Section 56-A. Indemnification of members, officers and employees

The state
  shall save harmless and indemnify the respective members,  officers  and
  employees  of  the  agency  and  its subsidiary corporations pursuant to
  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
  member, officer or employee occurring in the discharge of his duties and
  within  the  scope  of  his  service  on  behalf  of  the  agency or its
  subsidiary corporations. In the event of  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
  notes,  bonds  or  other obligations of the agency, a member, officer or
  employee  of  the  agency  shall  be  saved  harmless  and   indemnified
  notwithstanding  any  limitations  contained  in such section seventeen,
  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 interests of the agency or not  to  have  had  reasonable
  cause  to  believe that his conduct was lawful. All of the provisions of
  section seventeen of the public officers law which are not  inconsistent
  with  this section shall apply to the members, officers and employees of
  the agency or its  subsidiary  corporations,  including  the  provisions
  relating  to  the  defense by the attorney general or private counsel of
  any civil action and the payment of legal costs incurred  in  connection
  with  the defense of any such action. Any member, officer or employee of
  the agency or its subsidiary corporations seeking to be  saved  harmless
  or indemnified or to claim any other benefits available pursuant to this
  section  or  section  seventeen  of the public officers law shall comply
  with the procedural requirements of such section seventeen. As  used  in
  this  section the terms "member", "officer" and "employee" shall include
  a former member, officer or employee, his estate or judicially appointed
  personal representative.