Section 8-B420. INSURANCE AND HAZARD RESERVE FUND

 

420.1A Trustee Insurance and Hazard Reserve Fund (also referred to in this section as the "Fund") shall be established to provide protection against loss or damage to buildings, facilities, and their physical contents which are owned, operated, leased, or held in trust by the Board or a trustee of the University.

 

420.2Protection may be accomplished by the investment and retention of the Fund as a reserve or by the payment from the Fund of the cost of insurance premiums for insurance which the University is required to carry or which the Board determines to carry.

 

420.3Each year, the premiums required to be paid by law or by contract with the University shall be paid from the Fund.

 

420.4Each fiscal year, an amount equal to not less than four dollars ($4) per thousand dollars ($1,000) of sound valuation of all buildings, facilities, and their physical contents owned, operated, leased, or held in trust by the Board or a trustee of the University shall be paid into the Fund, subject to the requirements of §420.5.

 

420.5The total sum paid into the Fund in each fiscal year shall always be equal to or greater than the sum necessary to pay the premiums on insurance required to be carried either by law or by contract with the University.

 

420.6The Fund may be invested and reinvested in direct obligations of the United States government or obligations unconditionally guaranteed by the United States government. All income and increments from the investments shall become a part of the Fund.

 

420.7If at any time the value of the total assets of the Fund, other than those sums in the Fund representing amounts necessary to pay all premiums required by law or by contract, exceeds fifty dollars ($50) per thousand dollars ($1,000) of sound valuation of all buildings, facilities, and their physical contents not covered by insurance, the amount to be paid into the Fund during any fiscal year while this condition exists may be reduced to the amount required to be paid either by law or by contract.

 

420.8Withdrawals from the Fund shall be made only to pay premiums, for investment or reinvestment purposes, or to reimburse the Board for loss or damage not otherwise reimbursed.

 

420.9The amount of withdrawal for reimbursement of any loss or damage shall not exceed an amount which, when added to any proceeds of insurance received by the Board on account of the loss or damage, equals the replacement cost of the damaged or destroyed buildings, facilities, or physical contents.

 

420.10Any withdrawal for the reimbursement of loss or damage shall be made only upon order of the Board.