Section 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.