§ 87-d. Contractual obligations as evidence of indebtedness upon reimbursement of reserves. 1. a. Notwithstanding any other provision of law the contrary, the state insurance fund, hereafter referred to as the 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 enter into an agreement, renewable on an annual basis, with the department of civil service whereunder the state shall make advance periodic payments to the fund for the payment to maturity of all obligations under this chapter of the state as employer and the fund as insurer with respect to injuries or deaths resulting from accidents arising out of and in the course of employment occurring prior to April first, nineteen hundred eighty-one.

b. The agreement shall provide that the fund shall segregate on an actuarially sound basis any and all monies and assets held by it as reserves for the payment of such obligations of the state under this chapter, and pay to the state the aggregate amount thereof.

c. The agreement shall further provide that if at any time prior to July first, nineteen hundred eighty-two, and at any time prior to the termination of any twelve month period immediately succeeding such date during which the agreement, or any renewal, is in effect, an amount equal to the total amount in the aggregate determined by the fund to be required to pay to maturity the obligations referred to in paragraph a of this subdivision, has not been appropriated by the state for the state fiscal year commencing April first, nineteen hundred eighty-two, or any subsequent fiscal year during which the agreement provided for in this subdivision, or any renewal thereof, is in existence, the unliquidated amount of the agreement or the renewal, as computed on an actuarially sound basis by the fund, required to pay in the aggregate the remainder of such incurred obligations to maturity, shall be immediately payable by the state to the fund from the funds appropriated by the state and encumbered by the agreement or renewal.

2. It is hereby found and declared that the agreement provided for in subdivision one of this section is an evidence of indebtedness, and as such, it shall be deemed an asset of the state insurance fund, and a proper and prudent legal undertaking for any state officer with the responsibility for the custody or the investment of the assets of the fund, notwithstanding any other provision of law to the contrary.

3. 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 execution of and the entering into the agreement or any renewals, as required by subdivision one of this section, nor any 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 of this section. Any action which could have been brought against any aforementioned state officer, attorney, accountant or actuary, except for the provisions of this subdivision, may be brought against the state of New York.

4. 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 execution of and the entering into the agreement as required by subdivision one of this section, and any 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 subdivision one or two of this section, provided that such officer, 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 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.