N.Y. WKC Law § 87-D — New York Code / Act WKC / Article 6 / Section 87-D
Contractual obligations as evidence of indebtedness upon reimbursement of reserves
Status: in_force

§ 87-d. Contractual obligations as evidence of indebtedness upon\nreimbursement of reserves. 1. a. Notwithstanding any other provision of\nlaw the contrary, the state insurance fund, hereafter referred to as the\nfund, and all state officers with responsibility for the custody or\ninvestment of such fund or of its assets, are authorized and directed to\ntake any and all actions necessary or appropriate to cause such fund to\nenter into an agreement, renewable on an annual basis, with the\ndepartment of civil service whereunder the state shall make advance\nperiodic payments to the fund for the payment to maturity of all\nobligations under this chapter of the state as employer and the fund as\ninsurer with respect to injuries or deaths resulting from accidents\narising out of and in the course of employment occurring prior to April\nfirst, nineteen hundred eighty-one.\n  b. The agreement shall provide that the fund shall segregate on an\nactuarially sound basis any and all monies and assets held by it as\nreserves for the payment of such obligations of the state under this\nchapter, and pay to the state the aggregate amount thereof.\n  c. The agreement shall further provide that if at any time prior to\nJuly first, nineteen hundred eighty-two, and at any time prior to the\ntermination of any twelve month period immediately succeeding such date\nduring which the agreement, or any renewal, is in effect, an amount\nequal to the total amount in the aggregate determined by the fund to be\nrequired to pay to maturity the obligations referred to in paragraph a\nof this subdivision, has not been appropriated by the state for the\nstate fiscal year commencing April first, nineteen hundred eighty-two,\nor any subsequent fiscal year during which the agreement provided for in\nthis subdivision, or any renewal thereof, is in existence, the\nunliquidated amount of the agreement or the renewal, as computed on an\nactuarially sound basis by the fund, required to pay in the aggregate\nthe remainder of such incurred obligations to maturity, shall be\nimmediately payable by the state to the fund from the funds appropriated\nby the state and encumbered by the agreement or renewal.\n  2. It is hereby found and declared that the agreement provided for in\nsubdivision one of this section is an evidence of indebtedness, and as\nsuch, it shall be deemed an asset of the state insurance fund, and a\nproper and prudent legal undertaking for any state officer with the\nresponsibility for the custody or the investment of the assets of the\nfund, notwithstanding any other provision of law to the contrary.\n  3. 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 execution of and the entering into the\nagreement or any renewals, as required by subdivision one of this\nsection, nor any attorney, accountant or actuary who shall have been\nemployed by or shall have advised such officer, shall incur or suffer\nany liability whatsoever to any person by reason of actions taken\npursuant to the authorization and direction of subdivision one of this\nsection. Any action which could have been brought against any\naforementioned state officer, attorney, accountant or actuary, except\nfor the provisions of this subdivision, may be brought against the state\nof New York.\n  4. 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 execution\nof and the entering into the agreement as required by subdivision one of\nthis section, and any attorney, accountant or actuary who shall have\nbeen employed by or who shall have advised such officer, and the state\nshall save harmless and indemnify the state insurance fund, from any and\nall financial loss and expense arising out of or in connection with any\nclaim, demand, suit, action, proceeding or judgment for alleged\nnegligence, gross negligence, waste or breach of fiduciary duty, or\nincapacity of any kind by reason of any transaction pursuant to the\nauthorization and direction of subdivision one or two of this section,\nprovided that such officer, attorney, accountant or actuary shall,\nwithin five days after the date on which he is personally served with,\nor receives 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 attorney, accountant or actuary in\nconnection with such claim, demand, suit, action or proceeding. Each\nperson so represented shall cooperate fully with the fund and the\nattorney general or any other person designated to assume such defense\nin 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,\nprovided that such fund shall, within five days after the date on which\nit is served with, or receives actual notice of, any summons, complaint,\nprocess, notice, demand, claim or pleading, give notice thereof to the\nattorney general. Upon such notice the attorney general shall assume\ncontrol of the representation of such fund in connection with such\nclaim, demand, suit, action or proceeding. The fund shall cooperate\nfully with the attorney general or any other person designated to assume\nsuch defense in respect of such representation or defense.\n