New York Laws
Article 6 - Funds of the State
98 - Investment of State Funds.

§ 98. Investment of state funds. The comptroller shall invest and keep
invested all moneys belonging to any and all funds which the comptroller
now is or hereafter shall be authorized to invest, in any of the
following securities:

1. Bonds and notes of the United States.

2. Bonds and notes of this state.

2-a. General obligation bonds and notes of any state other than this
state, provided that such bonds and notes receive the highest rating of
at least one independent rating agency designated by the comptroller.

3. Obligations for the payment of which the faith and credit of the
United States or of this state are pledged.

3-a. Notes, bonds, debentures, mortgages and other evidences of
indebtedness of the United States Postal Service; the federal national
mortgage association; federal home loan mortgage corporation; student
loan marketing association; federal farm credit system or any other
United States government sponsored agency, provided that at the time of
the investment such agency or its obligations are rated and the agency
receives, or its obligations receive, the highest rating of all
independent rating agencies that rate such agency or its obligations,
provided, however, that no more than five hundred million dollars may be
invested in the obligations of any one agency.

4. Judgments or awards of the court of claims of this state.

5. Stocks, bonds, or notes of any county, town, city, village, fire
district or school district of this state issued pursuant to law.

6. Mortgage bonds or any obligations for the payment of money, no
matter how designated, secured by another instrument representing a lien
on specific real property or a leasehold thereof, heretofore or
hereafter and at the time of the assignment thereof to the comptroller
insured by the federal housing administrator or any of his successors in
office and guaranteed by the United States under the provisions of the
national housing act, as amended or supplemented. Any such mortgage
bonds or obligations as aforesaid in which the comptroller has invested
or shall have invested pursuant to this subdivision shall be serviced by
the comptroller or in his discretion, by mortgagees, as such are defined
by the national housing act, as amended or supplemented, duly appointed
by him and subject to the inspection and supervision of some
governmental agency. The comptroller may receive and hold such
debentures and certificates or other obligations as are issued in
payment of such insurance or guarantee.

7. Bonds and notes of the Savings and Loan Bank of the state of New
York.

8. Bonds or notes of any housing authority of this state duly issued
pursuant to law.

9. Bonds or notes of any regulating district of this state duly issued
pursuant to law.

10. Bonds or notes of any drainage improvement district of this state
duly issued pursuant to law.

11. Bonds or notes of the authorities or commissions set forth below
when issued pursuant to law:

a. Port of New York Authority.

b. Niagara Frontier Authority.

c. Triborough bridge and tunnel authority.

d. Thousand Islands Bridge Authority.

e. New York State Bridge Authority.

f. New York City Tunnel Authority.

g. Lake Champlain Bridge Commission.

h. Lower Hudson Regional Market Authority.

i. Albany Regional Market Authority.


k. American Museum of Natural History Planetarium Authority.

l. Industrial Exhibit Authority.

m. Buffalo Sewer Authority.

n. Whiteface Mountain Authority.

o. Pelham-Portchester Parkway Authority.

p. Jones Beach State Parkway Authority.

q. Bethpage Park Authority.

r. Dormitory Authority.

s. Central New York Regional Market Authority.

t. Erie County Water Authority.

u. Suffolk County Water Authority.

v. New York State Thruway Authority.

w. Genesee Valley Regional Market Authority.

x. Onondaga county water authority.

y. Power Authority of the state of New York.

z. Ogdensburg Bridge and Port Authority.

aa. East Hudson Parkway Authority.

aa. Niagara Frontier Port Authority.

bb. Northwestern New York Water Authority.

cc. Metropolitan Commuter Transportation Authority.

dd. Niagara Frontier Transportation Authority.

dd. New York State Pure Waters Authority.

ee. Rochester-Genesee Regional Transportation Authority.

ff. Capital District Transportation Authority.

ff. Central New York Regional Transportation Authority.

12. Obligations of the International Bank for Reconstruction and
Development duly issued pursuant to law.

13. Obligations of the inter-American development bank duly issued
pursuant to law.

13-a. Obligations of the Asian Development Bank duly issued pursuant
to law.

13-b. Obligations of the African Development Bank duly issued pursuant
to law.

13-c. Obligations of the International Finance Corporation duly issued
pursuant to law.

* 14. Collateral trust notes issued by a trust company, all of the
capital stock of which is owned by not less than twenty savings banks of
the state of New York.

* NB There are 2 sb 14's

* 14. Bonds and notes issued for any of the corporate purposes of the
New York state housing finance agency.

* NB There are 2 sb 14's

15. Bonds and notes issued for any of the corporate purposes of the
New York state medical care facilities finance agency.

16. Bonds and notes issued for any of the corporate purposes of the
New York state project finance agency.

17. Bonds and notes issued for any of the corporate purposes of the
municipal assistance corporation for New York City.

18. Obligations of any corporation organized under the laws of any
state in the United States maturing within two hundred seventy days
provided that such obligations receive the highest rating of two
independent rating services designated by the comptroller and that the
issuer of such obligations has maintained such ratings on similar
obligations during the preceding six months provided, however, that the
issuer of such obligations need not have received such rating during the
prior six month period if such issuer has received the highest rating of
two independent rating services designated by the state comptroller and
is the successor or wholly owned subsidiary of an issuer that has

maintained such ratings on similar obligations during the preceding six
month period or if the issuer is the product of a merger of two or more
issuers, one of which has maintained such ratings on similar obligations
during the preceding six month period, provided, however, that no more
than five hundred million dollars may be invested in such obligations of
any one corporation.

19. Bankers' acceptances maturing within ninety days which are
eligible for purchase in the open market by federal reserve banks and
which have been accepted by a bank or trust company, which is organized
under the laws of the United States or of any state thereof and which is
a member of the federal reserve system and whose short-term obligations
meet the criteria outlined in subdivision eighteen of this section.
Provided, however, that no more than five hundred million dollars may be
invested in such bankers' acceptance of any one bank or trust company.

20. No-load money market mutual funds registered under the Securities
Act of 1933, as amended, and operated in accordance with Rule 2a-7 of
the Investment Company Act of 1940, as amended, provided that such funds
are limited to investments in obligations issued or guaranteed by the
United States of America or in obligations of agencies or
instrumentalities of the United States of America where the payment of
principal and interest are guaranteed by the United States of America
(including contracts for the sale and repurchase of any such
obligations), and are rated in the highest rating category by at least
one nationally recognized statistical rating organization, provided,
however, that no more than two hundred fifty million dollars may be
invested in such funds.

The comptroller, whenever he deems it for the best interest of any of
such funds, may dispose of any of the securities therein or investments
therefor, in making other investments authorized by law, and he may
exchange any such securities for those held in any other of such funds,
and the comptroller may take such action as may be necessary to obtain
the benefits of the insurance provided for in the national housing act,
and may draw his warrant upon the treasurer for the amount required for
such investments and exchanges.

Notwithstanding the provisions of any other general or special law,
the comptroller shall not invest the moneys of any fund in any security
or securities except as above described, provided, however, that: (a)
the comptroller may, in order to maximize the rate of return on
investments, invest the moneys belonging to the New York interest on
lawyer account fund in notes, securities and deposits of banking
institutions which accept IOLA accounts, and (b) the provisions of this
section shall not limit the types of investments that may be made with
moneys belonging to the volunteer ambulance service award fund
established by section two hundred nineteen-h of the general municipal
law.

Structure New York Laws