The Council shall establish a personnel system for the Borough based upon merit. The system so established shall not be inconsistent with any statute heretofore enacted by the Commonwealth affecting the rights, benefits or working conditions of the employees of the Borough.
A. 
The Council of the Borough shall reimburse or indemnify each elected official, officer, employee and appointee of the Borough for or against all liabilities and expenses reasonably incurred by or imposed upon him in connection with or resulting from any claim, action, suit or proceeding, civil, criminal, administrative or investigative, in which he may become involved as a party or otherwise by reason of his being or having been such elected official, officer, employee, or appointee of the Borough, or by reason of any action taken or not taken in such capacity, whether or not he continues to be such at the time such liabilities or expenses are incurred, provided that, in respect of any action by or in the right of the Borough, he was not negligent or guilty of misconduct to the Borough and, in respect of all other actions, he acted in good faith in what he reasonably believed to be in the best interests of the Borough and, in addition to any criminal action, had no reasonable cause to believe that his conduct was unlawful.
B. 
Where he has wholly been successful on the merits in such action, or where indemnification of him has been awarded by a Court, he shall be entitled to indemnification as of right.
C. 
Otherwise, the Council of the Borough shall reimburse or indemnify him only if a majority of the members of Council or a court of competent jurisdiction determines that he has met the standards as set forth hereinabove.
D. 
Moreover, in this regard, the Council of the Borough of Green Tree is hereby authorized and empowered to enter into contracts of insurance or to make other arrangements for the best interests of the Borough of Green Tree to provide for such reimbursement and/or indemnification.