§ 6-m. Unemployment insurance payment reserve fund. 1. The governing
board of any municipal corporation, school district, board of
cooperative educational services, or fire district which has elected to
become liable for payments in lieu of contributions required of
employers liable for contributions under article eighteen of the labor
law may establish a reserve fund to be known as an unemployment
insurance payment reserve fund.

2. There may be paid into such fund (a) such amounts as may be
provided therefor by budgetary appropriations, (b) amounts from any
other fund authorized by this chapter by resolution subject to
permissive referendum, and (c) such other funds 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 governing board, or
the chief fiscal officer of such municipality, school district, board of
cooperative educational services, or fire district, if the governing
board shall delegate such duty to him, may invest the moneys in such
fund in the manner provided by 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 as required by law
to pay into the unemployment insurance fund an amount equivalent to the
amount of benefits paid to claimants and charged to the account of such
municipal corporation, school district, board of cooperative educational
services, or fire district in accordance with the provisions of
paragraph (e) of subdivision one of section five hundred eighty-one of
the labor law.

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, board of cooperative
educational services, or fire district shall, after the establishment of
such fund, terminate its election to become liable for payments in lieu
of contributions, 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
pending claims.