Section 3020. Actions against a municipal assistance corporation; indemnification

1. Except in an action for wrongful death,  an  action  against  a  municipal  assistance  corporation  for  personal  injury or
  property damage or founded on tort shall not be commenced more than  one
  year  and  ninety  days after the cause of action shall have accrued nor
  unless a notice of claim shall have been served on a  director  of  such
  corporation,  or  an  officer  or  employee  thereof  designated  by the
  corporation for such  purpose,  within  the  time  limited  by,  and  in
  compliance  with  the  requirements  of  section  fifty-e of the general
  municipal law. An action against a municipal assistance 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. The venue of every  action,  suit  or  special  proceeding  brought
  against a corporation shall be laid in the county in which the principal
  office of such corporation is located.
    3.  a. The state shall save harmless and indemnify directors, officers
  and employees of and representatives to a corporation, 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, employee or representative occurring in the discharge
  of  his  duties  and  within  the scope of his service on behalf of such
  corporation, 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 of  a  corporation  (or  those  of  any  other  public
  corporation  if  such  loss  allegedly  resulted from its dealing with a
  municipal assistance corporation). In  the  event  of  any  such  claim,
  demand,  suit  or  judgment,  a  director,  officer  or  employee  of or
  representative to a municipal  assistance  corporation  shall  be  saved
  harmless  and  indemnified,  notwithstanding  the limitations 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 such
  corporation or not to have had reasonable  cause  to  believe  that  his
  conduct was lawful.
    b.  In  connection with any such claim, demand, suit, or judgment, any
  director, officer or employee of or representative  to  the  corporation
  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  representation,
  that  appropriate  groups of such individuals be represented by the same
  counsel. If the individual  or  group  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
  attorney's  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 of directors of the corporation
  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
  directors,  officers  or  employees  of  and  representatives   to   the
  corporation  by  section seventeen of the public officers law, by action
  of  the  corporation,  or  otherwise. The provisions of this subdivision
  shall  inure  only  to  directors,  officers  and   employees   of   and
  representatives  to  the  corporation, 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.