N.Y. REL Law § 27

§ 27. Indemnification of directors and officers by a court. (a)\nNotwithstanding the failure of a cooperative to provide indemnification,\nand despite any contrary resolution of the board or of the members in\nthe specific case under section twenty-six of this article,\nindemnification shall be awarded by a court to the extent authorized\nunder section twenty-five of this article, and subdivision (a) of\nsection twenty-six of this article. Application therefor may be made, in\nevery case, either:\n (1) in the civil action or proceeding in which the expenses were\nincurred or other amounts were paid, or\n (2) to the supreme court in a separate proceeding, in which case the\napplication shall set forth the disposition of any previous application\nmade to any court for the same or similar relief and also reasonable\ncause for the failure to make application for such relief in the action\nor proceeding in which the expenses were incurred or other amounts were\npaid.\n (b) The application shall be made in such manner and form as may be\nrequired by the applicable rules of court or, in the absence thereof, by\ndirection of a court to which it is made. Such application shall be\nupon notice to the corporation. The court may also direct that notice be\ngiven at the expense of the cooperative to the members and such other\npersons as it may designate in such manner as it may require.\n (c) Where indemnification is sought by judicial action, the court may\nallow a person such reasonable expenses, including attorneys' fees,\nduring the pendency of the litigation as are necessary in connection\nwith his or her defense therein, if the court shall find that the\ndefendant has by his or her pleadings or during the course of the\nlitigation raised genuine issues of fact or law.\n