§ 87-h. Investments of the state insurance fund. 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 to take any and all actions necessary or appropriate to cause such fund to make purchases of the interest of the New York state urban development corporation in certain securities or moneys as described in section three hundred thirty of the chapter of the laws of nineteen hundred ninety which added this section or its interest in such portion of such securities or moneys as shall be specified by the director of the budget, for a price equal to the reasonable value of the securities or moneys so purchased; provided that all payments which the fund shall be entitled to as buyer of such interest of the New York state urban development corporation in such moneys or securities as provided in such chapter shall be secured through credit enhancement provided by an enhancer whose credit rating at the time the enhancement arrangement is entered into is at least "Aa" or "AA", as the case might be, by a nationally recognized rating agency. Such fund is further authorized to enter into such transactions with respect to such securities as are necessary to effectuate the purposes of such chapter.

2. It is hereby found and declared that any and all such purchases of such interest in such securities or moneys 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 purchases authorized 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 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 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 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 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.