87-g. Advances to the urban development corporation. 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 advance thirty million dollars to the urban development corporation as soon as possible, but in no event later than March thirty-first, nineteen hundred ninety-one, in return for repayment of the aforesaid advance to the state insurance fund over a maximum of thirty years with interest from the date of advance at the rate of ten per centum per annum calculated quarterly using actual days and payable quarterly; said payment with accrued interest to be derived solely and exclusively from moneys pledged to be repaid by the urban development corporation to the state of New York out of payments on loans or leases which the urban development corporation has made or will make pursuant to appropriations and reappropriations through fiscal year nineteen hundred eighty-nine--ninety and any subsequent reappropriations thereof under the following legislative initiatives and any amendments thereof, excluding, however, any moneys appropriated for the minority and women revolving loan fund and the Buffalo minority and women enterprise center: Economic Development Purpose:
Chapter 776, section 3, of the laws of 1978, as amended by chapter 54, section 3, of the laws of 1988 and reappropriated by chapter 54, section 3, of the laws of 1989 ($30,000,000); chapter 54, section 1, of the laws of 1978, as amended by chapter 54, section 3, of the laws of 1988 and reappropriated by chapter 54, section 3, of the laws of 1989 ($24,000,000). High Risk Targeted Investment Purpose:
Chapter 54, section 1, of the laws of 1989, as amended by chapter 361, section 1, of the laws of 1989 ($4,150,000); chapter 54, section 1, of the laws of 1988, as amended by chapter 391, section 2 of the laws of 1989 ($7,500,000); chapter 54, section 1, of the laws of 1987, as amended by chapter 391, section 2, of the laws of 1989 ($7,000,000); chapter 54, section 1, of the laws of 1986, as amended by chapter 391, section 2, of the laws of 1989 ($7,000,000); chapter 54, section 1, of the laws of 1985, as amended by chapter 54, section 3, of the laws of 1988 and reappropriated by chapter 54, section 3, of the laws of 1989 ($9,500,000); chapter 54, section 1, of the laws of 1984, as amended by chapter 54, section 3, of the laws of 1988 and reappropriated by chapter 54, section 3, of the laws of 1989 ($9,500,000); chapter 54, section 1, of the laws of 1983, as last reappropriated pursuant to chapter 54, section 3, of the laws of 1984 ($9,500,000); chapter 50, section 1, of the laws of 1982 ($9,500,000); chapter 50, section 1, of the laws of 1981, as last reappropriated by chapter 54, section 3, of the laws of 1984 ($7,000,000). Industrial Building Recycling Program:
Chapter 50, section 1, of the laws of 1981, as amended and last reappropriated pursuant to chapter 54, section 3, of the laws of 1988 ($1,500,000). Industrial Innovation Program:
Chapter 54, section 1, of the laws of 1984, as amended and reappropriated by chapter 54, section 3, of the laws of 1989 ($10,000,000). Small and Medium-sized Business Assistance Program:
Chapter 54, section 1, of the laws of 1989, as amended by chapter 391, section 1, of the laws of 1989 ($2,000,000); chapter 54, section 1, of the laws of 1988 ($2,000,000); chapter 54, section 1, of the laws of 1987, as amended by chapter 391, section 2, of the laws of 1989 ($4,200,000); chapter 54, section 1, of the laws of 1986, as amended by chapter 54, section 3, of the laws of 1988 ($8,000,000). Strategic Resurgence Fund:
Chapter 54, section 1, of the laws of 1989, as amended by chapter 391, section 1, of the laws of 1989 ($6,850,000); chapter 54, section 1, of the laws of 1988, as amended by chapter 54, section 3, of the laws of 1989 ($10,000,000); chapter 54, section 1, of the laws of 1987, as amended by chapter 839, section 29, of the laws of 1987, and reappropriated by chapter 54, section 3, of the laws of 1989 ($10,500,000). Regional Economic Development Program:
Chapter 54, section 1, of the laws of 1985, as amended by chapter 54, section 3, of the laws of 1987 ($5,000,000).
Notwithstanding any other provision of law, to the extent of the moneys to be so repaid with accrued interest to the state insurance fund, any obligations of the urban development corporation to the state of New York under the appropriations and reappropriations enumerated above are replaced by and become obligations of the urban development corporation to the state insurance fund until such time as the aforesaid advance, with interest, is fully repaid; and all payments received by the urban development corporation from the loans and leases made pursuant to appropriations and reappropriations enumerated above, and from such other loans and leases then held by the urban development corporation and in which the state is not a leasee or subleasee as the director of the budget may approve, shall be remitted to the state insurance fund, and to no other person or entity, including the state of New York, until there is repayment in full of the advance and all accrued interest to the state insurance fund, such remittals to be credited first against any unpaid accrued interest and then to the principal of the advance.
2. It is hereby found and declared that any and all such advances to the urban development 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.
3. In order to obtain the funds necessary to make the advances 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 securities owned by the fund or to borrow an amount not exceeding the obligation incurred by such fund pursuant to this section and to pledge as collateral therefor such assets, on such terms and conditions as are found to be fair and reasonable by the state superintendent of financial services.
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 subdivision one or three 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 subdivision one or three of this section, provided that such officer, investment advisor, attorney, accountant or actuary shall, within fifteen 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 or by reason of any transaction pursuant to the authorization and direction of subdivision one or three of this section, provided that such fund shall, within fifteen 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.
Last modified: February 3, 2019