N.Y. Workers' Compensation Law § 87-d: Contractual obligations as evidence of indebtedness upon reimbursement of reserves

§ 87-d. Contractual obligations as evidence of indebtedness upon

reimbursement of reserves. 1. a. Notwithstanding any other provision of

law the contrary, the state insurance fund, hereafter referred to as the

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

enter into an agreement, renewable on an annual basis, with the

department of civil service whereunder the state shall make advance

periodic payments to the fund for the payment to maturity of all

obligations under this chapter of the state as employer and the fund as

insurer with respect to injuries or deaths resulting from accidents

arising out of and in the course of employment occurring prior to April

first, nineteen hundred eighty-one.

b. The agreement shall provide that the fund shall segregate on an

actuarially sound basis any and all monies and assets held by it as

reserves for the payment of such obligations of the state under this

chapter, and pay to the state the aggregate amount thereof.

c. The agreement shall further provide that if at any time prior to

July first, nineteen hundred eighty-two, and at any time prior to the

termination of any twelve month period immediately succeeding such date

during which the agreement, or any renewal, is in effect, an amount

equal to the total amount in the aggregate determined by the fund to be

required to pay to maturity the obligations referred to in paragraph a

of this subdivision, has not been appropriated by the state for the

state fiscal year commencing April first, nineteen hundred eighty-two,

or any subsequent fiscal year during which the agreement provided for in

this subdivision, or any renewal thereof, is in existence, the

unliquidated amount of the agreement or the renewal, as computed on an

actuarially sound basis by the fund, required to pay in the aggregate

the remainder of such incurred obligations to maturity, shall be

immediately payable by the state to the fund from the funds appropriated

by the state and encumbered by the agreement or renewal.

2. It is hereby found and declared that the agreement provided for in

subdivision one of this section is an evidence of indebtedness, and as

such, it shall be deemed an asset of the state insurance fund, and a

proper and prudent legal undertaking for any state officer with the

responsibility for the custody or the investment of the assets of the

fund, notwithstanding any other provision of law to the contrary.

3. 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 execution of and the entering into the

agreement or any renewals, as required by subdivision one of this

section, nor any 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 of this

section. Any action which could have been brought against any

aforementioned state officer, attorney, accountant or actuary, except

for the provisions of this subdivision, may be brought against the state

of New York.

4. 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 execution

of and the entering into the agreement as required by subdivision one of

this section, and any 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 two of this section,

provided that such officer, 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 state insurance fund and the

attorney general shall, if so requested, assume control of the

representation of such officer or 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,

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.