New York Consolidated Laws, Rural Electric Cooperative Law - REL § 26. Payment of indemnification other than by court award

(a) A person who has been successful, on the merits or otherwise, in the defense of a civil or criminal action or proceeding of the character described in section twenty-five shall be entitled to indemnification as authorized in such section.

(b) Except as provided in subdivision (a) of this section, any indemnification under section twenty-five of this article or otherwise permitted by section twenty-four of this article, unless ordered by a court under section twenty-seven of this article, shall be made by the cooperative only if authorized in the specific case:

(c) Expenses incurred in defending a civil or criminal action or proceeding may be paid by the cooperative in advance of the final disposition of such action or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount as, and to the extent, required by subdivision (a) of section twenty-eight of this article.