§ 87-d. Contractual obligations as evidence of indebtedness upon
reimbursement of reserves. 1. a. Notwithstanding any other provision of
law the contrary, the state insurance fund, hereafter referred to as the
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
enter into an agreement, renewable on an annual basis, with the
department of civil service whereunder the state shall make advance
periodic payments to the fund for the payment to maturity of all
obligations under this chapter of the state as employer and the fund as
insurer with respect to injuries or deaths resulting from accidents
arising out of and in the course of employment occurring prior to April
first, nineteen hundred eighty-one.

b. The agreement shall provide that the fund shall segregate on an
actuarially sound basis any and all monies and assets held by it as
reserves for the payment of such obligations of the state under this
chapter, and pay to the state the aggregate amount thereof.

c. The agreement shall further provide that if at any time prior to
July first, nineteen hundred eighty-two, and at any time prior to the
termination of any twelve month period immediately succeeding such date
during which the agreement, or any renewal, is in effect, an amount
equal to the total amount in the aggregate determined by the fund to be
required to pay to maturity the obligations referred to in paragraph a
of this subdivision, has not been appropriated by the state for the
state fiscal year commencing April first, nineteen hundred eighty-two,
or any subsequent fiscal year during which the agreement provided for in
this subdivision, or any renewal thereof, is in existence, the
unliquidated amount of the agreement or the renewal, as computed on an
actuarially sound basis by the fund, required to pay in the aggregate
the remainder of such incurred obligations to maturity, shall be
immediately payable by the state to the fund from the funds appropriated
by the state and encumbered by the agreement or renewal.

2. It is hereby found and declared that the agreement provided for in
subdivision one of this section is an evidence of indebtedness, and as
such, it shall be deemed an asset of the state insurance fund, and a
proper and prudent legal undertaking for any state officer with the
responsibility for the custody or the investment of the assets of the
fund, notwithstanding any other provision of law to the contrary.

3. 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 execution of and the entering into the
agreement or any renewals, as required by subdivision one of this
section, nor any 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 subdivision one of this
section. Any action which could have been brought against any
aforementioned state officer, attorney, accountant or actuary, except
for the provisions of this subdivision, may be brought against the state
of New York.

4. 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 execution
of and the entering into the agreement as required by subdivision one of
this section, and any 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 subdivision one or two of this section,
provided that such officer, 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 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.