Section 1196-M. Actions against an authority

1. Except in an action for
  wrongful  death,  no  action  or  proceeding  shall  be  prosecuted   or
  maintained against an 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  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  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 an 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.  An  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,  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. An 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 an authority upon any judgment
  for which it is liable, other than a judgment against the  authority  on
  bonds,  shall  not exceed six per centum per annum. 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.