§ 6209 — Investments in designated obligations; indemnification

New York § 6209

• Jurisdiction: New York
• Law EDN: Education
• Title 7: State and City Colleges and Institutions-cornell University
• Art. 125: City University of New York

Text

§ 6209. Investments in designated obligations; indemnification. 1.\nIt is hereby found and declared that obligations of the dormitory\nauthority of the state of New York are reasonable, prudent, proper and\nlegal investments in which all gifts, grants, bequests, devises, trusts,\nmoney, endowments, fees, and other income not derived from public\ntaxation or the public credit, received and administered or to be\nreceived and administered by the board of trustees or any of its\neducational units for college or university purposes in connection with\nthe units under the control of the board of trustees pursuant to\nsubdivision six of section sixty-two hundred six of this article may be\ninvested or may be pledged, hypothecated or delivered as collateral to\nsecure in whole or in part the payment of principal or interest of any\nobligation of the dormitory authority of the state of New York by the\nboard of trustees or any officer, employee or fiduciary thereof upon\nsuch terms and conditions as may be acceptable to the board of trustees.\nIt is hereby found and declared that obligations of the dormitory\nauthority of the state of New York are reasonable, prudent, proper and\nlegal investments in which funds presently in existence or hereafter\ncreated or established or other moneys administered by any alumni\ncorporation or college fund organized pursuant to the not-for-profit\ncorporation law or this chapter to encourage the educational mission or\nassist any educational unit of the city university may be invested or\nmay be pledged, hypothecated or delivered as collateral to secure in\nwhole or in part the payment of principal or interest of any obligation\nof the dormitory authority of the state of New York by such corporation\nor fund or any officer, trustee, director, employee or fiduciary thereof\nupon such terms and conditions as may be acceptable to such corporation,\nperson or persons. For the purpose of this section, such gifts, grants,\nbequests, devises, trusts, money, endowments, fees, funds, and other\nincome shall be referred to as endowment funds.\n 2. Notwithstanding any inconsistent provision of law, the board of\ntrustees or the directors or trustees of any such alumni corporation or\ncollege fund may in its or their discretion purchase and retain\nobligations or may pledge, hypothecate, or deliver as collateral\nendowment funds to secure in whole or in part the payment of principal\nor interest on obligations of the dormitory authority of the state of\nNew York without regard to the percentage of the assets of such\nendowment funds invested in such obligations or pledged, hypothecated,\nor delivered as collateral to secure in whole or in part the payment of\nprincipal or interest on such obligations, and without regard to the\npercentage of outstanding obligations of the issuer held or to be held\nby such funds or secured by pledge, hypothecation, or delivery as\ncollateral of such funds. The board of trustees or such alumni\ncorporation or college fund may consider, in addition to the appropriate\nfactors recognized by law, the extent to which such investments,\npledges, hypothecations, or deliveries as collateral, will maintain the\ncredit worthiness of the state of New York and the dormitory authority\nof the state of New York so as to enable the state and such corporation\nto finance the construction of capital facilities heretofore or\nhereafter duly authorized for the city university.\n 3. Notwithstanding any other provision of law, the state shall, with\nrespect to the board of trustees, save and hold harmless and indemnify\neach and every member, trustee, director, officer, employee or fiduciary\nwith responsibility for the custody of funds or the assets thereof or\nfor the approval of the sale, investment, pledge, hypothecation, or\ndelivery as collateral of the assets of such funds, and any investment\nadvisor, attorney or accountant who shall have been employed by or who\nhas advised such member, trustee, director, officer, employee, or\nfiduciary, from any or all financial loss arising out of or in\nconnection with any claim, demand, suit, action, proceeding or judgment\nfor alleged negligence, waste, or breach of fiduciary duty by reason of\nany investment of any funds in, or the pledge, hypothecation, or\ndelivery as collateral of any endowment funds to secure in whole or in\npart the payment of principal or interest of any obligation of the\ndormitory authority of the state of New York, or resulting from the sale\nof any assets of any funds to obtain sufficient revenues to make such\ninvestments, pledges, hypothecations, or deliveries as collateral,\nprovided that such member, trustee, director, officer, employee,\nfiduciary, investment advisor, attorney, or accountant within five days\nafter the date on which he or she is personally served with, or receives\nactual notice of, any summons, complaint, process, notice, demand, claim\nor pleading, shall give notice thereof to the attorney general. Upon\nsuch notice, the attorney general shall assume control of the\nrepresentation of such member, trustee, director, officer, employee,\nfiduciary, investment advisor, attorney or accountant in connection with\nsuch claim, demand, suit, action or proceeding. Each person so\nrepresented shall cooperate fully with the attorney general or any other\nperson designated to assume such defense in respect to such\nrepresentation or defense.\n