Sec. 7-380a. Assumption of liability by municipality for employees providing information pertaining to issuance of bonds or notes.
Sec. 7-380a. Assumption of liability by municipality for employees providing
information pertaining to issuance of bonds or notes. For purposes of this section,
"municipality" shall mean any town, city, borough, consolidated town and city, consolidated town and borough, fire district, school district, regional school district, sewer
district or any other political subdivision of the state authorized to issue bonds or notes
by general or special act; "official" shall mean any person elected or appointed to office
or employed by a municipality. Each municipality shall protect and save harmless any
official or former official of such municipality from financial loss and expense, including
legal fees and costs, if any, arising out of any claim, demand, suit or judgment by reason
of alleged negligence on the part of such official, while acting in the discharge of his
official duties, in providing information to any potential investor or underwriter of the
municipality's bonds or notes. Nothing herein shall be construed to preclude the defense
of governmental immunity to any such claim, demand or suit. Each such municipality
may insure against the liability imposed by this section in any insurance company organized in this state or in any insurance company of another state authorized to write such
insurance in this state or may elect to act as self-insurer of such liability. This section
shall not apply to cases of wilful and wanton fraud.
(P.A. 76-318.)