N.Y. Workers' Compensation Law § 27-a: Investments in obligations of designated public benefit corporations; indemnifications

§ 27-a. Investments in obligations of designated public benefit

corporations; indemnifications. 1. The aggregate trust 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,

in accordance with a schedule to be established, subject to amendment

from time to time, by the state director of the budget in the aggregate

principal amount of seventy-five million dollars, of obligations of the

state of New York and of any one or more of the following public benefit

corporations: the New York state housing finance agency, including, but

not limited to, obligations secured by second mortgages on housing

projects insured by the Federal government or an agency thereof, the New

York state medical care facilities finance agency, the dormitory

authority and the New York state environmental facilities corporation.

The schedule of obligations to be purchased pursuant to this section may

include, but shall not be limited to, short term obligations of the

housing finance agency for purposes of proviving a bridge loan for the

financing of housing projects, in anticipation of the receipt of

proceeds from Federal mortgage insurance on such housing projects or

such other proceeds as may become available. Such schedule may be

amended from time to time to provide for the renewal, refunding,

redemption or repayment of notes purchased by the aggregate trust fund

in accordance with the schedule, or for the conversion of such notes

into bonds or other long term obligations, provided that at no time

shall the total aggregate amount of obligations held by the aggregate

trust fund pursuant to the provisions of this section exceed

seventy-five million dollars. The terms and conditions of such

obligations, including the times of purchase and maturities thereof and

the rates of interest thereon, shall be determined by the state

comptroller in the case of state obligations or by the public benefit

corporation issuing the obligations, provided such terms and obligations

are found to be fair and reasonable by the state superintendent of

financial services.

2. Notwithstanding any general or special provision of law to the

contrary, in order to obtain the monies necessary to purchase the

obligations required by subdivision one of this section, the

commissioners of the state insurance fund, in accordance with rules and

regulations adopted by such commissioners, shall have the right (i) to

borrow an amount not exceeding the obligation incurred by the aggregate

trust fund pursuant to this section, and to pledge as collateral

therefor such assets as they may deem advisable, (ii) to sell any fund

assets under an agreement or option for the repurchase thereof from

monies or assets in the fund or (iii) to sell fund assets on such terms

and conditions as are found to be fair and reasonable by the state

superintendent of financial services.

3. It is hereby found and declared that any and all obligations of the

state of New York, the New York state housing finance agency, the New

York state medical care facilities finance agency, the dormitory

authority and the New York state environmental facilities corporation,

are reasonable, prudent, proper and legal investments for the aggregate

trust fund and for all state officers with responsibility for the

custody or investment of such fund or of its assets.

4. Notwithstanding any other provision of law, no state officer with

responsibility for the custody or investment of the aggregate trust 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 two 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 aggregate trust fund.

5. a. Notwithstanding any other provision of law, including the

provisions of section seventeen of the public officers law, the

aggregate trust 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 aggregate trust 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, investment advisor, 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 aggregate trust 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 aggregate trust 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.