§ 3020 — Actions against a municipal assistance corporation; indemnification

New York § 3020

• Jurisdiction: New York
• Law PBA: Public Authorities
• Title 2: General Provisions Relating to Municipal Assistance Corporations
• Art. 10: New York State Municipal Assistance Corporation Act

Text

§ 3020. Actions against a municipal assistance corporation;\nindemnification. 1. Except in an action for wrongful death, an action\nagainst a municipal assistance corporation for personal injury or\nproperty damage or founded on tort shall not be commenced more than one\nyear and ninety days after the cause of action shall have accrued nor\nunless a notice of claim shall have been served on a director of such\ncorporation, or an officer or employee thereof designated by the\ncorporation for such purpose, within the time limited by, and in\ncompliance with the requirements of section fifty-e of the general\nmunicipal law. An action against a municipal assistance corporation for\nwrongful death shall be commenced in accordance with the notice of claim\nand time limitation provisions of title eleven of article nine of this\nchapter.\n 2. The venue of every action, suit or special proceeding brought\nagainst a corporation shall be laid in the county in which the principal\noffice of such corporation is located.\n 3. a. The state shall save harmless and indemnify directors, officers\nand employees of and representatives to a corporation, all of whom shall\nbe deemed officers and employees of the state for purposes of section\nseventeen of the public officers law, against any claim, demand, suit,\nor judgment arising by reason of any act or omission to act by such\ndirector, officer, employee or representative occurring in the discharge\nof his duties and within the scope of his service on behalf of such\ncorporation, including any claim, demand, suit or judgment based on\nallegations that financial loss was sustained by any person in\nconnection with the acquisition, disposition or holding of securities or\nother obligations of a corporation (or those of any other public\ncorporation if such loss allegedly resulted from its dealing with a\nmunicipal assistance corporation). In the event of any such claim,\ndemand, suit or judgment, a director, officer or employee of or\nrepresentative to a municipal assistance corporation shall be saved\nharmless and indemnified, notwithstanding the limitations of section\nseventeen of the public officers law, unless such individual is found by\na final judicial determination not to have acted, in good faith, for a\npurpose which he reasonably believed to be in the best interest of such\ncorporation or not to have had reasonable cause to believe that his\nconduct was lawful.\n b. In connection with any such claim, demand, suit, or judgment, any\ndirector, officer or employee of or representative to the corporation\nshall be entitled to representation by private counsel of his choice in\nany civil judicial proceeding whenever the attorney general determines\nbased upon his investigation and review of the facts and circumstances\nof the case that representation by the attorney general would be\ninappropriate. The attorney general shall notify the individual in\nwriting of such determination that the individual is entitled to be\nrepresented by private counsel. The attorney general may require, as a\ncondition to payment of the fees and expenses of such representation,\nthat appropriate groups of such individuals be represented by the same\ncounsel. If the individual or group of individuals is entitled to\nrepresentation by private counsel under the provisions of this section,\nthe attorney general shall so certify to the comptroller. Reasonable\nattorney's fees and litigation expenses shall be paid by the state to\nsuch private counsel from time to time during the pendency of the civil\naction or proceeding subject to certification that the individual is\nentitled to representation under the terms and conditions of this\nsection by the chairman of the board of directors of the corporation\nupon the audit and warrant of the comptroller. The provisions of this\nsubdivision shall be in addition to and shall not supplant any\nindemnification or other benefits heretofore or hereafter conferred upon\ndirectors, officers or employees of and representatives to the\ncorporation by section seventeen of the public officers law, by action\nof the corporation, or otherwise. The provisions of this subdivision\nshall inure only to directors, officers and employees of and\nrepresentatives to the corporation, shall not enlarge or diminish the\nrights of any other party, and shall not impair, limit or modify the\nrights and obligations of any insurer under any policy of insurance.\n