§ 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 date mailed if mailed to
the system either through (1) the United States postal service by
registered or certified mail or (2) such other equivalent postal mail
service as the retirement board may specifically permit by rule or
regulation with a tracking service confirming a date of mailing.
Notwithstanding the provisions hereof, no such document shall be deemed
filed or moneys deposited with the system on the mailing date unless
actually received by the retirement system as the result of such
mailing.