§ 87-c. Investments in obligations of designated public benefit
corporations; indemnifications. 1. The state insurance fund, and all
state officers with responsibility for the custody or investment of such
fund or of its assets, are authorized and directed to take any and all
actions necessary or appropriate to cause such fund to make purchases,
in accordance with a schedule to be established, subject to amendment
from time to time, by the state director of the budget in the aggregate
principal amount of two hundred eighty-three million dollars, of
obligations of any one or more of the following public benefit
corporations: the New York state housing finance agency, the New York
state medical care facilities finance agency, the dormitory authority
and the New York state environmental facilities corporation. Such
schedule may be amended from time to time to provide for the renewal,
refunding, redemption or repayment of notes purchased by the state
insurance fund in accordance with the schedule, or for the conversion of
such notes into bonds, provided that at no time shall the total
aggregate amount of obligations held by the state insurance fund
pursuant to the provisions of this section exceed two hundred
eighty-three million dollars. The terms and conditions of such
obligations, including the times of purchase and maturities thereof and
the rates of interest thereon, shall be determined by the public benefit
corporation issuing the obligations, provided such terms and obligations
are found to be fair and reasonable by the state superintendent of
financial services.

2. In order to obtain the funds necessary to make the purchases
required by subdivision one of this section, the state insurance fund,
and all state officers with responsibility for the custody or investment
of such fund or of its assets, are authorized and directed to take any
and all actions necessary or appropriate to cause such fund to sell all
United States government securities and all United States government
agency and instrumentality securities owned by the fund, on such terms
and conditions as are found to be fair and reasonable by the state
superintendent of financial services.

3. It is hereby found and declared that any and all obligations of the
New York state housing finance agency, the New York state medical care
facilities finance agency, the dormitory authority and the New York
state environmental facilities corporation, are reasonable, prudent,
proper and legal investments for the state insurance fund and for all
state officers with responsibility for the custody or investment of such
fund or of its assets.

4. Notwithstanding any other provision of law, no state officer with
responsibility for the custody or investment of the state insurance fund
or of its assets, or for the approval of the sale or investment of such
assets, nor any investment advisor, attorney, accountant or actuary who
shall have been employed by or shall have advised such officer, shall
incur or suffer any liability whatsoever to any person by reason of
actions taken pursuant to the authorization and direction of
subdivisions one or two of this section. Any action which could have
been brought against any aforementioned state officer, investment
advisor, attorney, accountant or actuary, except for the provisions of
this subdivision, may be brought against the state insurance fund.

5. a. Notwithstanding any other provision of law, including the
provisions of section seventeen of the public officers law, the state
insurance fund and the state, jointly and severally, shall save harmless
and indemnify each and every state officer with responsibility for the
custody or investment of such fund or of its assets or for the approval
of the sale or investment of such assets, and any investment advisor,
attorney, accountant or actuary who shall have been employed by or who
shall have advised such officer, and the state shall save harmless and
indemnify the state insurance fund, from any and all financial loss and
expense arising out of or in connection with any claim, demand, suit,
action, proceeding or judgment for alleged negligence, gross negligence,
waste or breach of fiduciary duty, or incapacity of any kind by reason
of any transaction pursuant to the authorization and direction of
subdivisions one or two of this section, provided that such officer,
investment advisor, attorney, accountant or actuary 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, give notice thereof to such fund or the attorney general.
Upon such notice the state insurance fund and the attorney general
shall, if so requested, assume control of the representation of such
officer or investment advisor, attorney, accountant or actuary, in
connection with such claim, demand, suit, action or proceeding. Each
person so represented shall cooperate fully with the fund and the
attorney general or any other person designated to assume such defense
in respect of such representation or defense.

b. Notwithstanding any provision of law to the contrary, the state
shall also save harmless and indemnify the state insurance fund for any
and all financial loss and expense arising out of or in connection with
any claim, demand, suit, action, proceeding or judgment rendered
thereupon against such fund pursuant to subdivision four hereof,
provided that such fund shall, within five days after the date on which
it is served with, or receives actual notice of, any summons, complaint,
process, notice, demand, claim or pleading, give notice thereof to the
attorney general. Upon such notice the attorney general shall assume
control of the representation of such fund in connection with such
claim, demand, suit, action or proceeding. The fund shall cooperate
fully with the attorney general or any other person designated to assume
such defense in respect of such representation or defense.