§ 6-j. Workmen's compensation reserve fund. 1. The governing board of
any municipal corporation, school district or fire district, which is,
or shall hereafter become a self-insurer under the provisions of
subdivision four of section fifty of the workers' compensation law or
section thirty of the volunteer firefighters' benefit law may establish
a reserve fund to be known as the workers' compensation reserve fund of
such municipal corporation, school district or fire district.

2. There may be paid into any such fund (a) such amounts as may be
provided therefor by budgetary appropriations and (b) such other sums as
may be legally appropriated.

3. The moneys in such fund shall be deposited and secured in the
manner provided by section ten of this article. The money in such fund
so deposited shall be accounted for separate and apart from all other
funds of the municipality, school district or fire district, in the same
manner as provided in subdivision ten of section six-c of this article.
The governing board, or the chief fiscal officer of such municipality,
school district or fire district, if the governing board shall delegate
such duty to him, may invest the moneys in such fund in the manner
provided in section eleven of this article. Any interest earned or
capital gain realized on the money so deposited or invested shall accrue
to and become part of such fund. The separate identity of such fund
shall be maintained whether its assets consist of cash or investments or
both.

4. An expenditure shall be made from such fund only for the payment of
compensation and benefits, medical, hospital or other expense authorized
by article two of the workers' compensation law and by the volunteer
firefighters' benefit law and expenses of administering the
self-insurance program for such municipal corporation, school district
or fire district.

5. If at the end of any fiscal year the moneys in such fund shall
exceed the amounts required to be paid pursuant to subdivision four of
this section plus any additional amount required to pay all pending
claims, the governing board of the municipal corporation, school
district, board of cooperative educational services or fire district
may, within sixty days of the close of such fiscal year, elect to: (a)
transfer said excess, or any part thereof, to any fund authorized by
this article or section thirty-six hundred fifty-one of the education
law; and/or (b) apply said excess, or any part thereof to the budget
appropriation of the next succeeding fiscal year.

6. If the municipal corporation, school district or fire district
shall, after the establishment of such fund, cease to be a self-insurer,
the moneys remaining in such fund may be transferred to any other fund
authorized by this chapter or section thirty-six hundred fifty-one of
the education law only to the extent that the moneys in such fund shall
exceed in amount the sum sufficient to pay all expenditures authorized
in paragraph numbered four, both accrued and contingent.