N.Y. Education Law § 355-b: Investments in designated obligations; indemnifications

§ 355-b. Investments in designated obligations; indemnifications. 1.

It is hereby found and declared that obligations of the state of New

York, the New York state housing finance agency and the dormitory

authority of the state of New York are reasonable, prudent, proper and

legal investments in which all gifts, grants, bequests and devises

administered as endowments by the state university trustees may be

invested by such trustees or any officer, employee or fiduciary thereof.

For the purposes of this section such gifts, grants, bequests and

devises shall be referred to as endowment funds.

2. Notwithstanding any inconsistent provisions of law, the state

university trustees may, in their discretion, purchase obligations

designated and found to be reasonable, prudent, proper and legal

investments in subdivision one of this section for such endowment funds

without regard to the percentage of the assets of such endowment funds

invested in such obligations and without regard to the percentage of

outstanding obligations of each issuer held or to be held by such funds.

The state university trustees in determining investments for such

endowment funds in such obligations may consider, in addition to the

appropriate factors recognized by law, the extent to which such

investments will maintain the credit worthiness of the state of New York

and the public benefit corporations identified in subdivision one of

this section so as to enable the state and such corporations to finance

the construction of capital facilities heretofore and hereafter duly

authorized for the state university.

3. Notwithstanding any other provisions of law, including the

provisions of section seventeen of the public officers law, the state

shall save harmless and indemnify each and every trustee, officer,

employee or fiduciary with responsibility for the custody of endowment

funds or the assets thereof or for the approval of the sale or

investment of the assets of such endowment funds, and any investment

adviser, attorney or accountant who shall have been employed by or who

have advised such trustee, officer, employee or fiduciary, from any or

all financial loss arising out of or in connection with any claim,

demand, suit, action, proceeding or judgment for alleged negligence,

waste or breach of fiduciary duty by reason of any investment by any

endowment funds in any obligations designated in subdivision one of this

section, or resulting from the sale of any assets of any endowment fund

to obtain sufficient revenues to make such investments, provided that

such trustee, officer, employee, fiduciary, investment adviser, attorney

or accountant 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, shall give notice

thereof to the attorney general. Upon such notice, the attorney general

shall assume control of the representation of such trustee, officer,

employee, fiduciary, investment adviser, attorney or accountant in

connection with such claim, demand, suit, action or proceeding. Each

person so represented shall cooperate fully with the attorney general or

any other person designated to assume such defense in respect of such

representation or defense.