Section 27-A. Investments in obligations of designated public benefit corporations; indemnifications

1. The aggregate  trust  fund,  and  all
  state officers with responsibility for the custody or investment of such
  fund  or  of its assets, are authorized and directed to take any and all
  actions necessary or appropriate to cause such fund to  make  purchases,
  in  accordance  with  a schedule to be established, subject to amendment
  from time to time, by the state director of the budget in the  aggregate
  principal  amount of seventy-five million dollars, of obligations of the
  state of New York and of any one or more of the following public benefit
  corporations: the New York state housing finance agency, including,  but
  not  limited  to,  obligations  secured  by  second mortgages on housing
  projects insured by the Federal government or an agency thereof, the New
  York  state  medical  care  facilities  finance  agency,  the  dormitory
  authority  and  the New York state environmental facilities corporation.
  The schedule of obligations to be purchased pursuant to this section may
  include, but shall not be limited to,  short  term  obligations  of  the
  housing  finance  agency for purposes of proviving a bridge loan for the
  financing of  housing  projects,  in  anticipation  of  the  receipt  of
  proceeds  from  Federal  mortgage  insurance on such housing projects or
  such other proceeds as  may  become  available.  Such  schedule  may  be
  amended  from  time  to  time  to  provide  for  the renewal, refunding,
  redemption or repayment of notes purchased by the aggregate  trust  fund
  in  accordance  with  the  schedule, or for the conversion of such notes
  into bonds or other long term obligations,  provided  that  at  no  time
  shall  the  total  aggregate amount of obligations held by the aggregate
  trust  fund  pursuant  to  the  provisions  of   this   section   exceed
  seventy-five  million  dollars.    The  terms  and  conditions  of  such
  obligations, including the times of purchase and maturities thereof  and
  the  rates  of  interest  thereon,  shall  be  determined  by  the state
  comptroller in the case of state obligations or by  the  public  benefit
  corporation issuing the obligations, provided such terms and obligations
  are  found  to  be  fair  and  reasonable by the state superintendent of
  insurance.
    2. Notwithstanding any general or special  provision  of  law  to  the
  contrary,  in  order  to  obtain  the  monies  necessary to purchase the
  obligations  required  by  subdivision  one   of   this   section,   the
  commissioners  of the state insurance fund, in accordance with rules and
  regulations adopted by such commissioners, shall have the right  (i)  to
  borrow  an amount not exceeding the obligation incurred by the aggregate
  trust fund pursuant  to  this  section,  and  to  pledge  as  collateral
  therefor  such  assets as they may deem advisable, (ii) to sell any fund
  assets under an agreement or option  for  the  repurchase  thereof  from
  monies  or assets in the fund or (iii) to sell fund assets on such terms
  and conditions as are found to be  fair  and  reasonable  by  the  state
  superintendent of insurance.
    3. It is hereby found and declared that any and all obligations of the
  state  of  New  York, the New York state housing finance agency, the New
  York  state  medical  care  facilities  finance  agency,  the  dormitory
  authority  and  the New York state environmental facilities corporation,
  are reasonable, prudent, proper and legal investments for the  aggregate
  trust  fund  and  for  all  state  officers  with responsibility for the
  custody or investment of such fund or of its assets.
    4. Notwithstanding any other provision of law, no state  officer  with
  responsibility for the custody or investment of the aggregate trust fund
  or  of its assets, or for the approval of the sale or investment of such
  assets, nor any investment advisor, attorney, accountant or actuary  who
  shall  have  been  employed by or shall have advised such officer, shall
  incur or suffer any liability whatsoever to  any  person  by  reason  of

  actions taken pursuant to the authorization and direction of subdivision
  one  or  two  of  this section. Any action which could have been brought
  against any aforementioned state officer, investment advisor,  attorney,
  accountant  or  actuary,  except for the provisions of this subdivision,
  may be brought against the aggregate trust fund.
    5. a. Notwithstanding  any  other  provision  of  law,  including  the
  provisions  of  section  seventeen  of  the  public  officers  law,  the
  aggregate trust fund and the state, jointly and  severally,  shall  save
  harmless  and indemnify each and every state officer with responsibility
  for the custody or investment of such fund or of its assets or  for  the
  approval  of  the  sale or investment of such assets, and any investment
  advisor, attorney, accountant or actuary who shall have been employed by
  or who shall have  advised  such  officer,  and  the  state  shall  save
  harmless  and  indemnify  the  aggregate  trust  fund,  from any and all
  financial loss and expense arising out of  or  in  connection  with  any
  claim,   demand,  suit,  action,  proceeding  or  judgment  for  alleged
  negligence, gross negligence, waste or  breach  of  fiduciary  duty,  or
  incapacity  of  any  kind  by  reason of any transaction pursuant to the
  authorization and direction of subdivision one or two of  this  section,
  provided  that such officer, investment advisor, attorney, accountant or
  actuary shall, within five days after the date on which he is personally
  served with, or receives  actual  notice  of,  any  summons,  complaint,
  process,  notice, demand, claim or pleading, give notice thereof to such
  fund or the attorney general. Upon such notice the aggregate trust  fund
  and  the  attorney general shall, if so requested, assume control of the
  representation  of  such  officer  or  investment   advisor,   attorney,
  accountant  or  actuary,  in  connection  with such claim, demand, suit,
  action or proceeding. Each person so represented shall  cooperate  fully
  with the fund and the attorney general or any other person designated to
  assume such defense in respect of such representation or defense.
    b.  Notwithstanding  any  provision  of law to the contrary, the state
  shall also save harmless and indemnify the aggregate trust fund for  any
  and  all financial loss and expense arising out of or in connection with
  any  claim,  demand,  suit,  action,  proceeding  or  judgment  rendered
  thereupon  against  such  fund  pursuant  to  subdivision  four  hereof,
  provided that such fund shall, within five days after the date on  which
  it is served with, or receives actual notice of, any summons, complaint,
  process,  notice,  demand, claim or pleading, give notice thereof to the
  attorney general. Upon such notice the  attorney  general  shall  assume
  control  of  the  representation  of  such  fund in connection with such
  claim, demand, suit, action or  proceeding.  The  fund  shall  cooperate
  fully with the attorney general or any other person designated to assume
  such defense in respect of such representation or defense.