NY Educ L § 6209 (2021)
2021 New York Laws EDN - Education Title 7 - State and City Colleges and Institutions-Cornell University Article 125 - City University of New York 6209 - Investments in Designated Obligations; Indemnification.

§ 6209. Investments  in  designated obligations; indemnification.   1.   It is hereby found  and  declared  that  obligations  of  the  dormitory   authority  of  the state of New York are reasonable, prudent, proper and   legal investments in which all gifts, grants, bequests, devises, trusts,   money, endowments, fees,  and  other  income  not  derived  from  public   taxation  or  the  public  credit,  received  and  administered or to be   received and administered by  the  board  of  trustees  or  any  of  its   educational  units for college or university purposes in connection with   the units under the  control  of  the  board  of  trustees  pursuant  to   subdivision  six of section sixty-two hundred six of this article may be   invested or may be pledged, hypothecated or delivered as  collateral  to   secure  in  whole or in part the payment of principal or interest of any   obligation of the dormitory authority of the state of New  York  by  the   board  of  trustees  or  any officer, employee or fiduciary thereof upon   such terms and conditions as may be acceptable to the board of trustees.   It is hereby found  and  declared  that  obligations  of  the  dormitory   authority  of  the state of New York are reasonable, prudent, proper and   legal investments in which funds presently  in  existence  or  hereafter   created  or  established  or  other  moneys  administered  by any alumni   corporation or college fund organized  pursuant  to  the  not-for-profit   corporation  law or this chapter to encourage the educational mission or   assist any educational unit of the city university may  be  invested  or   may  be  pledged,  hypothecated  or delivered as collateral to secure in   whole or in part the payment of principal or interest of any  obligation   of  the dormitory authority of the state of New York by such corporation   or fund or any officer, trustee, director, employee or fiduciary thereof   upon such terms and conditions as may be acceptable to such corporation,   person or persons. For the purpose of this section, such gifts,  grants,   bequests,  devises,  trusts,  money,  endowments, fees, funds, and other   income shall be referred to as endowment funds.2. Notwithstanding any inconsistent provision of  law,  the  board  of   trustees  or the directors or trustees of any such alumni corporation or   college fund  may  in  its  or  their  discretion  purchase  and  retain   obligations  or  may  pledge,  hypothecate,  or  deliver  as  collateral   endowment funds to secure in whole or in part the payment  of  principal   or  interest  on  obligations of the dormitory authority of the state of   New York without  regard  to  the  percentage  of  the  assets  of  such   endowment  funds  invested in such obligations or pledged, hypothecated,   or delivered as collateral to secure in whole or in part the payment  of   principal  or  interest  on  such obligations, and without regard to the   percentage of outstanding obligations of the issuer held or to  be  held   by  such  funds  or  secured  by  pledge,  hypothecation, or delivery as   collateral  of  such  funds.  The  board  of  trustees  or  such  alumni   corporation or college fund may consider, in addition to the appropriate   factors  recognized  by  law,  the  extent  to  which  such investments,   pledges, hypothecations, or deliveries as collateral, will maintain  the   credit  worthiness  of the state of New York and the dormitory authority   of the state of New York so as to enable the state and such  corporation   to   finance  the  construction  of  capital  facilities  heretofore  or   hereafter duly authorized for the city university.3. Notwithstanding any other provision of law, the state  shall,  with   respect  to  the board of trustees, save and hold harmless and indemnify   each and every member, trustee, director, officer, employee or fiduciary   with responsibility for the custody of funds or the  assets  thereof  or   for  the  approval  of  the  sale, investment, pledge, hypothecation, or   delivery as collateral of the assets of such funds, and  any  investment   advisor,  attorney  or accountant who shall have been employed by or who   has advised  such  member,  trustee,  director,  officer,  employee,  or    fiduciary,  from  any  or  all  financial  loss  arising  out  of  or in   connection with any claim, demand, suit, action, proceeding or  judgment   for  alleged negligence, waste, or breach of fiduciary duty by reason of   any  investment  of  any  funds  in,  or  the  pledge, hypothecation, or   delivery as collateral of any endowment funds to secure in whole  or  in   part  the  payment  of  principal  or  interest of any obligation of the   dormitory authority of the state of New York, or resulting from the sale   of any assets of any funds to obtain sufficient revenues  to  make  such   investments,  pledges,  hypothecations,  or  deliveries  as  collateral,   provided  that  such  member,  trustee,  director,  officer,   employee,   fiduciary,  investment advisor, attorney, or accountant within five days   after the date on which he or she is personally served with, or receives   actual notice of, any summons, complaint, process, notice, demand, claim   or pleading, shall give notice thereof to  the  attorney  general.  Upon   such   notice,   the  attorney  general  shall  assume  control  of  the   representation of such member,  trustee,  director,  officer,  employee,   fiduciary, investment advisor, attorney or accountant in connection with   such   claim,  demand,  suit,  action  or  proceeding.  Each  person  so   represented shall cooperate fully with the attorney general or any other   person  designated  to  assume  such  defense   in   respect   to   such   representation or defense.