§ 355-B — Investments in designated obligations; indemnifications

§ 355-b. Investments in designated obligations; indemnifications. 1.\nIt is hereby found and declared that obligations of the state of New\nYork, the New York state housing finance agency and the dormitory\nauthority of the state of New York are reasonable, prudent, proper and\nlegal investments in which all gifts, grants, bequests and devises\nadministered as endowments by the state university trustees may be\ninvested by such trustees or any officer, employee or fiduciary thereof.\nFor the purposes of this section such gifts, grants, bequests and\ndevises shall be referred to as endowment funds.\n 2. Notwithstanding any inconsistent provisions of law, the state\nuniversity trustees may, in their discretion, purchase obligations\ndesignated and found to be reasonable, prudent, proper and legal\ninvestments in subdivision one of this section for such endowment funds\nwithout regard to the percentage of the assets of such endowment funds\ninvested in such obligations and without regard to the percentage of\noutstanding obligations of each issuer held or to be held by such funds.\nThe state university trustees in determining investments for such\nendowment funds in such obligations may consider, in addition to the\nappropriate factors recognized by law, the extent to which such\ninvestments will maintain the credit worthiness of the state of New York\nand the public benefit corporations identified in subdivision one of\nthis section so as to enable the state and such corporations to finance\nthe construction of capital facilities heretofore and hereafter duly\nauthorized for the state university.\n 3. Notwithstanding any other provisions of law, including the\nprovisions of section seventeen of the public officers law, the state\nshall save harmless and indemnify each and every trustee, officer,\nemployee or fiduciary with responsibility for the custody of endowment\nfunds or the assets thereof or for the approval of the sale or\ninvestment of the assets of such endowment funds, and any investment\nadviser, attorney or accountant who shall have been employed by or who\nhave advised such trustee, officer, employee or fiduciary, from any or\nall financial loss arising out of or in connection with any claim,\ndemand, suit, action, proceeding or judgment for alleged negligence,\nwaste or breach of fiduciary duty by reason of any investment by any\nendowment funds in any obligations designated in subdivision one of this\nsection, or resulting from the sale of any assets of any endowment fund\nto obtain sufficient revenues to make such investments, provided that\nsuch trustee, officer, employee, fiduciary, investment adviser, attorney\nor accountant shall, within five days after the date on which he is\npersonally served with, or receives actual notice of, any summons,\ncomplaint, process, notice, demand, claim or pleading, shall give notice\nthereof to the attorney general. Upon such notice, the attorney general\nshall assume control of the representation of such trustee, officer,\nemployee, fiduciary, investment adviser, attorney or accountant in\nconnection with such claim, demand, suit, action or proceeding. Each\nperson so represented shall cooperate fully with the attorney general or\nany other person designated to assume such defense in respect of such\nrepresentation or defense.\n