Section 124.00. Bonds for pensions; ascertainment of amount thereof to be excluded

a. As used in this section, the  term  "accrued  liabilities"  shall  mean  the  liabilities  of a pension or retirement system or fund
  accrued,  both  on  account  of  pensioners  on  the  pension  roll  and
  prospective  pensions to dependents of such pensioners and on account of
  prior service of active members of such system or fund, on the  date  of
  issuance of bonds to place such system or fund on a solvent basis.
    b.   In   ascertaining   the  power  to  contract  indebtedness  of  a
  municipality which maintains a pension or retirement system or fund on a
  solvent basis, there may be excluded  outstanding  serial  bonds  issued
  subsequent  to  January  first,  nineteen  hundred  thirty-nine, by such
  municipality to place such pension or retirement system  or  fund  on  a
  solvent basis.
    c.  1.  In  relation to bonds to be issued subsequent to the effective
  date of this chapter, to place a pension or retirement system or fund of
  a municipality on a solvent basis, prior to the issuance of such  bonds,
  the  finance  board  of  such municipality shall submit a request to the
  superintendent of insurance to ascertain the amount of such bonds  which
  may  be issued for such purpose. Such request shall indicate whether the
  municipality proposes to deposit in such system or fund  such  bonds  or
  the proceeds of such bonds. Such request shall be in such form and shall
  contain  such  additional  information  as  shall  be  prescribed by the
  superintendent of insurance.
    2. Upon the receipt of such request, the superintendent  of  insurance
  forthwith  shall  review  the facts set forth therein. He shall have the
  power to examine the accounts and records of such system or fund and  of
  the  municipality  with  respect  thereto. He may also require the chief
  fiscal officer and other public officers, boards and agencies to furnish
  such additional data and information as he deems necessary to enable him
  to make his determination.
    3. The superintendent of  insurance  shall  thereupon  issue  to  such
  municipality  a  certificate setting forth the amount of bonds which may
  be  issued,  which  shall  not  exceed,  in  the  aggregate,  an  amount
  sufficient to provide for the payment of the accrued liabilities of such
  system or fund. If the bonds are to be deposited in such system or fund,
  such certificate shall also set forth the interest rate or rates on such
  bonds and the maturities thereof necessary to provide for the payment of
  such accrued liabilities.
    4.  Upon  the  issuance  of  such  bonds,  such  bonds or the proceeds
  thereof, in accordance with the  statement  in  the  request,  shall  be
  deposited  in  such system or fund. Such system or fund shall thereafter
  be maintained on a solvent basis.
    d. Any time after there have been deposited in a pension or retirement
  system or fund, bonds  issued  subsequent  to  January  first,  nineteen
  hundred thirty-nine, to place such system or fund on a solvent basis, or
  the proceeds of such bonds, the chief fiscal officer of the municipality
  issuing  such bonds, if he is of the opinion that such fund or system is
  solvent may, in his discretion, file a financial statement of such  fund
  or  system  with  the  superintendent  of  insurance  for the purpose of
  obtaining the exclusion referred to in  paragraph  b  of  this  section.
  Such  statement shall be in such form and shall contain such information
  as shall be prescribed by the superintendent of insurance to enable  him
  to  determine  whether  or  not  such  fund  or  system is solvent. Such
  statement  shall  be  verified  by  the  chief  fiscal  officer  of  the
  municipality.
    e.  Upon the receipt of such a financial statement, the superintendent
  of insurance forthwith shall review the  facts  set  forth  therein.  He
  shall  have the power to examine the accounts and records of such system

  or fund and of the  municipality  with  respect  thereto.  He  may  also
  require  the  chief fiscal officer and other public officers, boards and
  agencies to furnish such additional data and  information  as  he  deems
  necessary to enable him to make his determination.
    f.  The  superintendent of insurance shall issue a written certificate
  setting forth his determination as to whether or not such bonds  may  be
  excluded.   If  the  exclusion  is  allowed  by  the  superintendent  of
  insurance, such certificate shall also state the amount of bonds  to  be
  excluded  and  shall  constitute  the authorization for the exclusion of
  such bonds in ascertaining the power of such  municipality  to  contract
  indebtedness.    Such certificate shall be effective for a period of one
  year from the date thereof. If the superintendent of insurance disallows
  the claim of the municipality for the exclusion, he shall set forth  the
  reasons  for  such disallowance. The determination of the superintendent
  of insurance shall be conclusive.
    g. Certificates issued by the superintendent of insurance pursuant  to
  this  section  shall  be executed under his hand and seal in triplicate.
  One of such triplicates shall be filed in the department  of  insurance,
  one  in the department of audit and control and one in the office of the
  chief fiscal officer of the municipality. All such triplicates shall  be
  public records.