A. The Village shall indemnify any officer or employee, or former officer or employee, for damages awarded against him as required by statute, and in cases of other claims or actions for an act or omission made in good faith occurring within the scope of his employment, the Village may indemnify him for damage awarded or monies paid in compromise or settlement, in such amounts as the President and Board of Trustees, in their sole discretion, shall determine. No indemnification shall be made where there is adequate insurance, nor where there is a finding of guilty in a criminal or quasi-criminal case and fines or penalties are assessed, nor where there is a finding of malice or wilful misconduct in a civil action.
B. The Village may, at the request of an officer or employee, or former officer or employee, appoint counsel to appear and defend him and pay costs or may reimburse said officer or employee for reasonable attorney fees and costs expended by him, upon the following conditions:
1. If any claim or action or investigation, either civil or criminal in nature, is instituted against an officer or employee, or former officer or employee, of the Village where such claim or action arises out of:
a. An act or omission made in good faith occurring within the scope of his employment.
b. An investigation by the Federal government, any state or municipality, or agency thereof, involving the officer or employee in the nature of his duties or actions as such officer or employee of the Village.
c. An investigation of any officer or employee by the Federal government, any state or municipality, or agency thereof, by reason of his office or employment in the Village.
d. An investigation of any other officer or employee by the Federal government, any state or municipality, or agency thereof, to which such officer or employee may be subjected to by reason of another officer's or employee's duties or actions as such Village officer or employee.
2. No officer or employee shall be entitled to appointed counsel or reimbursement when his action was done with malice or wilful misconduct or in equal guilt with the officer or employee concerned. No officer or employee shall have further use of appointed counsel or be reimbursed where there is a finding of guilty against him in a criminal or quasi-criminal action or malice or wilful misconduct in a civil action.
3. The appointment of counsel and payment of costs or reimbursement shall not be a matter of right of any officer or employee, but is a matter in the sole discretion of the President and Board of Trustees and shall cover only those duties or actions committed within the course of employment or by the nature of the office or employment held. Reimbursement may be in whole or any part thereof in the discretion of the President and Board of Trustees. No reimbursement shall be made until the investigation is completed, with further action discontinued by the investigating agency or the court action is terminated.
4. The appointment of counsel shall be made by the President, with the advice and consent of the Board of Trustees. The President, with the consent of the Board of Trustees, may terminate such appointment at any time. (1985 Code § 1-8-8)