Political subdivision risk management fund; purpose; administration; expenses; depositories; investment; reserve account

Sec. 10. (a) The political subdivision risk management fund is established for the purpose of: (1) paying the liabilities of political subdivisions to the extent specified in this chapter; (2) receiving assessments paid by political subdivisions to replenish the fund and to pay the principal of and interest on bonds or notes issued by the commission under section 17(b)(2) of this chapter; and (3) receiving money from any other source. (b) The fund shall be administered by the commission. (c) The expenses of administering the fund shall be paid from money in the fund. (d) All money received by the commission under this chapter, whether as assessments, proceeds from the sale of bonds, or revenues, are trust funds, to be held and applied solely as provided in this chapter. Current operating funds shall be kept in depositories selected by the commission. The commission shall deposit with the treasurer of state the money in the fund not currently needed to meet the obligations of the fund, and the treasurer of state shall invest such money for the commission in accordance with the provisions of any resolution or trust agreement that the commission adopts or enters into under this chapter. Interest that accrues from these investments shall be credited to the commission and to the fund. (e) Money in the fund at the end of a particular fiscal year does not revert to the state general fund. (f) The commission shall create a reserve account in the fund and shall capitalize the reserve account through the surcharges levied under section 7(b)(10) of this chapter.