N.Y. Retirement & Social Security Law § 179: Investments in municipal assistance corporation obligations; indemnification

§ 179. Investments in municipal assistance corporation obligations;

indemnification. 1. It is hereby found and declared that obligations of

the municipal assistance corporation for the city of New York are

reasonable, prudent, proper and legal investments for any fund described

in subdivision one of section one hundred seventy-six of this article or

for any board member, officer, employee, trustee or fiduciary thereof to

make on behalf of such fund.

2. Notwithstanding any other provision of law, including the

provisions of subdivision one of section seventeen of the public

officers law, no member of the board, officer, employee, fiduciary of

any fund described in subdivision one of section one hundred seventy-six

of this article shall incur or suffer any liability whatsoever to any

person beneficially interested in such system by reason of any

investment of the monies thereof in obligations of the municipal

assistance corporation for the city of New York and each such system

shall save harmless and indemnify all members of the board, officers,

employees, trustees, fiduciaries and investment advisors of any fund

described in subdivision one of section one hundred seventy-six of this

article from financial loss arising out of any claim, demand, suit,

action or judgment for alleged negligence, waste or breach of fiduciary

duty by reason of any investment of any monies of such fund in

obligations of the municipal assistance corporation for the city of New

York provided that such person shall, within five days after the date on

which he is served with any summons, complaint, process, notice, demand,

claim or pleading, deliver the original or a true copy thereof to the

legal advisor of such system. Upon such delivery the legal advisor of

such system may assume control of the representation of such person in

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

person shall cooperate fully with the legal advisor of the system or any

other person designated to assume such defense in respect of such

representation or defense.

3. The provisions of this section shall not be applicable to purchases

made by the New York city employees' retirement system, the board of

education retirement system of the city of New York, the teachers'

retirement system of the city of New York, the New York city police

pension funds and fire department pension funds in obligations of the

municipal assistance corporation for the city of New York and

obligations of the city of New York from the municipal assistance

corporation for the city of New York and the city of New York after

November twenty-third, nineteen hundred seventy-five, but nothing herein

contained shall be deemed to diminish the indemnification provided for

purchases made by the New York city employees' retirement system, the

board of education retirement system of the city of New York, the New

York city police pension funds and fire department pension funds in

obligations of the municipal assistance corporation for the city of New

York and obligations of the city of New York from the municipal

assistance corporation for the city of New York and the city of New York

on and after September ninth, nineteen hundred seventy-five, but prior

to November twenty-third, nineteen hundred seventy-five, in accordance

with the provisions of this section.