(a) Unless otherwise prohibited by law, and upon his or her request, the Town shall defend an elected town public official, both present and former, who is, or could be, subject to personal civil liability for a loss occurring because of a noncriminal act or omission committed within the scope of his or her official acts of authority, including any alleged violation of civil rights of the United States and State of Indiana.

(b) The Town attorney shall defend a present or former elected town public official against a claim or suit described in this section. In the event the Town attorney would or might have a conflict of interest in doing so, the Town attorney, with the advice and direction of the Town Council, shall designate other counsel for the defense of said elected town public official.

(c) Unless otherwise prohibited by law, or unless the Town determines that the elected town public official acted in bad faith, the Town shall pay the judgement, compromise or settlement arising out of the case of a claim or suit against such an elected town public official.

(d) The right to compromise or settle the case of a claim or suit against an elected town public official is retained and reserved exclusively by the Town. In the event that the elected town public official will not join in a compromise or settlement which would hold the elected town public official harmless from any liability arising out of said claim or suit, the Town shall be entitled to withdraw its defense for the elected town public official and shall not be obligated to pay any subsequent judgement, compromise or settlement on behalf of said elected town public official. The elected town public official for whom the Town has undertaken a defense shall be required to cooperate in all respects with the actions of the Town to defend and indemnify that elected town public official. In the event that an elected town public official for whom the Town has undertaken a defense and provided indemnification fails or refuses to cooperate in any respect with the defense and indemnification activities of the Town, then the Town shall be entitled to withdraw its defense for the elected town public official, and shall not be obligated to pay any subsequent judgement, compromise or settlement on behalf of said elected town public official.

(e) Nothing herein shall constitute or be construed as a waiver of any right or defense of the Town or its elected public officials, nor shall it constitute a consent to be sued.