§ 87-H — Investments of the state insurance fund

§ 87-h. Investments of the state insurance fund. 1. The state\ninsurance fund, and all state officers with responsibility for the\ncustody or investment of such fund or of its assets, are authorized to\ntake any and all actions necessary or appropriate to cause such fund to\nmake purchases of the interest of the New York state urban development\ncorporation in certain securities or moneys as described in section\nthree hundred thirty of the chapter of the laws of nineteen hundred\nninety which added this section or its interest in such portion of such\nsecurities or moneys as shall be specified by the director of the\nbudget, for a price equal to the reasonable value of the securities or\nmoneys so purchased; provided that all payments which the fund shall be\nentitled to as buyer of such interest of the New York state urban\ndevelopment corporation in such moneys or securities as provided in such\nchapter shall be secured through credit enhancement provided by an\nenhancer whose credit rating at the time the enhancement arrangement is\nentered into is at least "Aa" or "AA", as the case might be, by a\nnationally recognized rating agency. Such fund is further authorized to\nenter into such transactions with respect to such securities as are\nnecessary to effectuate the purposes of such chapter.\n 2. It is hereby found and declared that any and all such purchases of\nsuch interest in such securities or moneys are reasonable, prudent,\nproper and legal investments for the state insurance fund and for all\nstate officers with responsibility for the custody or investment of such\nfund or of its assets.\n 3. In order to obtain the funds necessary to make the purchases\nauthorized by subdivision one of this section, the state insurance fund,\nand all state officers with responsibility for the custody or investment\nof such fund or of its assets, are authorized to take any and all\nactions necessary or appropriate to cause such fund to sell securities\nowned by the fund or to borrow an amount not exceeding the obligation\nincurred by such fund pursuant to this section and to pledge as\ncollateral therefor such assets, on such terms and conditions as are\nfound to be fair and reasonable by the state superintendent of financial\nservices.\n 4. Notwithstanding any other provision of law, no state officer with\nresponsibility for the custody or investment of the state insurance fund\nor of its assets, or for the approval of the sale or investment of such\nassets, nor any investment advisor, attorney, accountant or actuary who\nshall have been employed by or shall have advised such officer, shall\nincur or suffer any liability whatsoever to any person by reason of\nactions taken pursuant to the authorization of subdivision one or three\nof this section. Any action which could have been brought against any\naforementioned state officer, investment advisor, attorney, accountant\nor actuary, except for the provisions of this subdivision, may be\nbrought against the state insurance fund.\n 5. a. Notwithstanding any other provision of law, including the\nprovisions of section seventeen of the public officers law, the state\ninsurance fund and the state, jointly and severally, shall save harmless\nand indemnify each and every state officer with responsibility for the\ncustody or investment of such fund or of its assets or for the approval\nof the sale or investment of such assets, and any investment advisor,\nattorney, accountant or actuary who shall have been employed by or who\nshall have advised such officer, and the state shall save harmless and\nindemnify the state insurance fund, from any and all financial loss and\nexpense arising out of or in connection with any claim, demand, suit,\naction, proceeding or judgment for alleged negligence, gross negligence,\nwaste or breach of fiduciary duty, or incapacity of any kind by reason\nof any transaction pursuant to the authorization of subdivision one or\nthree of this section, provided that such officer, investment advisor,\nattorney, accountant or actuary shall, within fifteen days after the\ndate on which he is personally served with, or receives actual notice\nof, any summons, complaint, process, notice, demand, claim or pleading,\ngive notice thereof to such fund or the attorney general. Upon such\nnotice the state insurance fund and the attorney general shall, if so\nrequested, assume control of the representation of such officer or\ninvestment advisor, attorney, accountant or actuary, in connection with\nsuch claim, demand, suit, action or proceeding. Each person so\nrepresented shall cooperate fully with the fund and the attorney general\nor any other person designated to assume such defense in respect of such\nrepresentation or defense.\n b. Notwithstanding any provision of law to the contrary, the state\nshall also save harmless and indemnify the state insurance fund for any\nand all financial loss and expense arising out of or in connection with\nany claim, demand, suit, action, proceeding or judgment rendered\nthereupon against such fund pursuant to subdivision four hereof or by\nreason of any transaction pursuant to the authorization of subdivision\none or three of this section, provided that such fund shall, within\nfifteen days after the date on which it is served with, or receives\nactual notice of, any summons, complaint, process, notice, demand, claim\nor pleading, give notice thereof to the attorney general. Upon such\nnotice the attorney general shall assume control of the representation\nof such fund in connection with such claim, demand, suit, action or\nproceeding. The fund shall cooperate fully with the attorney general or\nany other person designated to assume such defense in respect of such\nrepresentation or defense.\n