N.Y. Workers' Compensation Law § 87-bb: Investments in obligations of the city of Yonkers; indemnification (1984)

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

indemnification (1984). 1. The state insurance 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 as

soon as possible, but in no event later than September first, nineteen

hundred eighty-eight, of obligations of the city of Yonkers or renewals

or refundings of obligations previously purchased by such fund, in the

aggregate principal amount of ten 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.

Notwithstanding any limitations on the private sale of bonds provided by

law, such city may sell bonds to such fund by private sale. The terms

and conditions of such obligations, including the terms of purchase and

maturities thereof, and the rates of interest thereon, shall be

determined by the city of Yonkers, provided such terms and conditions

are found to be fair and reasonable by the New York state emergency

financial control board for the city of Yonkers and the superintendent

of financial services.

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

city of Yonkers are reasonable, prudent, proper and legal investments

for the state insurance fund and for all state officers with

responsibility for the custody or investment of such fund or of its

assets.

3. In order to obtain the funds necessary to make the purchases

required by subdivision one of this section, the state insurance 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 sell

securities owned by the fund or to borrow an amount not exceeding the

obligation incurred by such fund pursuant to this section and to pledge

as collateral therefor such assets, on such terms and conditions as are

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

services.

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

responsibility for the custody or investment of the state insurance 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 three 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 state insurance fund.

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

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

insurance 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 state insurance 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 three of this section, provided that such officer,

investment advisor, attorney, accountant or actuary shall, within

fifteen 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 state insurance 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 state insurance 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 or by

reason of any transaction pursuant to the authorization and direction of

subdivision one or three of this section, provided that such fund shall,

within fifteen 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.