2010 New York Code
WKC - Workers' Compensation
Article 6 - (76 - 100) State Insurance Fund.
87-D - Contractual obligations as evidence of indebtedness upon reimbursement of reserves.

§  87-d.  Contractual  obligations  as  evidence  of indebtedness upon
  reimbursement of reserves. 1. a. Notwithstanding any other provision  of
  law the contrary, the state insurance fund, hereafter referred to as the
  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
  enter  into  an  agreement,  renewable  on  an  annual  basis,  with the
  department of civil service whereunder  the  state  shall  make  advance
  periodic  payments  to  the  fund  for  the  payment  to maturity of all
  obligations under this chapter of the state as employer and the fund  as
  insurer  with  respect  to  injuries  or deaths resulting from accidents
  arising out of and in the course of employment occurring prior to  April
  first, nineteen hundred eighty-one.
    b.  The  agreement  shall  provide that the fund shall segregate on an
  actuarially sound basis any and all monies and  assets  held  by  it  as
  reserves  for  the  payment  of such obligations of the state under this
  chapter, and pay to the state the aggregate amount thereof.
    c. The agreement shall further provide that if at any  time  prior  to
  July  first,  nineteen  hundred eighty-two, and at any time prior to the
  termination of any twelve month period immediately succeeding such  date
  during  which  the  agreement,  or  any renewal, is in effect, an amount
  equal to the total amount in the aggregate determined by the fund to  be
  required  to  pay to maturity the obligations referred to in paragraph a
  of this subdivision, has not been appropriated  by  the  state  for  the
  state  fiscal  year commencing April first, nineteen hundred eighty-two,
  or any subsequent fiscal year during which the agreement provided for in
  this  subdivision,  or  any  renewal  thereof,  is  in  existence,   the
  unliquidated  amount  of the agreement or the renewal, as computed on an
  actuarially sound basis by the fund, required to pay  in  the  aggregate
  the  remainder  of  such  incurred  obligations  to  maturity,  shall be
  immediately payable by the state to the fund from the funds appropriated
  by the state and encumbered by the agreement or renewal.
    2. It is hereby found and declared that the agreement provided for  in
  subdivision  one  of this section is an evidence of indebtedness, and as
  such, it shall be deemed an asset of the state  insurance  fund,  and  a
  proper  and  prudent  legal  undertaking  for any state officer with the
  responsibility for the custody or the investment of the  assets  of  the
  fund, notwithstanding any other provision of law to the contrary.
    3.  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 execution of  and  the  entering  into  the
  agreement  or  any  renewals,  as  required  by  subdivision one of this
  section, nor any 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 of this
  section.  Any  action  which  could  have  been  brought   against   any
  aforementioned  state  officer,  attorney, accountant or actuary, except
  for the provisions of this subdivision, may be brought against the state
  of New York.
    4. 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 execution
  of and the entering into the agreement as required by subdivision one of
  this  section,  and  any  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 two of this section,
  provided that such  officer,  attorney,  accountant  or  actuary  shall,
  within  five  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 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,
  provided  that such fund shall, within five 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.