2023 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.