New York Laws
Article 2 - Compensation
27-A - Investments in Obligations of Designated Public Benefit Corporations; Indemnifications.

§ 27-a. Investments in obligations of designated public benefit
corporations; indemnifications. 1. The aggregate trust fund, and all
state officers with responsibility for the custody or investment of such
fund or of its assets, are authorized and directed to take any and all
actions necessary or appropriate to cause such fund to make purchases,
in accordance with a schedule to be established, subject to amendment
from time to time, by the state director of the budget in the aggregate
principal amount of seventy-five million dollars, of obligations of the
state of New York and of any one or more of the following public benefit
corporations: the New York state housing finance agency, including, but
not limited to, obligations secured by second mortgages on housing
projects insured by the Federal government or an agency thereof, the New
York state medical care facilities finance agency, the dormitory
authority and the New York state environmental facilities corporation.
The schedule of obligations to be purchased pursuant to this section may
include, but shall not be limited to, short term obligations of the
housing finance agency for purposes of proviving a bridge loan for the
financing of housing projects, in anticipation of the receipt of
proceeds from Federal mortgage insurance on such housing projects or
such other proceeds as may become available. Such schedule may be
amended from time to time to provide for the renewal, refunding,
redemption or repayment of notes purchased by the aggregate trust fund
in accordance with the schedule, or for the conversion of such notes
into bonds or other long term obligations, provided that at no time
shall the total aggregate amount of obligations held by the aggregate
trust fund pursuant to the provisions of this section exceed
seventy-five million dollars. The terms and conditions of such
obligations, including the times of purchase and maturities thereof and
the rates of interest thereon, shall be determined by the state
comptroller in the case of state obligations or by the public benefit
corporation issuing the obligations, provided such terms and obligations
are found to be fair and reasonable by the state superintendent of
financial services.

2. Notwithstanding any general or special provision of law to the
contrary, in order to obtain the monies necessary to purchase the
obligations required by subdivision one of this section, the
commissioners of the state insurance fund, in accordance with rules and
regulations adopted by such commissioners, shall have the right (i) to
borrow an amount not exceeding the obligation incurred by the aggregate
trust fund pursuant to this section, and to pledge as collateral
therefor such assets as they may deem advisable, (ii) to sell any fund
assets under an agreement or option for the repurchase thereof from
monies or assets in the fund or (iii) to sell fund assets on such terms
and conditions as are found to be fair and reasonable by the state
superintendent of financial services.

3. It is hereby found and declared that any and all obligations of the
state of New York, the New York state housing finance agency, the New
York state medical care facilities finance agency, the dormitory
authority and the New York state environmental facilities corporation,
are reasonable, prudent, proper and legal investments for the aggregate
trust fund and for all state officers with responsibility for the
custody or investment of such fund or of its assets.

4. Notwithstanding any other provision of law, no state officer with
responsibility for the custody or investment of the aggregate trust fund
or of its assets, or for the approval of the sale or investment of such
assets, nor any investment advisor, attorney, accountant or actuary who
shall have been employed by or shall have advised such officer, shall
incur or suffer any liability whatsoever to any person by reason of

actions taken pursuant to the authorization and direction of subdivision
one or two of this section. Any action which could have been brought
against any aforementioned state officer, investment advisor, attorney,
accountant or actuary, except for the provisions of this subdivision,
may be brought against the aggregate trust fund.

5. a. Notwithstanding any other provision of law, including the
provisions of section seventeen of the public officers law, the
aggregate trust fund and the state, jointly and severally, shall save
harmless and indemnify each and every state officer with responsibility
for the custody or investment of such fund or of its assets or for the
approval of the sale or investment of such assets, and any investment
advisor, attorney, accountant or actuary who shall have been employed by
or who shall have advised such officer, and the state shall save
harmless and indemnify the aggregate trust fund, from any and all
financial loss and expense arising out of or in connection with any
claim, demand, suit, action, proceeding or judgment for alleged
negligence, gross negligence, waste or breach of fiduciary duty, or
incapacity of any kind by reason of any transaction pursuant to the
authorization and direction of subdivision one or two of this section,
provided that such officer, investment advisor, attorney, accountant or
actuary shall, within five days after the date on which he is personally
served with, or receives actual notice of, any summons, complaint,
process, notice, demand, claim or pleading, give notice thereof to such
fund or the attorney general. Upon such notice the aggregate trust fund
and the attorney general shall, if so requested, assume control of the
representation of such officer or investment advisor, attorney,
accountant or actuary, in connection with such claim, demand, suit,
action or proceeding. Each person so represented shall cooperate fully
with the fund and the attorney general or any other person designated to
assume such defense in respect of such representation or defense.

b. Notwithstanding any provision of law to the contrary, the state
shall also save harmless and indemnify the aggregate trust fund for any
and all financial loss and expense arising out of or in connection with
any claim, demand, suit, action, proceeding or judgment rendered
thereupon against such fund pursuant to subdivision four hereof,
provided that such fund shall, within five days after the date on which
it is served with, or receives actual notice of, any summons, complaint,
process, notice, demand, claim or pleading, give notice thereof to the
attorney general. Upon such notice the attorney general shall assume
control of the representation of such fund in connection with such
claim, demand, suit, action or proceeding. The fund shall cooperate
fully with the attorney general or any other person designated to assume
such defense in respect of such representation or defense.

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