N.Y. Workers' Compensation Law § 87-a: Investment in obligations of the municipal assistance corporation for the city of New York; indemnification

§ 87-a. Investment in obligations of the municipal assistance

corporation for the city of New York; indemnification. 1. The state

insurance fund, and all state officers with responsibility for the

custody or investment thereof, are authorized and directed to take any

and all actions necessary or appropriate to cause such fund to make

purchases as soon as possible, in accordance with a schedule to be

established by the New York state emergency financial control board, but

in no event later than December first, nineteen hundred seventy-five, of

bonds of the municipal assistance corporation for the city of New York

in the aggregate principal amount of one hundred million dollars,

provided, however, that at the date of any such purchase the city of New

York has not defaulted in the payment of any of its outstanding bonds or

notes. The terms and conditions of such bonds, including the rates of

interest thereon, shall be determined by the municipal assistance

corporation for the city of New York, after consultation with the

commissioners of the fund, provided such terms and conditions are found

to be fair and reasonable by the New York state emergency financial

control board.

2. 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 the state insurance fund or for any

state officer with custody or responsibility for the investment of the

assets thereof.

3. Notwithstanding any other provision of law, including the

provisions of section seventeen of the public officers law, no state

officer with custody or responsibility for the investment of the assets

thereof shall incur or suffer any liability whatsoever to any person

beneficially interested in such system by reason of actions taken

pursuant to the authorization and direction of subdivision one and such

fund shall save harmless and indemnify all such officers and any

investment advisors 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 the state

insurance 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 the state insurance fund 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.

4. In order to obtain the funds necessary to purchase the bonds

required by this chapter, the commissioners of the state insurance fund

in accordance with rules and regulations adopted by such commissioners

shall have the right to borrow an amount not exceeding the obligation

incurred by such fund pursuant to this chapter and to pledge as

collateral therefor such assets as they may deem advisable.