Section 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 section
  fifty,  subdivision  four  of  the workmen's compensation law or section
  thirty of the volunteer firemen's benefit law may  establish  a  reserve
  fund  to  be  known  as  the workmen's 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 workmen's compensation law and  by  the  volunteer
  firemen's  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.