§ 6209. Investments in designated obligations; indemnification. 1.
It is hereby found and declared that obligations of the dormitory
authority of the state of New York are reasonable, prudent, proper and
legal investments in which all gifts, grants, bequests, devises, trusts,
money, endowments, fees, and other income not derived from public
taxation or the public credit, received and administered or to be
received and administered by the board of trustees or any of its
educational units for college or university purposes in connection with
the units under the control of the board of trustees pursuant to
subdivision six of section sixty-two hundred six of this article may be
invested or may be pledged, hypothecated or delivered as collateral to
secure in whole or in part the payment of principal or interest of any
obligation of the dormitory authority of the state of New York by the
board of trustees or any officer, employee or fiduciary thereof upon
such terms and conditions as may be acceptable to the board of trustees.
It is hereby found and declared that obligations of the dormitory
authority of the state of New York are reasonable, prudent, proper and
legal investments in which funds presently in existence or hereafter
created or established or other moneys administered by any alumni
corporation or college fund organized pursuant to the not-for-profit
corporation law or this chapter to encourage the educational mission or
assist any educational unit of the city university may be invested or
may be pledged, hypothecated or delivered as collateral to secure in
whole or in part the payment of principal or interest of any obligation
of the dormitory authority of the state of New York by such corporation
or fund or any officer, trustee, director, employee or fiduciary thereof
upon such terms and conditions as may be acceptable to such corporation,
person or persons. For the purpose of this section, such gifts, grants,
bequests, devises, trusts, money, endowments, fees, funds, and other
income shall be referred to as endowment funds.

2. Notwithstanding any inconsistent provision of law, the board of
trustees or the directors or trustees of any such alumni corporation or
college fund may in its or their discretion purchase and retain
obligations or may pledge, hypothecate, or deliver as collateral
endowment funds to secure in whole or in part the payment of principal
or interest on obligations of the dormitory authority of the state of
New York without regard to the percentage of the assets of such
endowment funds invested in such obligations or pledged, hypothecated,
or delivered as collateral to secure in whole or in part the payment of
principal or interest on such obligations, and without regard to the
percentage of outstanding obligations of the issuer held or to be held
by such funds or secured by pledge, hypothecation, or delivery as
collateral of such funds. The board of trustees or such alumni
corporation or college fund may consider, in addition to the appropriate
factors recognized by law, the extent to which such investments,
pledges, hypothecations, or deliveries as collateral, will maintain the
credit worthiness of the state of New York and the dormitory authority
of the state of New York so as to enable the state and such corporation
to finance the construction of capital facilities heretofore or
hereafter duly authorized for the city university.

3. Notwithstanding any other provision of law, the state shall, with
respect to the board of trustees, save and hold harmless and indemnify
each and every member, trustee, director, officer, employee or fiduciary
with responsibility for the custody of funds or the assets thereof or
for the approval of the sale, investment, pledge, hypothecation, or
delivery as collateral of the assets of such funds, and any investment
advisor, attorney or accountant who shall have been employed by or who
has advised such member, trustee, director, 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 of any funds in, or the pledge, hypothecation, or
delivery as collateral of any endowment funds to secure in whole or in
part the payment of principal or interest of any obligation of the
dormitory authority of the state of New York, or resulting from the sale
of any assets of any funds to obtain sufficient revenues to make such
investments, pledges, hypothecations, or deliveries as collateral,
provided that such member, trustee, director, officer, employee,
fiduciary, investment advisor, attorney, or accountant within five days
after the date on which he or she 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 member, trustee, director, officer, employee,
fiduciary, investment advisor, 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 to such
representation or defense.