§ 87-h. Investments of the state insurance fund. 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 to
take any and all actions necessary or appropriate to cause such fund to
make purchases of the interest of the New York state urban development
corporation in certain securities or moneys as described in section
three hundred thirty of the chapter of the laws of nineteen hundred
ninety which added this section or its interest in such portion of such
securities or moneys as shall be specified by the director of the
budget, for a price equal to the reasonable value of the securities or
moneys so purchased; provided that all payments which the fund shall be
entitled to as buyer of such interest of the New York state urban
development corporation in such moneys or securities as provided in such
chapter shall be secured through credit enhancement provided by an
enhancer whose credit rating at the time the enhancement arrangement is
entered into is at least "Aa" or "AA", as the case might be, by a
nationally recognized rating agency. Such fund is further authorized to
enter into such transactions with respect to such securities as are
necessary to effectuate the purposes of such chapter.

2. It is hereby found and declared that any and all such purchases of
such interest in such securities or moneys 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.

3. In order to obtain the funds necessary to make the purchases
authorized 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 to take any and all
actions necessary or appropriate to cause such fund to sell securities
owned by the fund or to borrow an amount not exceeding the obligation
incurred by such fund pursuant to this section and to pledge as
collateral therefor such assets, on such terms and conditions as are
found to be fair and reasonable by the state superintendent of financial
services.

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 of subdivision one or three
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 of subdivision one or
three of this section, provided that such officer, investment advisor,
attorney, accountant or actuary shall, within fifteen 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 or by
reason of any transaction pursuant to the authorization of subdivision
one or three of this section, provided that such fund shall, within
fifteen 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.