Section 68. Compromise of actions, proceedings or claims

1. The town board
  of any town may compromise or settle:
    a. An action or proceeding against the town, with the approval of  the
  court in which such action or proceeding is pending.
    b. Any claim presented pursuant to section sixty-five-a or sixty-seven
  of  this chapter, with the approval of a justice of the supreme court of
  the judicial district in which such town is located.
    2. The order of the court or the justice approving such settlement  or
  compromise  may  be  granted  upon  the motion of an officer of the town
  designated by the town board, supported by the affidavit of such officer
  setting forth the cause of action or the claim against the town and also
  such other information which, in his opinion, will enable the  court  or
  the  justice  to  arrive  at  a  determination  that  such compromise or
  settlement is just, reasonable and to the interest  of  the  town.  Such
  officer  may  also present the affidavits of other persons in support of
  his motion. The court or the justice, in  order  to  arrive  at  such  a
  determination,   may   require   such   officer  to  present  additional
  information by a supplemental affidavit or  affidavits  or  may  require
  other persons to present additional information by their affidavits.
    3.  Upon  obtaining the approval of the court or the justice, the town
  board may pay the amount of such compromise or settlement from funds  or
  sources  authorized  pursuant  to  section  one  hundred  twelve of this
  chapter.
    4. Notwithstanding the foregoing provisions of this section, the  town
  board  of  any  town  may compromise or settle any action, proceeding or
  claim against the town upon such terms as said board shall determine are
  just, reasonable and to the interest of the town.