N.Y. Town Law § 178-D
Whenever the fire district commissioners or board of fire commissioners of any fire district, or any fire district officers, have been or shall be instructed by a resolution adopted at a regular special meeting of the board of fire commissioners to defend any action brought against them, or to bring or defend an action or proceeding affecting any district property or claim of the district, or involving its rights or interests, or to continue any such action or defense, all their costs and reasonable expenses, as well as all costs and damages adjudged against them, shall be a district charge and shall be levied upon the taxable property of such district in the same manner as moneys raised for the support of such district. Whenever any fire district commissioner or fire district officer shall defend any action or proceeding, other than a criminal proceeding, hereafter brought against him, arising out of the exercise of his powers or the performance of his duties, provided such commissioner or officer was acting in the discharge of his duties and within the scope of his authority at the time damages were sustained, all his reasonable costs and expenses, as well as all costs and damages adjudged against him, shall be a district charge and shall be levied upon the taxable property of such district in the same manner as money raised for the support of such district, provided (a) such fire district commissioner or fire district officer shall notify the board of fire commissioners in writing of the commencement of such action or proceedings against him within five days after service of process upon him; and (b) the board of fire commissioners shall, at any time during the ten days next following the notice to them of the commencement of such action or proceedings, have the right to designate and appoint the legal counsel to represent such fire district commissioner or fire district officer in such action or proceedings against him, in the absence of which designation and appointment within the time specified such fire district commissioner or fire district officer may select his own legal counsel.
N.Y. Town Law § 178-D