(a) Notwithstanding the failure of a cooperative to provide indemnification, and despite any contrary resolution of the board or of the members in the specific case under section twenty-six of this article, indemnification shall be awarded by a court to the extent authorized under section twenty-five of this article, and subdivision (a) of section twenty-six of this article. Application therefor may be made, in every case, either:

1. (1) in the civil action or proceeding in which the expenses were incurred or other amounts were paid, or
2. (2) to the supreme court in a separate proceeding, in which case the application shall set forth the disposition of any previous application made to any court for the same or similar relief and also reasonable cause for the failure to make application for such relief in the action or proceeding in which the expenses were incurred or other amounts were paid.