2010 New York Code
WKC - Workers' Compensation
Article 6 - (76 - 100) State Insurance Fund.
87-BB - Investments in obligations of the city of Yonkers; indemnification (1984).

§   87-bb.   Investments  in  obligations  of  the  city  of  Yonkers;
  indemnification (1984). 1. The  state  insurance  fund,  and  all  state
  officers  with responsibility for the custody or investment of such fund
  or of its assets, are authorized  and  directed  to  take  any  and  all
  actions necessary or appropriate to cause such fund to make purchases as
  soon  as  possible, but in no event later than September first, nineteen
  hundred eighty-eight, of obligations of the city of Yonkers or  renewals
  or  refundings  of obligations previously purchased by such fund, in the
  aggregate principal amount of ten million  dollars,  provided,  however,
  that  at  the  date  of  any  such  purchase the city of Yonkers has not
  defaulted in the payment of any  of  its  outstanding  bonds  or  notes.
  Notwithstanding any limitations on the private sale of bonds provided by
  law,  such  city  may sell bonds to such fund by private sale. The terms
  and conditions of such obligations, including the terms of purchase  and
  maturities  thereof,  and  the  rates  of  interest  thereon,  shall  be
  determined by the city of Yonkers, provided such  terms  and  conditions
  are  found  to  be  fair  and reasonable by the New York state emergency
  financial control board for the city of Yonkers and  the  superintendent
  of insurance.
    2. It is hereby found and declared that any and all obligations of the
  city  of  Yonkers  are reasonable, prudent, proper and legal investments
  for  the  state  insurance  fund  and  for  all  state   officers   with
  responsibility  for  the  custody  or  investment of such fund or of its
  assets.
    3. In order to obtain  the  funds  necessary  to  make  the  purchases
  required  by  subdivision one of this section, the state insurance fund,
  and all state officers with responsibility for the custody or investment
  of such fund or of its assets, are authorized and directed to  take  any
  and  all  actions  necessary  or  appropriate to cause such fund to sell
  securities owned by the fund or to borrow an amount  not  exceeding  the
  obligation  incurred by such fund pursuant to this section and to pledge
  as collateral therefor such assets, on such terms and conditions as  are
  found  to  be  fair  and  reasonable  by  the  state  superintendent  of
  insurance.
    4. Notwithstanding any other provision of law, no state  officer  with
  responsibility for the custody or investment of the state insurance fund
  or  of its assets, or for the approval of the sale or investment of such
  assets, nor any investment advisor, attorney, accountant or actuary  who
  shall  have  been  employed by or shall have advised such officer, shall
  incur or suffer any liability whatsoever to  any  person  by  reason  of
  actions taken pursuant to the authorization and direction of subdivision
  one  or  three of this section. Any action which could have been brought
  against any aforementioned state officer, investment advisor,  attorney,
  accountant  or  actuary,  except for the provisions of this subdivision,
  may be brought against the state insurance fund.
    5. a. Notwithstanding  any  other  provision  of  law,  including  the
  provisions  of  section  seventeen of the public officers law, the state
  insurance fund and the state, jointly and severally, shall save harmless
  and indemnify each and every state officer with responsibility  for  the
  custody  or investment of such fund or of its assets or for the approval
  of the sale or investment of such assets, and  any  investment  advisor,
  attorney,  accountant  or actuary who shall have been employed by or who
  shall have advised such officer, and the state shall save  harmless  and
  indemnify  the state insurance fund, from any and all financial loss and
  expense arising out of or in connection with any  claim,  demand,  suit,
  action, proceeding or judgment for alleged negligence, gross negligence,
  waste  or  breach of fiduciary duty, or incapacity of any kind by reason
  of any transaction  pursuant  to  the  authorization  and  direction  of

subdivision  one  or  three of this section, provided that such officer,
  investment  advisor,  attorney,  accountant  or  actuary  shall,  within
  fifteen  days  after  the date on which he is personally served with, or
  receives  actual  notice  of,  any  summons, complaint, process, notice,
  demand, claim or pleading, give notice  thereof  to  such  fund  or  the
  attorney  general.  Upon  such  notice  the state insurance fund and the
  attorney  general  shall,  if  so  requested,  assume  control  of   the
  representation   of   such  officer  or  investment  advisor,  attorney,
  accountant or actuary, in connection  with  such  claim,  demand,  suit,
  action  or  proceeding. Each person so represented shall cooperate fully
  with the fund and the attorney general or any other person designated to
  assume such defense in respect of such representation or defense.
    b. Notwithstanding any provision of law to  the  contrary,  the  state
  shall  also save harmless and indemnify the state insurance fund for any
  and all financial loss and expense arising out of or in connection  with
  any  claim,  demand,  suit,  action,  proceeding  or  judgment  rendered
  thereupon against such fund pursuant to subdivision four  hereof  or  by
  reason of any transaction pursuant to the authorization and direction of
  subdivision one or three of this section, provided that such fund shall,
  within  fifteen  days  after  the  date  on  which it is served with, or
  receives actual notice of,  any  summons,  complaint,  process,  notice,
  demand,  claim or pleading, give notice thereof to the attorney general.
  Upon such notice the  attorney  general  shall  assume  control  of  the
  representation of such fund in connection with such claim, demand, suit,
  action  or  proceeding. The fund shall cooperate fully with the attorney
  general or any other person designated to assume such defense in respect
  of such representation or defense.