Whenever an officer or employee of the Borough of Edgewater is a defendant in any action or legal proceeding arising out of or incidental to the performance of his duties, the Mayor and Council shall provide the officer or employee with the necessary defense or, at its option, means for the defense of such action or proceeding and shall hold the said officer or employee harmless from any payment, settlement or judgment resulting from the proceedings, except in the following situations:
A.
Where the action has been brought by the municipality itself against the said officer or employee.
B.
Where the officer or employee has been specifically found by the trier of fact in proceedings, civil or criminal, to have acted with actual fraud, actual malice or wilful misconduct.
C.
Where the officer or employee is found to have acted in violation of the Municipal Code of Ethics.