Section 179. Investments in municipal assistance corporation obligations; indemnification

1. It is hereby found and declared that obligations of
  the municipal assistance corporation  for  the  city  of  New  York  are
  reasonable, prudent, proper and legal investments for any fund described
  in subdivision one of section one hundred seventy-six of this article or
  for any board member, officer, employee, trustee or fiduciary thereof to
  make on behalf of such fund.
    2.   Notwithstanding   any  other  provision  of  law,  including  the
  provisions of  subdivision  one  of  section  seventeen  of  the  public
  officers  law,  no  member of the board, officer, employee, fiduciary of
  any fund described in subdivision one of section one hundred seventy-six
  of this article shall incur or suffer any liability  whatsoever  to  any
  person   beneficially  interested  in  such  system  by  reason  of  any
  investment of  the  monies  thereof  in  obligations  of  the  municipal
  assistance  corporation  for  the  city of New York and each such system
  shall save harmless and indemnify all members of  the  board,  officers,
  employees,  trustees,  fiduciaries  and  investment advisors of any fund
  described in subdivision one of section one hundred seventy-six of  this
  article  from  financial  loss  arising  out of any claim, demand, suit,
  action or judgment for alleged negligence, waste or breach of  fiduciary
  duty  by  reason  of  any  investment  of  any  monies  of  such fund in
  obligations of the municipal assistance corporation for the city of  New
  York provided that such person shall, within five days after the date on
  which he is served with any summons, complaint, process, notice, demand,
  claim  or  pleading,  deliver the original or a true copy thereof to the
  legal advisor of such system. Upon such delivery the  legal  advisor  of
  such  system  may assume control of the representation of such person in
  connection with such claim, demand, suit,  action  or  proceeding.  Such
  person shall cooperate fully with the legal advisor of the system or any
  other  person  designated  to  assume  such  defense  in respect of such
  representation or defense.
    3. The provisions of this section shall not be applicable to purchases
  made by the New York city employees' retirement  system,  the  board  of
  education  retirement  system  of  the  city  of New York, the teachers'
  retirement system of the city of New York,  the  New  York  city  police
  pension  funds  and  fire department pension funds in obligations of the
  municipal  assistance  corporation  for  the  city  of  New   York   and
  obligations  of  the  city  of  New  York  from the municipal assistance
  corporation for the city of New York and the  city  of  New  York  after
  November twenty-third, nineteen hundred seventy-five, but nothing herein
  contained  shall  be deemed to diminish the indemnification provided for
  purchases made by the New York city employees'  retirement  system,  the
  board  of  education  retirement system of the city of New York, the New
  York city police pension funds and  fire  department  pension  funds  in
  obligations  of the municipal assistance corporation for the city of New
  York and obligations  of  the  city  of  New  York  from  the  municipal
  assistance corporation for the city of New York and the city of New York
  on  and  after September ninth, nineteen hundred seventy-five, but prior
  to November twenty-third, nineteen hundred seventy-five,  in  accordance
  with the provisions of this section.