§ 355-b. Investments in designated obligations; indemnifications. 1.
It is hereby found and declared that obligations of the state of New
York, the New York state housing finance agency and the dormitory
authority of the state of New York are reasonable, prudent, proper and
legal investments in which all gifts, grants, bequests and devises
administered as endowments by the state university trustees may be
invested by such trustees or any officer, employee or fiduciary thereof.
For the purposes of this section such gifts, grants, bequests and
devises shall be referred to as endowment funds.

2. Notwithstanding any inconsistent provisions of law, the state
university trustees may, in their discretion, purchase obligations
designated and found to be reasonable, prudent, proper and legal
investments in subdivision one of this section for such endowment funds
without regard to the percentage of the assets of such endowment funds
invested in such obligations and without regard to the percentage of
outstanding obligations of each issuer held or to be held by such funds.
The state university trustees in determining investments for such
endowment funds in such obligations may consider, in addition to the
appropriate factors recognized by law, the extent to which such
investments will maintain the credit worthiness of the state of New York
and the public benefit corporations identified in subdivision one of
this section so as to enable the state and such corporations to finance
the construction of capital facilities heretofore and hereafter duly
authorized for the state university.

3. Notwithstanding any other provisions of law, including the
provisions of section seventeen of the public officers law, the state
shall save harmless and indemnify each and every trustee, officer,
employee or fiduciary with responsibility for the custody of endowment
funds or the assets thereof or for the approval of the sale or
investment of the assets of such endowment funds, and any investment
adviser, attorney or accountant who shall have been employed by or who
have advised such trustee, officer, employee or fiduciary, from any or
all financial loss arising out of or in connection with any claim,
demand, suit, action, proceeding or judgment for alleged negligence,
waste or breach of fiduciary duty by reason of any investment by any
endowment funds in any obligations designated in subdivision one of this
section, or resulting from the sale of any assets of any endowment fund
to obtain sufficient revenues to make such investments, provided that
such trustee, officer, employee, fiduciary, investment adviser, attorney
or accountant shall, within five days after the date on which he is
personally served with, or receives actual notice of, any summons,
complaint, process, notice, demand, claim or pleading, shall give notice
thereof to the attorney general. Upon such notice, the attorney general
shall assume control of the representation of such trustee, officer,
employee, fiduciary, investment adviser, attorney or accountant in
connection with such claim, demand, suit, action or proceeding. Each
person so represented shall cooperate fully with the attorney general or
any other person designated to assume such defense in respect of such
representation or defense.