§ 87-a. Investment in obligations of the municipal assistance
corporation for the city of New York; indemnification. 1. The state
insurance fund, and all state officers with responsibility for the
custody or investment thereof, are authorized and directed to take any
and all actions necessary or appropriate to cause such fund to make
purchases as soon as possible, in accordance with a schedule to be
established by the New York state emergency financial control board, but
in no event later than December first, nineteen hundred seventy-five, of
bonds of the municipal assistance corporation for the city of New York
in the aggregate principal amount of one hundred million dollars,
provided, however, that at the date of any such purchase the city of New
York has not defaulted in the payment of any of its outstanding bonds or
notes. The terms and conditions of such bonds, including the rates of
interest thereon, shall be determined by the municipal assistance
corporation for the city of New York, after consultation with the
commissioners of the fund, provided such terms and conditions are found
to be fair and reasonable by the New York state emergency financial
control board.

2. It is hereby found and declared that obligations of the municipal
assistance corporation for the city of New York are reasonable, prudent,
proper and legal investments for the state insurance fund or for any
state officer with custody or responsibility for the investment of the
assets thereof.

3. Notwithstanding any other provision of law, including the
provisions of section seventeen of the public officers law, no state
officer with custody or responsibility for the investment of the assets
thereof shall incur or suffer any liability whatsoever to any person
beneficially interested in such system by reason of actions taken
pursuant to the authorization and direction of subdivision one and such
fund shall save harmless and indemnify all such officers and any
investment advisors from financial loss arising out of any claim,
demand, suit, action or judgment for alleged negligence, waste or breach
of fiduciary duty by reason of any investment of any monies of the state
insurance fund in obligations of the municipal assistance corporation
for the city of New York provided that such person shall, within five
days after the date on which he is served with any summons, complaint,
process, notice, demand, claim or pleading, deliver the original or a
true copy thereof to the legal advisor of such system. Upon such
delivery the legal advisor of the state insurance fund may assume
control of the representation of such person in connection with such
claim, demand, suit, action or proceeding. Such person shall cooperate
fully with the legal advisor of the system or any other person
designated to assume such defense in respect of such representation or
defense.

4. In order to obtain the funds necessary to purchase the bonds
required by this chapter, the commissioners of the state insurance fund
in accordance with rules and regulations adopted by such commissioners
shall have the right to borrow an amount not exceeding the obligation
incurred by such fund pursuant to this chapter and to pledge as
collateral therefor such assets as they may deem advisable.