Section 1120-O. Actions against the authority

1. No action or special
  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 member, officer, agent or employee thereof, unless:
    (a)  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  special proceeding shall be commenced within one
  year and ninety days after the happening of the  event  upon  which  the
  claim is based.
    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  member,  counsel, officer or employee of the authority
  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 all 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 against its  bonds,  shall
  be  the rate prescribed by section three-a of the general municipal law.
  Interest on payments of principal or interest on any  bonds  in  default
  shall  accrue  at the rate or rates set forth in such bonds from the due
  date thereof until paid or otherwise satisfied.