N.Y. Workers' Compensation Law § 87-b: Investments in obligations of the city of Yonkers; indemnification

§ 87-b. Investments in obligations of the city of Yonkers;

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,

but in no event later than December first, nineteen hundred

seventy-five, of obligations of the city of Yonkers in the aggregate

principal amount of fifteen million dollars, provided, however, that at

the date of any such purchase the city of Yonkers has not defaulted in

the payment of any of its outstanding bonds or notes. The terms and

conditions of such obligations, including the rates of interest thereon,

shall be determined by the city of Yonkers, after consultation with the

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

to be fair and reasonable by the state comptroller.

2. It is hereby found and declared that obligations of the city of

Yonkers 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 city of Yonkers 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.