N.Y. WKC Law § 87-BB — New York Code / Act WKC / Article 6 / Section 87-BB
Investments in obligations of the city of Yonkers; indemnification (1984)
Status: in_force

§ 87-bb. Investments in obligations of the city of Yonkers;\nindemnification (1984). 1. The state insurance fund, and all state\nofficers with responsibility for the custody or investment of such fund\nor of its assets, are authorized and directed to take any and all\nactions necessary or appropriate to cause such fund to make purchases as\nsoon as possible, but in no event later than September first, nineteen\nhundred eighty-eight, of obligations of the city of Yonkers or renewals\nor refundings of obligations previously purchased by such fund, in the\naggregate principal amount of ten million dollars, provided, however,\nthat at the date of any such purchase the city of Yonkers has not\ndefaulted in the payment of any of its outstanding bonds or notes.\nNotwithstanding any limitations on the private sale of bonds provided by\nlaw, such city may sell bonds to such fund by private sale. The terms\nand conditions of such obligations, including the terms of purchase and\nmaturities thereof, and the rates of interest thereon, shall be\ndetermined by the city of Yonkers, provided such terms and conditions\nare found to be fair and reasonable by the New York state emergency\nfinancial control board for the city of Yonkers and the superintendent\nof financial services.\n  2. It is hereby found and declared that any and all obligations of the\ncity of Yonkers are reasonable, prudent, proper and legal investments\nfor the state insurance fund and for all state officers with\nresponsibility for the custody or investment of such fund or of its\nassets.\n  3. In order to obtain the funds necessary to make the purchases\nrequired by subdivision one of this section, the state insurance fund,\nand all state officers with responsibility for the custody or investment\nof such fund or of its assets, are authorized and directed to take any\nand all actions necessary or appropriate to cause such fund to sell\nsecurities owned by the fund or to borrow an amount not exceeding the\nobligation incurred by such fund pursuant to this section and to pledge\nas collateral therefor such assets, on such terms and conditions as are\nfound to be fair and reasonable by the state superintendent of financial\nservices.\n  4. Notwithstanding any other provision of law, no state officer with\nresponsibility for the custody or investment of the state insurance fund\nor of its assets, or for the approval of the sale or investment of such\nassets, nor any investment advisor, attorney, accountant or actuary who\nshall have been employed by or shall have advised such officer, shall\nincur or suffer any liability whatsoever to any person by reason of\nactions taken pursuant to the authorization and direction of subdivision\none or three of this section. Any action which could have been brought\nagainst any aforementioned state officer, investment advisor, attorney,\naccountant or actuary, except for the provisions of this subdivision,\nmay be brought against the state insurance fund.\n  5. a. Notwithstanding any other provision of law, including the\nprovisions of section seventeen of the public officers law, the state\ninsurance fund and the state, jointly and severally, shall save harmless\nand indemnify each and every state officer with responsibility for the\ncustody or investment of such fund or of its assets or for the approval\nof the sale or investment of such assets, and any investment advisor,\nattorney, accountant or actuary who shall have been employed by or who\nshall have advised such officer, and the state shall save harmless and\nindemnify the state insurance fund, from any and all financial loss and\nexpense arising out of or in connection with any claim, demand, suit,\naction, proceeding or judgment for alleged negligence, gross negligence,\nwaste or breach of fiduciary duty, or incapacity of any kind by reason\nof any transaction pursuant to the authorization and direction of\nsubdivision one or three of this section, provided that such officer,\ninvestment advisor, attorney, accountant or actuary shall, within\nfifteen days after the date on which he is personally served with, or\nreceives actual notice of, any summons, complaint, process, notice,\ndemand, claim or pleading, give notice thereof to such fund or the\nattorney general. Upon such notice the state insurance fund and the\nattorney general shall, if so requested, assume control of the\nrepresentation of such officer or investment advisor, attorney,\naccountant or actuary, in connection with such claim, demand, suit,\naction or proceeding. Each person so represented shall cooperate fully\nwith the fund and the attorney general or any other person designated to\nassume such defense in respect of such representation or defense.\n  b. Notwithstanding any provision of law to the contrary, the state\nshall also save harmless and indemnify the state insurance fund for any\nand all financial loss and expense arising out of or in connection with\nany claim, demand, suit, action, proceeding or judgment rendered\nthereupon against such fund pursuant to subdivision four hereof or by\nreason of any transaction pursuant to the authorization and direction of\nsubdivision one or three of this section, provided that such fund shall,\nwithin fifteen days after the date on which it is served with, or\nreceives actual notice of, any summons, complaint, process, notice,\ndemand, claim or pleading, give notice thereof to the attorney general.\nUpon such notice the attorney general shall assume control of the\nrepresentation of such fund in connection with such claim, demand, suit,\naction or proceeding. The fund shall cooperate fully with the attorney\ngeneral or any other person designated to assume such defense in respect\nof such representation or defense.\n