproduction  or  reproduction  from  any  media  authorized
  pursuant to this subdivision shall have the same force and effect as the
  originals thereof would have had and shall be deemed to be  an  original
  record  for  all  purposes,  including  introduction  in evidence in all
  courts or  administrative  agencies.  Duly  certified  or  authenticated
  copies  of such reproductions shall be admitted in evidence equally with
  the original reproductions.
    (c) A duly authorized  representative  of  the  retirement  system  is
  hereby  authorized  to  certify  to the authenticity of any reproduction
  herein authorized and the retirement  system  shall  make  such  charges
  therefor as may be authorized by law.
    17.  Any  real  estate  interests  acquired  by  the retirement system
  pursuant to this section, or pursuant to any  other  provision  of  law,
  shall be conveyed to it directly by name, or may be taken in the name of
  a  duly  authorized  nominee.  The  retirement  system  shall  have  the
  authority to organize corporations for the purpose of carrying  out  the
  intent  of this subdivision, and may make loans to said corporations for
  the  purpose  of  operating,  preserving,  or  otherwise  servicing  any
  property being held by said corporations.
    18.   Notwithstanding   any  other  provision  of  this  section,  the
  retirement board shall have  the  power  to  delegate  to  one  or  more

  investment  managers  its  authority  to  invest moneys belonging to the
  retirement system. The  term  "investment  managers"  as  used  in  this
  subdivision  shall include but not be limited to independent contractors
  selected by the retirement board.
    19.  Whenever  a  statute  requires  that  a document must be filed or
  moneys deposited with the system within a prescribed period of  time  or
  by  a  specified  date  in order for a member to be eligible for service
  credit or a benefit from the system the document shall be  deemed  filed
  or  the  moneys  deposited  with  the  system on the day they are mailed
  through the United States postal service  provided  the  mailing  is  by
  registered  or  certified mail or such other equivalent service provided
  by the  United  States  postal  service  as  the  retirement  board  may
  specifically   permit   by   rule  or  regulation.  Notwithstanding  the
  provisions hereof, no such document shall  be  deemed  filed  or  moneys
  deposited with the system on the day of mailing unless actually received
  by the retirement system as a result of such mailing.