New York Laws
Title 2 - Establishment, Management, Supervision and Financing
13 - Management of Fund.

(a) Directly or indirectly, for himself or as an agent or partner of
others, 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 comptroller, or
(b) Become an endorser, surety or an obligor in any manner of monies
loaned by or borrowed of such funds.
h. The retirement system may use a part of its funds, not exceeding
ten per centum of its assets, (1) for purchasing or leasing of land in
the city 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, Syracuse, Buffalo, 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 the city of Albany on the north and
south sides of Washington avenue commonly known as the "Campus Site"
acquired by the state for a state buildings site pursuant to the
provisions of chapter five hundred seventy-two of the laws of nineteen
hundred forty-seven and the construction thereon of power plants
including service connections, electric substations including service
connections, garages, warehouses and restaurant facilities deemed
necessary for the efficient and economical operation of the office
building or buildings constructed on such land and (4) for purchasing or
leasing of land in the city of Albany acquired by the state for suitable
parking facilities for the use primarily of employees of the state and
persons having business with state departments and state agencies and
the construction thereon of such structures, appurtenances and
facilities deemed necessary for the efficient and economical operation
of the parking facilities constructed on such land and (5) 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 and (6) for purchasing of lands from the New York state thruway
authority and the construction thereon of an office building or other
buildings for purposes of lease or sale to the thruway authority for its

own use under such terms and conditions, including consideration and
length of term, as shall be agreed upon between the retirement system
and the thruway authority.
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.
i. At the close of each fiscal year, the average rate of investment
earnings of the retirement system shall be computed by the actuary and
certified to the comptroller. This rate shall be determined from the
investment earnings during the calendar year which ended three months
prior to the close of the fiscal year. For any year that such average
rate of earnings is in excess of three per centum but not in excess of
four per centum, the comptroller shall declare a rate of special
interest, for members earning regular interest of three per centum,
equal to the difference between such average rate of earnings and three
per centum expressed to the lower one-tenth of one per centum, but not
in excess of one per centum. For any year, commencing with the fiscal
year the first day of which is April first, nineteen hundred seventy,
that such average rate of earnings is in excess of four per centum, the
special rate of interest for members earning regular interest of three
per centum shall be equal to the difference between such average rate of
earnings and three per centum expressed to the lower one-tenth of one
per centum, but not in excess of two per centum, and for members earning
regular interest of four per centum, it shall be the difference between
such average rate of earnings and four per centum, expressed to the
lower one-tenth of one per centum, but not in excess of one per centum.
Special interest at such rates, shall be credited by the comptroller at
the same time that regular interest is credited, to the individual
annuity savings accounts of persons who are members as of the close of
the fiscal year. Special interest shall not be considered in determining
rates of contribution of members. In the case of persons who last became
members on or after July first, nineteen hundred seventy-three, the
provisions of this subdivision shall apply only to the fiscal years
beginning April first, nineteen hundred seventy-two and ending March
thirty-first, nineteen hundred seventy-three.
j. 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.
k. 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.