(a) through the failure of the officers, clerks and employees covered thereunder faithfully to perform their duties or to account properly for all moneys or property received by virtue of their positions or employment, and

(b) through fraudulent or dishonest acts committed by the officers, clerks and employees covered thereunder. Notwithstanding any provisions of the civil practice law and rules any such blanket undertaking entered into prior to January first, nineteen hundred eighty-three may contain a provision that no suit, action or proceeding of any kind to recover on account of loss under such blanket undertaking shall be brought after the expiration of three years from the cancellation of such blanket undertaking as an entirety. Any such blanket undertaking shall be approved as to its form, manner of execution and sufficiency of the surety and filed and the expense of procuring such surety paid in the same manner as provided in subdivision one of this section. The failure to execute such blanket undertaking in the form required by law, or the omission of the approval required by law, shall not affect the liability of the surety thereon. 3. Nothing herein contained shall be construed to prevent the procuring of a blanket undertaking to cover the liability of employees handling funds collected pursuant to the provisions of section fifty of the vehicle and traffic law. 4. Notwithstanding the provisions of this section or any other law, general or special, requiring an official undertaking or bond to be conditioned substantially to the effect that a state officer, clerk or employee will faithfully discharge his duties and promptly account for and pay over all moneys or property received by him in his official capacity, the comptroller may, in his discretion, waive the requirement of procuring such official undertaking or bond, and the expense of procuring an official undertaking or bond shall not be a charge upon the state unless the comptroller shall first have approved the necessity of requiring such official undertaking or bond.