§ 3662. Actions against the authority. 1. Except in an action for
wrongful death, no action or proceeding shall be prosecuted or
maintained against the authority for personal injury or damage to real
or personal property alleged to have been sustained by reason of the
negligence or wrongful act of the authority or of any director, officer,
agent or employee thereof, unless (a) it shall appear by and as an
allegation in the complaint or moving papers that a notice of claim
shall have been made and served upon the authority, within the time
limit prescribed 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, and (c) the action or proceeding shall be
commenced within one year after the happening of the event upon which
the claim is based. An action against the authority 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. Wherever a notice of claim is served upon the authority, 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 authority may require any person presenting for settlement an
account or claim for any cause whatever against the authority to be
sworn before a director, counsel or an attorney, officer or employee
thereof 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 authority shall have power to settle or adjust any
claims in favor of or against the authority.

4. The rate of interest to be paid by the authority upon any judgment
for which it is liable, other than a judgment on bonds, shall not exceed
the maximum rate of interest on judgments and accrued claims against
municipal authorities as provided in the general municipal law. Interest
on payments of principal or interest on any bonds in default shall
accrue at the rate specified in the general municipal law until paid or
otherwise satisfied.

5. The venue of every action, suit or special proceeding brought
against the authority shall be laid in the supreme court in the county
of Nassau.

6. Neither any director of the authority nor any officer, employee, or
agent of the authority, while acting within the scope of his or her
authority, shall be subject to any liability resulting from exercising
or carrying out any of the powers given in this title.

7. Indemnification. (a) The state shall save harmless and indemnify
directors, officers and employees of and representatives to the
authority, all of whom shall be deemed officers and employees of the
state for purposes of section seventeen of the public officers law,
against any claim, demand, suit, or judgment arising by reason of any
act or omission to act by such director, officer, employee or
representative occurring in the discharge of his or her duties and
within the scope of his or her service on behalf of the authority
including any claim, demand, suit or judgment based on allegations that
financial loss was sustained by any person in connection with the
acquisition, disposition or holding of securities or other obligations.
In the event of any such claim, demand, suit or judgment, a director,
officer or employee of or representative to the authority shall be saved
harmless and indemnified, notwithstanding the limitations of subdivision
one of section seventeen of the public officers law, unless such
individual is found by a final judicial determination not to have acted,
in good faith, for a purpose which he or she reasonably believed to be
in the best interest of the authority or not to have had reasonable
cause to believe that his or her conduct was lawful.

(b) In connection with any such claim, demand, suit, or judgment, any
director, officer or employee of or representative to the authority
shall be entitled to representation by private counsel of his or her
choice in any civil judicial proceeding whenever the attorney general
determines based upon his or her investigation and review of the facts
and circumstances of the case that representation by the attorney
general would be inappropriate. The attorney general shall notify the
individual in writing of such determination that the individual is
entitled to be represented by private counsel. The attorney general may
require, as a condition to payment of the fees and expenses of such
representative, that appropriate groups of such individuals be
represented by the same counsel. If the individual or groups of
individuals is entitled to representation by private counsel under the
provisions of this section, the attorney general shall so certify to the
state comptroller. Reasonable attorneys' fees and litigation expenses
shall be paid by the state to such private counsel from time to time
during the pendency of the civil action or proceeding, subject to
certification that the individual is entitled to representation under
the terms and conditions of this section by the authority, upon the
audit and warrant of the state comptroller. The provisions of this
subdivision shall be in addition to and shall not supplant any
indemnification or other benefits heretofore or hereafter conferred upon
directors, officers, or employees of and representatives to the
authority by section seventeen of the public officers law, by action of
the authority or otherwise. The provisions of this subdivision shall
inure only to directors, officers and employees of and representatives
to the authority, shall not enlarge or diminish the rights of any other
party, and shall not impair, limit or modify the rights and obligations
of any insurer under any policy of insurance.