2010 New York Code
WKC - Workers' Compensation
Article 6 - (76 - 100) State Insurance Fund.
87-H - Investments of the state insurance fund.

§  87-h.  Investments  of  the  state  insurance  fund. 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 to
  take any and all actions necessary or appropriate to cause such fund  to
  make  purchases  of the interest of the New York state urban development
  corporation in certain securities or  moneys  as  described  in  section
  three  hundred  thirty  of  the  chapter of the laws of nineteen hundred
  ninety which added this section or its interest in such portion of  such
  securities  or  moneys  as  shall  be  specified  by the director of the
  budget, for a price equal to the reasonable value of the  securities  or
  moneys  so purchased; provided that all payments which the fund shall be
  entitled to as buyer of such  interest  of  the  New  York  state  urban
  development corporation in such moneys or securities as provided in such
  chapter  shall  be  secured  through  credit  enhancement provided by an
  enhancer whose credit rating at the time the enhancement arrangement  is
  entered  into  is  at  least  "Aa"  or  "AA", as the case might be, by a
  nationally recognized rating agency. Such fund is further authorized  to
  enter  into  such  transactions  with  respect to such securities as are
  necessary to effectuate the purposes of such chapter.
    2. It is hereby found and declared that any and all such purchases  of
  such  interest  in  such  securities  or moneys 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
  authorized 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  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 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 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  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.