§ 6-n. Insurance reserve fund. 1. a. "Municipal corporation," as used\nin this section, shall mean a municipal corporation, as defined in\nsection two of this chapter, school district, except a school district\nin a city with a population of one hundred twenty-five thousand or more,\nboard of cooperative educational services, fire district, a district\ncorporation and a special improvement district governed by a separate\nboard of commissioners.\n b. "Judgments", "actions" and "claims", as used in this section, shall\nmean those judgments, actions and claims against the municipal\ncorporation that arise out of those kinds of risks for which\nexpenditures may be made pursuant to subdivision two of this section.\n 2. (a) The governing board of any municipal corporation may establish\na reserve fund to be known as the insurance reserve fund. Upon the\ncreation of the fund, the municipality may make expenditures from the\nfund for any loss, claim, action or judgment for which the municipal\ncorporation is authorized or required to purchase or maintain insurance,\nexcept those kinds of risks for which insurance is authorized pursuant\nto paragraph one, two, three, fifteen, sixteen, seventeen, eighteen,\ntwenty-two or twenty-three of subsection (a) of section one thousand one\nhundred thirteen of the insurance law, or for payments in lieu of\ncontributions under article eighteen of the labor law; provided however,\nthat no municipality shall make an expenditure from such fund for any\nloss, claim, action or judgment for which the municipal corporation has\nestablished a reserve fund under any other provision of law; provided,\nfurther that the Scarsdale union free school district, the Mamaroneck\nunion free school district, the Minisink Valley central school district,\nthe Vernon Verona Sherrill central school district, the Ithaca city\nschool district, the Kenmore-Town of Tonawanda union free school\ndistrict, the Bedford central school district, the Grand Island central\nschool district, the Tonawanda city school district, the enlarged city\nschool district of Middletown, the Frontier central school district, the\nOwego Apalachin central school district, the Maine-Endwell central\nschool district, the Binghamton city school district, the Candor central\nschool district, the Cleveland Hill union free school district, the\nDepew union free school district, the Iroquois central school district,\nthe Liverpool central school district, the Auburn enlarged city school\ndistrict, the Carmel central school district, the Clarence central\nschool district, the Fulton city school district, and the Canastota\ncentral school district may establish insurance reserve funds in\ncompliance with this section and article seventy-four of the education\nlaw and such school districts may make expenditures in compliance with\nthis section and article seventy-four of the education law from such\nreserve fund for any loss, claim, action or judgment for which the\nschool districts are authorized or required to purchase or maintain\ninsurance for the kinds of risks for which insurance is authorized\npursuant to paragraph three of subsection (a) of section one thousand\none hundred thirteen of the insurance law.\n (b) Notwithstanding any other provision of law to the contrary, where\na municipal corporation has previously established a reserve fund under\nanother provision of law for a type of risk for which expenditures may\nbe made under paragraph (a) of this subdivision, the municipal\ncorporation may, by resolution, discontinue such other reserve fund and\ntransfer any unexpended balance to the reserve fund established under\nthis section; provided, however, that to the extent such unexpended\nbalance is subject to any liabilities incurred or accrued against the\nother reserve fund, any unexpended balances so transferred shall only be\nused for such incurred or accrued liabilities including expenses in\nconnection therewith. Prior to the discontinuanc
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