Section 2045-O. Actions against agency

1. Except in an action for wrongful
  death, no action or special proceeding shall be prosecuted or maintained
  against the agency 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 agency or of any member, officer, agent or  employee
  thereof,  unless  (a)  a notice of claim shall have been made and served
  upon the agency 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
  special  proceeding  shall  be commenced within one year and ninety days
  after the happening of the event upon  which  the  claim  is  based.  An
  action  against  the  agency  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 agency, 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 agency may require any person,  presenting  for  settlement  an
  account  or  claim for any cause whatever against the agency to be sworn
  before a member, counsel or an attorney,  officer  or  employee  of  the
  agency 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 agency shall have power to settle or adjust all claims in
  favor of or against the agency.
    4. The rate of interest to be paid by the agency 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.