New York Laws
Article 6 - State Insurance Fund.
87-B - Investments in Obligations of the City of Yonkers; Indemnification.

§ 87-b. Investments in obligations of the city of Yonkers;
indemnification. 1. The state insurance fund, and all state officers
with responsibility for the custody or investment thereof, are
authorized and directed to take any and all actions necessary or
appropriate to cause such fund to make purchases as soon as possible,
but in no event later than December first, nineteen hundred
seventy-five, of obligations of the city of Yonkers in the aggregate
principal amount of fifteen million dollars, provided, however, that at
the date of any such purchase the city of Yonkers has not defaulted in
the payment of any of its outstanding bonds or notes. The terms and
conditions of such obligations, including the rates of interest thereon,
shall be determined by the city of Yonkers, after consultation with the
commissioners of the fund, provided such terms and conditions are found
to be fair and reasonable by the state comptroller.

2. It is hereby found and declared that obligations of the city of
Yonkers are reasonable, prudent, proper and legal investments for the
state insurance fund or for any state officer with custody or
responsibility for the investment of the assets thereof.

3. Notwithstanding any other provision of law, including the
provisions of section seventeen of the public officers law, no state
officer with custody or responsibility for the investment of the assets
thereof shall incur or suffer any liability whatsoever to any person
beneficially interested in such system by reason of actions taken
pursuant to the authorization and direction of subdivision one and such
fund shall save harmless and indemnify all such officers and any
investment advisors from financial loss arising out of any claim,
demand, suit, action or judgment for alleged negligence, waste or breach
of fiduciary duty by reason of any investment of any monies of the state
insurance fund in obligations of the city of Yonkers provided that such
person shall, within five days after the date on which he is served with
any summons, complaint, process, notice, demand, claim or pleading,
deliver the original or a true copy thereof to the legal advisor of such
system. Upon such delivery the legal advisor of the state insurance fund
may assume control of the representation of such person in connection
with such claim, demand, suit, action or proceeding. Such person shall
cooperate fully with the legal advisor of the system or any other person
designated to assume such defense in respect of such representation or
defense.

4. In order to obtain the funds necessary to purchase the bonds
required by this chapter, the commissioners of the state insurance fund
in accordance with rules and regulations adopted by such commissioners
shall have the right to borrow an amount not exceeding the obligation
incurred by such fund pursuant to this chapter and to pledge as
collateral therefor such assets as they may deem advisable.