§ 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.