Section 87-C. Investments in obligations of designated public benefit corporations; indemnifications

1. The state  insurance  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  two  hundred  eighty-three  million  dollars,  of
  obligations  of  any  one  or  more  of  the  following  public  benefit
  corporations:  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. Such
  schedule may be amended from time to time to provide  for  the  renewal,
  refunding,  redemption  or  repayment  of  notes  purchased by the state
  insurance fund in accordance with the schedule, or for the conversion of
  such notes into  bonds,  provided  that  at  no  time  shall  the  total
  aggregate  amount  of  obligations  held  by  the  state  insurance fund
  pursuant  to  the  provisions  of  this  section  exceed   two   hundred
  eighty-three   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 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. In order to obtain  the  funds  necessary  to  make  the  purchases
  required  by  subdivision one of this section, the state insurance 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 sell all
  United States government securities and  all  United  States  government
  agency  and  instrumentality securities owned by the fund, 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
  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 state insurance 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 state insurance 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
  subdivisions  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 state insurance fund.
    5. a. Notwithstanding  any  other  provision  of  law,  including  the
  provisions  of  section  seventeen of the public officers law, the state
  insurance 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 state insurance 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
  subdivisions  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  state  insurance  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 state insurance 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.