Relates to alternative investment bonds

This bill creates a new type of state investment instrument called "alternative finance investment bonds" to provide investment options for New York residents who cannot use conventional interest-based bonds due to religious, moral, or personal reasons. These bonds represent ownership in tangible assets or projects (not loans), with repayment terms structured to avoid interest payments while offering reasonable commercial returns. The bill directs state officials to develop this instrument within one year, consult on its regulation, and report on its potential use for economic development - especially in distressed communities. It aims to broaden investment participation, lower borrowing costs for New York, and attract new capital without changing existing bond regulations.