Pursuant to N.J.S.A. 59:10-1 et seq., whenever an official of the Township is defendant in any action or legal proceeding arising out of or incidental to the performance of official duties, the Township Committee is authorized to provide the official with the necessary defense, or at its option, means for the defense, of such action or proceeding and shall hold the official harmless from any payment, settlement or judgment resulting from the proceeding, except in the following situations:
A. Where the action has been brought by the Township itself against the official.
B. Where the official has been specifically found by the trier of fact in proceedings, civil or criminal, to have acted because of actual fraud, actual malice or willful misconduct or outside the scope of employment or authority.
C. Where the official is found to have acted in violation of any Municipal Code of Ethics which may now or hereafter be enacted.