Section 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.