Section 3641. Actions against corporation

1.  Except  in an action for
  wrongful death, 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; and
    (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  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 director, counsel, 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.
    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 five thousand four of the civil
  practice law and rules. 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 of whatsoever
  nature shall be brought in the county.