§ 3316. Actions against corporation. 1. Except in an action for
wrongful death, no action or special proceeding shall be prosecuted or
maintained against the corporation, its members, officers or employees
for personal injury or damage to real or personal property alleged to
have been sustained by reason of the negligence, tort or wrongful act of
the corporation or of any member, officer, agent or employee thereof,
unless (a) notice of claim shall have been made and served upon the
corporation within the time limit set by and in compliance with section
fifty-e of the general municipal law, (b) it shall appear by and as an
allegation in the complaint or moving papers that at least thirty days
have elapsed since the service of such notice and that adjustment or
payment thereof has been neglected or refused, (c) the action or special
proceeding shall be commenced within one year and ninety days after the
happening of the event upon which the claim is based, and (d) an action,
against the corporation for wrongful death shall be commenced in
accordance with the notice of claim and time limitation provisions of
title eleven of article nine of this chapter.

2. Whenever a notice of claim is served upon the corporation, it shall
have the right to demand an examination of the claimant relative to the
occurrence and extent of the injuries or damages for which claim is
made, in accordance with the provisions of section fifty-h of the
general municipal law.

3. The corporation may require any person presenting for settlement an
account or claim for any cause whatsoever against the corporation to be
sworn before a director, counsel or an attorney, officer or employee of
the corporation designated for such purpose, concerning such account or
claim and, when so sworn, to answer orally as to any facts relative to
such account or claim. The corporation shall have power to settle or
adjust all claims in favor of or against the corporation.

4. Any action or proceeding to which the corporation or the people of
the state may be parties, in which any question arises as to the
validity of this title, shall be preferred over all other civil causes
of action or cases, except election causes of action or cases, in all
courts of the state and shall be heard and determined in preference to
all other civil business pending therein except election causes,
irrespective of position on the calendar. The same performance shall be
granted upon application of the corporation or its counsel in any action
or proceeding questioning the validity of this title in which the
corporation may be allowed to intervene. The venue of any such action or
proceeding shall be laid in the supreme court of the county.

5. The rate of interest to be paid by the corporation upon any
judgment for which it is liable, other than a judgment on its bonds,
shall be the rate prescribed by section five thousand four of the civil
practice law and rules. Interest on payments of principal or interest on
any bonds in default shall accrue at the rate borne by such bonds from
the due date thereof until paid or otherwise satisfied.

6. All actions or proceedings against the corporation of whatever
nature shall be brought in the county.