(A) The city shall provide for the defense of any elected official in any action in tort arising out of an act or omission occurring within the scope of his office.
(B) The city shall pay any judgment based thereon or any compromise or settlement of any such action in tort except as provided in subsection (C).
(C) The city may refuse to pay a judgment or settlement in any action against an elected official, or if the city pays any claim or judgment against any elected official pursuant to subsection (B), it may recover against the official the amount of the payment and the cost to defend it:
(1) If the elected official failed to act because of fraud, malice, or corruption;
(2) If the action was outside the apparent scope of his duties; or
(3) If the elected official willfully refused to assist in the defense or the cause of action in good faith.