§ 507. Officers of board; custody of funds. 1. The retirement board
shall elect from its membership a president and vice-president, and
shall have power to employ a secretary and to secure the services of
such technical and administrative employees as may be necessary for the
transaction of the business of the retirement system. The compensation
of all persons engaged by the retirement board and all other expenses of
the board necessary for the proper operation of the retirement system
shall be paid at such rates and in such amounts as the retirement board
shall approve.

2. The retirement board shall appoint a counsel to serve as its legal
adviser.

3. The head of the division of the treasury in the department of
taxation and finance shall be the custodian of the funds of the
retirement system, except any asset consisting of evidence of a loan to
a member of the retirement system pursuant to section five hundred
twelve-b which such asset shall be in the custody of the retirement
board. Disbursements from the funds of the retirement system shall be
made by the custodian or such person as may be authorized by him only
upon warrants signed by a member of the retirement board, or an official
thereof, authorized to do so by resolution of the board duly adopted at
a meeting of the board by a majority of its members. The commissioner of
taxation and finance shall authorize a person who in the absence or
disability of the head of the division of the treasury in the department
of taxation and finance shall exercise and perform the functions, powers
and duties conferred or imposed on the head of the division of the
treasury in the department of taxation and finance as the custodian of
the funds of the retirement system, and such person so authorized shall
continue to exercise and perform such functions, powers and duties
during any period that the office of the head of the division of the
treasury in the department of taxation and finance is vacant.

4. The custodian shall furnish annually to the retirement board a
sworn statement of the amount of the funds in his custody belonging to
the retirement system.

6. The retirement board shall appoint a medical board of three
physicians who shall hold office at the pleasure of the retirement
board. Such medical board shall meet at regular intervals and shall
perform such duties as are assigned to it by the retirement board,
including, but not limited to, a review of applications for disability
retirement and a review of the continued disablement of pensioners
retired for disability. The medical board shall report to the retirement
board its recommendation approving or disapproving each disability
retirement application. The medical board may designate other physicians
to make such medical examinations of a disability applicant as it may
require and shall review the findings of such physicians prior to making
its own recommendation to the retirement board.

7. a. The system shall save harmless and indemnify all members of the
retirement board, officers and employees of the system from financial
loss arising out of any claim, demand, suit or judgment by reason of
alleged negligence or other act by such board member, officer or
employee provided that such board member, officer or employee at the
time of such alleged negligence or act was acting in the discharge of
his duties and within the scope of his employment and that such damages
did not result from the willful and wrongful act or gross negligence of
such board member, officer or employee and provided further that such
board member, officer or employee shall, within five days of the time he
is served with any summons, complaint, process, notice, demand or
pleading, deliver the original or a copy thereof to the system's legal
advisor.

b. Upon such delivery the system's legal advisor may assume control of
the representation of such board member, officer or employee. Such board
member, officer or employee shall cooperate fully with the system's
legal advisor's defense.

c. This section shall not in any way impair, limit or modify the
rights and obligations of any insurer under any policy of insurance.

d. The benefits of this section shall inure only to board members,
officers and employees of the system and shall not enlarge or diminish
the rights of any other party.

8. Notwithstanding the provisions of subdivision seven of this section
and in lieu thereof, the retirement board may, by adoption of a board
regulation, provide for the indemnification and defense by the system of
members of the retirement board and employees of the system in
accordance with section eighteen of the public officers law.