Section 3970. Actions against the authority

1. Except in an action for
  wrongful  death,  no  action  or  proceeding  shall  be  prosecuted   or
  maintained  against  the authority for personal injury or damage to real
  or personal property alleged to have been sustained  by  reason  of  the
  negligence or wrongful act of the authority or of any director, officer,
  agent  or  employee  thereof,  unless:  (a) it shall appear by and as an
  allegation in the complaint or moving papers  that  a  notice  of  claim
  shall  have  been  made  and  served upon the authority, within the time
  limit prescribed 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 proceeding shall be
  commenced within one year after the happening of the  event  upon  which
  the  claim  is based. An action against the authority 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.  Wherever  a notice of claim is served upon the authority, 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  authority may require any person presenting for settlement an
  account or claim for any cause whatever  against  the  authority  to  be
  sworn  before  a  director,  counsel or an attorney, officer or employee
  thereof 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 authority shall have power to settle or adjust any
  claims in favor of or against the authority.
    4. The rate of interest to be paid by the authority upon any  judgment
  for  which  it is liable, other than a judgment on bonds, notes or other
  obligations, shall not exceed the maximum rate of interest on  judgments
  and  accrued  claims  against  municipal  authorities as provided in the
  general municipal law. Interest on payments of principal or interest  on
  any  bonds,  notes  or  other obligations in default shall accrue at the
  rate specified in the general municipal  law  until  paid  or  otherwise
  satisfied.
    5.  The  venue  of  every  action,  suit or special proceeding brought
  against the authority shall be the supreme court in the county.
    6. Neither any director of the authority nor any officer, employee, or
  agent of the authority, while acting within the  scope  of  his  or  her
  authority,  shall  be subject to any liability resulting from exercising
  or carrying out any of the powers given in this title.
    7. (a) The state shall hold harmless and indemnify directors, officers
  and employees of the authority, 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  director,  officer,  or
  employee  occurring in the discharge of his or her duties and within the
  scope of his or her service on behalf of  the  authority  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 director, officer or
  employee of the  authority  shall  be  held  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 or she reasonably believed to be in the best  interest  of  the
  authority or not to have had reasonable cause to believe that his or her
  conduct was lawful.
    (b)  In connection with any such claim, demand, suit, or judgment, any
  director, officer or employee of the  authority  shall  be  entitled  to
  representation  by  private  counsel  of  his or her choice in any civil
  judicial proceeding whenever the attorney general determines based  upon
  his  or  her  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  are  entitled  to
  representation  by private counsel under the provisions of this section,
  the  attorney  general  shall  so  certify  to  the  state  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  authority, upon the audit and warrant of the
  state 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 directors, officers, or employees
  of  and  representatives  to  the  authority by section seventeen of the
  public officers law, by  action  of  the  authority  or  otherwise.  The
  provisions  of  this subdivision shall inure only to directors, officers
  and employees of the authority, 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.