N.Y. Workers' Compensation Law § 87-h: Investments of the state insurance fund

§ 87-h. Investments of the state insurance fund. 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 to

take any and all actions necessary or appropriate to cause such fund to

make purchases of the interest of the New York state urban development

corporation in certain securities or moneys as described in section

three hundred thirty of the chapter of the laws of nineteen hundred

ninety which added this section or its interest in such portion of such

securities or moneys as shall be specified by the director of the

budget, for a price equal to the reasonable value of the securities or

moneys so purchased; provided that all payments which the fund shall be

entitled to as buyer of such interest of the New York state urban

development corporation in such moneys or securities as provided in such

chapter shall be secured through credit enhancement provided by an

enhancer whose credit rating at the time the enhancement arrangement is

entered into is at least "Aa" or "AA", as the case might be, by a

nationally recognized rating agency. Such fund is further authorized to

enter into such transactions with respect to such securities as are

necessary to effectuate the purposes of such chapter.

2. It is hereby found and declared that any and all such purchases of

such interest in such securities or moneys 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

authorized 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 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 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 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 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.