Section 2050-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. Actions to recover damages
  for  personal  injury or injury to property caused by the latent effects
  of exposure to any substance or combination of substances, in any  form,
  upon  or within the body or upon or within property shall be governed by
  section two hundred fourteen-c of the civil practice law and rules.
    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  three-a  of  the  general  municipal  law.
  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.