Section 3567. Actions against the corporation

1. Except in an action for
  wrongful death, an action or proceeding under article  fourteen  of  the
  civil  service  law  or  section  thirty-five  hundred fifty-six of this
  title, no action or special proceeding shall be prosecuted or maintained
  against the corporation, its members, officers or employees for personal
  injury or damage to real or  personal  property  alleged  to  have  been
  sustained  by  reason  of  the  negligence,  tort or wrongful act of the
  corporation or of  any  member,  officer,  agent  or  employee  thereof,
  unless:  (a)  notice  of  claim shall have been made and served upon the
  corporation within the time limit set 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, (c) the action or special
  proceeding shall be commenced within one year and ninety days after  the
  happening of the event upon which the claim is based, and (d) an action,
  against  the  corporation  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. Whenever a notice of claim is served upon the corporation, 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 corporation may require any person presenting for settlement an
  account or claim for any cause whatsoever against the corporation to  be
  sworn  before  a trustee, counsel or an attorney, officer or employee of
  the corporation 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 corporation shall have  power  to  settle  or
  adjust all claims in favor of or against the corporation.
    4.  Any action or proceeding to which the corporation or the people of
  the state may be parties,  in  which  any  question  arises  as  to  the
  validity  of  this title, shall be preferred over all other civil causes
  of action or cases, except election causes of action or  cases,  in  all
  courts  of  the state and shall be heard and determined in preference to
  all  other  civil  business  pending  therein  except  election  causes,
  irrespective  of  position on the calendar. The same preference shall be
  granted upon application of the corporation or its counsel in any action
  or proceeding questioning the  validity  of  this  title  in  which  the
  corporation may be allowed to intervene. The venue of any such action or
  proceeding shall be laid in the supreme court of the County of Erie.
    5.  The  rate  of  interest  to  be  paid  by the corporation upon any
  judgment for which it is liable, other than a  judgment  on  its  bonds,
  shall  be  the  rate  prescribed  by section one of chapter five hundred
  eighty-five of the laws of nineteen  hundred  thirty-nine,  as  amended.
  Interest  on  payments  of principal or interest on any bonds in default
  shall accrue at the rate borne by such bonds from the due  date  thereof
  until paid or otherwise satisfied.
    6.  All  actions  or proceedings against the corporation for breach of
  contract, express or  implied,  or  for  the  torts  of  its  directors,
  officers  or  employees  while  acting  as  such  directors, officers or
  employees, except for any  action  brought  by  a  trustee  pursuant  to
  section thirty-five hundred sixty-one of this title, shall be brought in
  the court of claims.