2023 New York Laws › PBA - Public Authorities › Article 10-D - Miscellaneous Authorities › Title 1 - Nassau County Interim Finance Authority › 3662 - Actions Against the Authority.

§  3662.  Actions  against  the  authority. 1. Except in an action for
wrongful  death,  no  action  or  proceeding  shall  be  prosecuted   or
maintained  against  the authority for personal injury or damage to real
or personal property alleged to have been sustained  by  reason  of  the
negligence or wrongful act of the authority or of any director, officer,
agent  or  employee  thereof,  unless  (a)  it shall appear by and as an
allegation in the complaint or moving papers  that  a  notice  of  claim
shall  have  been  made  and  served upon the authority, within the time
limit prescribed by and  in  compliance  with  section  fifty-e  of  the
general  municipal  law,  (b) it shall appear by and as an allegation in
the complaint or moving papers that at least thirty  days  have  elapsed
since  the service of such notice and that adjustment or payment thereof
has been neglected or refused, and (c) the action or proceeding shall be
commenced within one year after the happening of the  event  upon  which
the  claim  is based. An action against the authority for wrongful death
shall be commenced in accordance with  the  notice  of  claim  and  time
limitation provisions of title eleven of article nine of this chapter.
2.  Wherever  a notice of claim is served upon the authority, it shall
have the right to demand an examination of the claimant relative to  the
occurrence  and  extent  of  the  injuries or damages for which claim is
made, in accordance with  the  provisions  of  section  fifty-h  of  the
general municipal law.
3.  The  authority may require any person presenting for settlement an
account or claim for any cause whatever  against  the  authority  to  be
sworn  before  a  director,  counsel or an attorney, officer or employee
thereof designated for such purpose, concerning such  account  or  claim
and  when  so  sworn,  to answer orally as to any facts relative to such
account or claim. The authority shall have power to settle or adjust any
claims in favor of or against the authority.
4. The rate of interest to be paid by the authority upon any  judgment
for which it is liable, other than a judgment on bonds, shall not exceed
the  maximum  rate  of  interest on judgments and accrued claims against
municipal authorities as provided in the general municipal law. Interest
on payments of principal or interest  on  any  bonds  in  default  shall
accrue  at the rate specified in the general municipal law until paid or
otherwise satisfied.
5. The venue of every  action,  suit  or  special  proceeding  brought
against  the  authority shall be laid in the supreme court in the county
of Nassau.
6. Neither any director of the authority nor any officer, employee, or
agent of the authority, while acting within the  scope  of  his  or  her
authority,  shall  be subject to any liability resulting from exercising
or carrying out any of the powers given in this title.
7. Indemnification. (a) The state shall save  harmless  and  indemnify
directors,   officers  and  employees  of  and  representatives  to  the
authority, all of whom shall be deemed officers  and  employees  of  the
state  for  purposes  of  section  seventeen of the public officers law,
against any claim, demand, suit, or judgment arising by  reason  of  any
act   or  omission  to  act  by  such  director,  officer,  employee  or
representative occurring in the discharge  of  his  or  her  duties  and
within  the  scope  of  his  or  her  service on behalf of the authority
including any claim, demand, suit or judgment based on allegations  that
financial  loss  was  sustained  by  any  person  in connection with the
acquisition, disposition or holding of securities or other  obligations.
In  the  event  of any such claim, demand, suit or judgment, a director,
officer or employee of or representative to the authority shall be saved
harmless and indemnified, notwithstanding the limitations of subdivision
one of section  seventeen  of  the  public  officers  law,  unless  such

individual is found by a final judicial determination not to have acted,
in  good  faith, for a purpose which he or she reasonably believed to be
in the best interest of the authority or  not  to  have  had  reasonable
cause to believe that his or her conduct was lawful.
(b)  In connection with any such claim, demand, suit, or judgment, any
director, officer or employee of  or  representative  to  the  authority
shall  be  entitled  to  representation by private counsel of his or her
choice in any civil judicial proceeding whenever  the  attorney  general
determines  based  upon his or her investigation and review of the facts
and circumstances of  the  case  that  representation  by  the  attorney
general  would  be  inappropriate. The attorney general shall notify the
individual in writing of  such  determination  that  the  individual  is
entitled  to be represented by private counsel. The attorney general may
require, as a condition to payment of the  fees  and  expenses  of  such
representative,   that   appropriate   groups  of  such  individuals  be
represented by  the  same  counsel.  If  the  individual  or  groups  of
individuals  is  entitled to representation by private counsel under the
provisions of this section, the attorney general shall so certify to the
state comptroller. Reasonable attorneys' fees  and  litigation  expenses
shall  be  paid  by  the state to such private counsel from time to time
during the pendency of  the  civil  action  or  proceeding,  subject  to
certification  that  the  individual is entitled to representation under
the terms and conditions of this section  by  the  authority,  upon  the
audit  and  warrant  of  the  state  comptroller. The provisions of this
subdivision  shall  be  in  addition  to  and  shall  not  supplant  any
indemnification or other benefits heretofore or hereafter conferred upon
directors,   officers,  or  employees  of  and  representatives  to  the
authority by section seventeen of the public officers law, by action  of
the  authority  or  otherwise.  The provisions of this subdivision shall
inure only to directors, officers and employees of  and  representatives
to  the authority, shall not enlarge or diminish the rights of any other
party, and shall not impair, limit or modify the rights and  obligations
of any insurer under any policy of insurance.