N.Y. WKC Law § 27-A — New York Code / Act WKC / Article 2 / Section 27-A
Investments in obligations of designated public benefit corporations; indemnifications
Status: in_force

§ 27-a. Investments in obligations of designated public benefit\ncorporations; indemnifications. 1. The aggregate trust fund, and all\nstate officers with responsibility for the custody or investment of such\nfund or of its assets, are authorized and directed to take any and all\nactions necessary or appropriate to cause such fund to make purchases,\nin accordance with a schedule to be established, subject to amendment\nfrom time to time, by the state director of the budget in the aggregate\nprincipal amount of seventy-five million dollars, of obligations of the\nstate of New York and of any one or more of the following public benefit\ncorporations: the New York state housing finance agency, including, but\nnot limited to, obligations secured by second mortgages on housing\nprojects insured by the Federal government or an agency thereof, the New\nYork state medical care facilities finance agency, the dormitory\nauthority and the New York state environmental facilities corporation.\nThe schedule of obligations to be purchased pursuant to this section may\ninclude, but shall not be limited to, short term obligations of the\nhousing finance agency for purposes of proviving a bridge loan for the\nfinancing of housing projects, in anticipation of the receipt of\nproceeds from Federal mortgage insurance on such housing projects or\nsuch other proceeds as may become available. Such schedule may be\namended from time to time to provide for the renewal, refunding,\nredemption or repayment of notes purchased by the aggregate trust fund\nin accordance with the schedule, or for the conversion of such notes\ninto bonds or other long term obligations, provided that at no time\nshall the total aggregate amount of obligations held by the aggregate\ntrust fund pursuant to the provisions of this section exceed\nseventy-five million dollars. The terms and conditions of such\nobligations, including the times of purchase and maturities thereof and\nthe rates of interest thereon, shall be determined by the state\ncomptroller in the case of state obligations or by the public benefit\ncorporation issuing the obligations, provided such terms and obligations\nare found to be fair and reasonable by the state superintendent of\nfinancial services.\n  2. Notwithstanding any general or special provision of law to the\ncontrary, in order to obtain the monies necessary to purchase the\nobligations required by subdivision one of this section, the\ncommissioners of the state insurance fund, in accordance with rules and\nregulations adopted by such commissioners, shall have the right (i) to\nborrow an amount not exceeding the obligation incurred by the aggregate\ntrust fund pursuant to this section, and to pledge as collateral\ntherefor such assets as they may deem advisable, (ii) to sell any fund\nassets under an agreement or option for the repurchase thereof from\nmonies or assets in the fund or (iii) to sell fund assets on such terms\nand conditions as are found to be fair and reasonable by the state\nsuperintendent of financial services.\n  3. It is hereby found and declared that any and all obligations of the\nstate of New York, the New York state housing finance agency, the New\nYork state medical care facilities finance agency, the dormitory\nauthority and the New York state environmental facilities corporation,\nare reasonable, prudent, proper and legal investments for the aggregate\ntrust fund and for all state officers with responsibility for the\ncustody or investment of such fund or of its assets.\n  4. Notwithstanding any other provision of law, no state officer with\nresponsibility for the custody or investment of the aggregate trust 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 two 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 aggregate trust fund.\n  5. a. Notwithstanding any other provision of law, including the\nprovisions of section seventeen of the public officers law, the\naggregate trust fund and the state, jointly and severally, shall save\nharmless and indemnify each and every state officer with responsibility\nfor the custody or investment of such fund or of its assets or for the\napproval of the sale or investment of such assets, and any investment\nadvisor, attorney, accountant or actuary who shall have been employed by\nor who shall have advised such officer, and the state shall save\nharmless and indemnify the aggregate trust fund, from any and all\nfinancial 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, investment advisor, attorney, accountant or\nactuary shall, within five days after the date on which he is personally\nserved with, or receives actual notice of, any summons, complaint,\nprocess, notice, demand, claim or pleading, give notice thereof to such\nfund or the attorney general. Upon such notice the aggregate trust fund\nand the attorney 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 aggregate trust 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