§ 3970. Actions against the authority. 1. Except in an action for\nwrongful death, no action or proceeding shall be prosecuted or\nmaintained against the authority for personal injury or damage to real\nor personal property alleged to have been sustained by reason of the\nnegligence or wrongful act of the authority or of any director, officer,\nagent or employee thereof, unless:
(a)it shall appear by and as an\nallegation in the complaint or moving papers that a notice of claim\nshall have been made and served upon the authority, within the time\nlimit prescribed by and in compliance with section fifty-e of the\ngeneral municipal law;
(b)it shall appear by and as an allegation in\nthe complaint or moving papers that at least thirty days have elapsed\nsince the service of such notice an
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§ 3970. Actions against the authority. 1. Except in an action for\nwrongful death, no action or proceeding shall be prosecuted or\nmaintained against the authority for personal injury or damage to real\nor personal property alleged to have been sustained by reason of the\nnegligence or wrongful act of the authority or of any director, officer,\nagent or employee thereof, unless: (a) it shall appear by and as an\nallegation in the complaint or moving papers that a notice of claim\nshall have been made and served upon the authority, within the time\nlimit prescribed by and in compliance with section fifty-e of the\ngeneral municipal law; (b) it shall appear by and as an allegation in\nthe complaint or moving papers that at least thirty days have elapsed\nsince the service of such notice and that adjustment or payment thereof\nhas been neglected or refused; and (c) the action or proceeding shall be\ncommenced within one year after the happening of the event upon which\nthe claim is based. An action against the authority for wrongful death\nshall be commenced in accordance with the notice of claim and time\nlimitation provisions of title eleven of article nine of this chapter.\n 2. Wherever a notice of claim is served upon the authority, it shall\nhave the right to demand an examination of the claimant relative to the\noccurrence and extent of the injuries or damages for which claim is\nmade, in accordance with the provisions of section fifty-h of the\ngeneral municipal law.\n 3. The authority may require any person presenting for settlement an\naccount or claim for any cause whatever against the authority to be\nsworn before a director, counsel or an attorney, officer or employee\nthereof designated for such purpose, concerning such account or claim\nand when so sworn, to answer orally as to any facts relative to such\naccount or claim. The authority shall have power to settle or adjust any\nclaims in favor of or against the authority.\n 4. The rate of interest to be paid by the authority upon any judgment\nfor which it is liable, other than a judgment on bonds, notes or other\nobligations, shall not exceed the maximum rate of interest on judgments\nand accrued claims against municipal authorities as provided in the\ngeneral municipal law. Interest on payments of principal or interest on\nany bonds, notes or other obligations in default shall accrue at the\nrate specified in the general municipal law until paid or otherwise\nsatisfied.\n 5. The venue of every action, suit or special proceeding brought\nagainst the authority shall be the supreme court in the county.\n 6. Neither any director of the authority nor any officer, employee, or\nagent of the authority, while acting within the scope of his or her\nauthority, shall be subject to any liability resulting from exercising\nor carrying out any of the powers given in this title.\n 7. (a) The state shall hold harmless and indemnify directors, officers\nand employees of the authority, all of whom shall be deemed officers and\nemployees of the state for purposes of section seventeen of the public\nofficers law, against any claim, demand, suit, or judgment arising by\nreason of any act or omission to act by such director, officer, or\nemployee occurring in the discharge of his or her duties and within the\nscope of his or her service on behalf of the authority including any\nclaim, demand, suit or judgment based on allegations that financial loss\nwas sustained by any person in connection with the acquisition,\ndisposition or holding of securities or other obligations. In the event\nof any such claim, demand, suit or judgment, a director, officer or\nemployee of the authority shall be held harmless and indemnified,\nnotwithstanding the limitations of subdivision one of section seventeen\nof the public officers law, unless such individual is found by a final\njudicial determination not to have acted, in good faith, for a purpose\nwhich he or she reasonably believed to be in the best interest of the\nauthority or not to have had reasonable cause to believe that his or her\nconduct was lawful.\n (b) In connection with any such claim, demand, suit, or judgment, any\ndirector, officer or employee of the authority shall be entitled to\nrepresentation by private counsel of his or her choice in any civil\njudicial proceeding whenever the attorney general determines based upon\nhis or her investigation and review of the facts and circumstances of\nthe 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 representative,\nthat appropriate groups of such individuals be represented by the same\ncounsel. If the individual or groups of individuals are entitled to\nrepresentation by private counsel under the provisions of this section,\nthe attorney general shall so certify to the state comptroller.\nReasonable attorneys' fees and litigation expenses shall be paid by the\nstate to such private counsel from time to time during the pendency of\nthe civil action or proceeding, subject to certification that the\nindividual is entitled to representation under the terms and conditions\nof this section by the authority, upon the audit and warrant of the\nstate comptroller. The provisions of this subdivision shall be in\naddition to and shall not supplant any indemnification or other benefits\nheretofore or hereafter conferred upon directors, officers, or employees\nof and representatives to the authority by section seventeen of the\npublic officers law, by action of the authority or otherwise. The\nprovisions of this subdivision shall inure only to directors, officers\nand employees of the authority, shall not enlarge or diminish the rights\nof any other party, and shall not impair, limit or modify the rights and\nobligations of any insurer under any policy of insurance.\n