Section 55-C. Deposit and investment of and accounting for moneys in reserve funds

1.  The  money in each reserve fund established pursuant to this
  article shall be deposited and secured in the manner provided by section
  ten of the general municipal law.
    2.  The town board or the chief fiscal officer of  the  town,  if  the
  town  board  shall  delegate  such duty to him, may invest the moneys in
  each such reserve fund or, in two or more  such  funds,  in  the  manner
  provided  in  section  eleven of the general municipal law. Any interest
  earned or capital gains realized on the money so deposited  or  invested
  shall  accrue to and become a part of each such fund. Where the money in
  two or more such reserve  funds  are  invested  together,  the  interest
  earned  or  capital gains realized shall be apportioned to each separate
  fund in the same proportion as the amount of  each  fund  bears  to  the
  aggregate amount of the several funds.
    3.    The  chief fiscal officer shall keep a separate account for each
  such fund. Such account shall show:
    (a) The date and amount of each sum paid into the fund.
    (b) The interest earned by such fund.
    (c) The capital gains or losses resulting from the sale of investments
  of the fund.
    (d) The interest or capital gains which have accrued to the fund.
    (e) The amount and date of each expenditure from the fund.
    (f) The assets of the fund, indicating the cash  balance  therein  and
  the schedule of the amounts invested.
    The  chief  fiscal  officer,  at  the termination of each fiscal year,
  shall render a detailed report of the operation and  condition  of  each
  such fund to the town board.
    4.  The members of the town board are hereby declared trustees of each
  such  fund  and  shall be subject to all the duties and responsibilities
  imposed by law on trustees, and such duties and responsibilities may  be
  enforced  by  the  town, or by any board, commission, agency, officer or
  taxpayer thereof.
    5. The members of the town board shall not:
    (a) Authorize an expenditure or withdrawal from any such fund for  any
  purpose  other  than for the financing of an object or purpose which has
  been authorized to be financed in whole or in part from such fund; or
    (b) Expend any money withdrawn from any such fund for a purpose  other
  than that for which it was authorized to be withdrawn.
    Any  violation of this subdivision shall be an offense punishable by a
  civil penalty of not more than one hundred dollars.  The  provisions  of
  this  subdivision  shall  be  considered  to be in addition to any other
  penalties provided by law.