§ 13. Indemnification. 1. The state shall save harmless and indemnify
members, officers and employees of and representatives to the board, 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 member, officer, employee or representative occurring in the
discharge of his duties and within the scope of his service on behalf of
such board 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 member, officer or employee of or representative to the
board 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
reasonably believed to be in the best interest of the board or not to
have had reasonable cause to believe that his conduct was lawful.

2. In connection with any such claim, demand, suit, or judgment, any
member, officer or employee of or representative to the board shall be
entitled to representation by private counsel of his choice in any civil
judicial proceeding whenever the attorney general determines based upon
his 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 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 chairman of the board, upon the audit and warrant of the
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 members, officers, or employees of and
representatives to the board by section seventeen of the public officers
law, by action of the board or otherwise. The provisions of this
subdivision shall inure only to members, officers and employees of and
representatives to the board, 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.