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.