As used in this chapter, the following terms shall have the meanings
indicated:
OFFICIAL or MUNICIPAL OFFICIAL
A present or former municipal employee, appointee, official, elected
official or member of the various boards, agencies and commissions of the
Borough of Stanhope, Sussex County, New Jersey.
The Mayor and Council shall not approve indemnification of the defense
of any action if:
A. The act or omission complained of was not within the
scope of employment or authority.
B. The act or omission complained of was because of actual
fraud, willful misconduct or actual malice.
C. The defense of the action or proceeding would create
a conflict of interest between the borough and the official involved.
D. There exist policies of insurance, either obtained by
the borough or by another by virtue of which the municipal official is entitled
to a defense of the action in question from the insurer.
E. The municipal official has failed to deliver to the Mayor
and Council, within ten (10) days of the time he or she is served with any
summons, complaint, process, notice, demand or pleading, the original or copy
of such document or thereafter fails to cooperate with the borough in the
defense of the matter.
F. The official fails to request the defense of any action.
G. The action was brought by the borough.
If the Mayor and Council determines to provide a defense as authorized
in this chapter, it may do so by:
B. Hiring an attorney of its choice and paying the same
directly; or
C. Reimbursing the municipal official for reasonable attorney's
fees expended or obligated to be expended by such official in the defense
of the act.
In addition to the provisions hereof, all officials of the borough shall
be entitled to defense and indemnification as provided in N.J.S.A. 59:10-1
et seq. and N.J.S.A. 59:10A-1 et seq.