N.Y. WKC Law § 87-C — New York Code / Act WKC / Article 6 / Section 87-C
Investments in obligations of designated public benefit corporations; indemnifications
Status: in_force

§ 87-c. Investments in obligations of designated public benefit\ncorporations; indemnifications. 1. The state insurance 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 two hundred eighty-three million dollars, of\nobligations of any one or more of the following public benefit\ncorporations: the New York state housing finance agency, the New York\nstate medical care facilities finance agency, the dormitory authority\nand the New York state environmental facilities corporation. Such\nschedule may be amended from time to time to provide for the renewal,\nrefunding, redemption or repayment of notes purchased by the state\ninsurance fund in accordance with the schedule, or for the conversion of\nsuch notes into bonds, provided that at no time shall the total\naggregate amount of obligations held by the state insurance fund\npursuant to the provisions of this section exceed two hundred\neighty-three 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 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. 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 all\nUnited States government securities and all United States government\nagency and instrumentality securities owned by the fund, 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\nNew York state housing finance agency, the New York state medical care\nfacilities finance agency, the dormitory authority and the New York\nstate environmental facilities corporation, are reasonable, prudent,\nproper and legal investments for the state insurance fund and for all\nstate officers with responsibility for the custody or investment of such\nfund or of its assets.\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\nsubdivisions one or two of this section. Any action which could have\nbeen brought against any aforementioned state officer, investment\nadvisor, attorney, accountant or actuary, except for the provisions of\nthis subdivision, may 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\nsubdivisions one or two of this section, provided that such officer,\ninvestment advisor, attorney, accountant or actuary shall, within five\ndays after the date on which he is personally served with, or receives\nactual notice of, any summons, complaint, process, notice, demand, claim\nor pleading, give notice thereof to such fund or the attorney general.\nUpon such notice the state insurance fund and the attorney general\nshall, if so requested, assume control of the representation of such\nofficer or investment advisor, 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