§ 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 financial services.

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 financial services.

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.