N.Y. WKC Law § 87-A

§ 87-a. Investment in obligations of the municipal assistance\ncorporation for the city of New York; indemnification. 1. The state\ninsurance fund, and all state officers with responsibility for the\ncustody or investment thereof, are authorized and directed to take any\nand all actions necessary or appropriate to cause such fund to make\npurchases as soon as possible, in accordance with a schedule to be\nestablished by the New York state emergency financial control board, but\nin no event later than December first, nineteen hundred seventy-five, of\nbonds of the municipal assistance corporation for the city of New York\nin the aggregate principal amount of one hundred million dollars,\nprovided, however, that at the date of any such purchase the city of New\nYork has not defaulted in the payment of any of its outstanding bonds or\nnotes. The terms and conditions of such bonds, including the rates of\ninterest thereon, shall be determined by the municipal assistance\ncorporation for the city of New York, after consultation with the\ncommissioners of the fund, provided such terms and conditions are found\nto be fair and reasonable by the New York state emergency financial\ncontrol board.\n 2. It is hereby found and declared that obligations of the municipal\nassistance corporation for the city of New York are reasonable, prudent,\nproper and legal investments for the state insurance fund or for any\nstate officer with custody or responsibility for the investment of the\nassets thereof.\n 3. Notwithstanding any other provision of law, including the\nprovisions of section seventeen of the public officers law, no state\nofficer with custody or responsibility for the investment of the assets\nthereof shall incur or suffer any liability whatsoever to any person\nbeneficially interested in such system by reason of actions taken\npursuant to the authorization and direction of subdivision one and such\nfund shall save harmless and indemnify all such officers and any\ninvestment advisors from financial loss arising out of any claim,\ndemand, suit, action or judgment for alleged negligence, waste or breach\nof fiduciary duty by reason of any investment of any monies of the state\ninsurance fund in obligations of the municipal assistance corporation\nfor the city of New York provided that such person shall, within five\ndays after the date on which he is served with any summons, complaint,\nprocess, notice, demand, claim or pleading, deliver the original or a\ntrue copy thereof to the legal advisor of such system. Upon such\ndelivery the legal advisor of the state insurance fund may assume\ncontrol of the representation of such person in connection with such\nclaim, demand, suit, action or proceeding. Such person shall cooperate\nfully with the legal advisor of the system or any other person\ndesignated to assume such defense in respect of such representation or\ndefense.\n 4. In order to obtain the funds necessary to purchase the bonds\nrequired by this chapter, the commissioners of the state insurance fund\nin accordance with rules and regulations adopted by such commissioners\nshall have the right to borrow an amount not exceeding the obligation\nincurred by such fund pursuant to this chapter and to pledge as\ncollateral therefor such assets as they may deem advisable.\n