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Originally Posted by Fbone
I believe IA/OL destroy the physical copies when they create the digital. This may be how they are able to loan the ebook.
NYPL is supported by public funding and is, therefore, required to conform to NY State and Federal laws. According to the Wiki, "The NYPL, like all public libraries in New York, is granted a charter from the Board of Regents of the University of the State of New York and is registered with the New York State Education Department. The basic powers and duties of all library boards of trustees are defined in the Education Law and are subject to Part 90 of Title 8 of the New York Codes, Rules and Regulations."
That's what I mean when I say "government entity." Yes, it has, like most public libraries, a non-profit corporate structure but it still needs to follow the statutes set out by NY otherwise they can lose their funding.
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It's not clear to me that this justifies calling the NYPL a government entity. The Board of Regents and the NYS Education Department are the same agencies that oversee all schools and colleges in New York, public or private, as well as many museums. For example, Cornell University wouldn't usually be considered a government entity, even though it has entire schools, such as their Ag School, that are funded by the state. The three public library systems in NYC do get most of the money for their local branches from the city, but I don't see that they're any more tightly regulated under state law than private, non-profit universities or museums.