New York Laws
Title 3 - Establishment, Management, Supervision and Financing
313 - Management of Funds.

(a) Directly or indirectly, for himself or herself 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 police and fire 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, (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, (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 building 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.
The police and fire 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 police and fire retirement system.
Real property of the police and fire 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.