DATED: 1987

Legislative Intent: The Montgomery County Board of Supervisors
wishes to establish an Insurance Reserve Fund for the purposes of
payments of judgments, actions and claims against the County for
which the County is authorized or required to purchase or maintain
insurance. The fund shall be established within the County's budgetary
appropriations in an account from which expenditures may
be authorized. Such Insurance Reserve Fund will not be utilized
to cover risks for the following types of insurance: life,
annuities, accident, health, fidelity, surety, credit, title,
residual value, mortgage guaranty or unemployment or for which
the County has authority to establish a reserve fund under any
other provisions of law.

Section I. Definitions:
“Judgments”, “actions” and “claims”, as used in
this Local Law, shall mean those judgments, actions and
claims against the County that arise out of those kinds
of risks for which expenditures may be made pursuant to
the Legislative intent of this Local Law.

Section II. Insurance Reserve Fund:
The Montgomery County Board of Supervisors hereby
establishes a reserve fund to be known as the Insurance
Reserve Fund. Upon the creation of the fund, the County
may make expenditures from the fund for any loss, claim,
action or judgment for which the County is authorized or
required to purchase or maintain insurance, except those
kinds of risks for which insurance is authorized pursuant
to paragraph one, two, three, sixteen, seventeen, eighteen,
twenty-two or twenty-three of subsection (a) of section one
thousand one hundred thirteen of the Insurance Law; provided
however, that the County does not make an expenditure from
such fund for any loss, claim, action or judgment for Which
the County has authority to establish a reserve fund under
any other provision of law or for payments In lieu of contributions
under article eighteen of the Labor Law.

Section III. Maintenance of the Fund:
A. There may be paid into such fund:
1. Such amounts as may be provided by budgetary
appropriations;
2. Amounts from any other fund authorized by
Resolution of the Board of Supervisors subject
to permissive referendum; and
3. Such other funds as may be legally appropriated.
B. The amount paid into such fund during any fiscal year
shall not exceed the greater of thirty-three thousand
dollars or five per centum of the total budget for
such fiscal year •
C. The moneys in such fund shall be deposited in one
or more of the banks or trust companies designated
in the manner provided by law as depositories of
the funds of the County. The County Treasurer may
invest the moneys in such fund in obligations specified
in section six-f of General Municipal Law. Any
interest earned or capital gain realized on the
money so deposited or invested shall accrue to and
become part of such fund. '
D. The County Treasurer shall account for this fund
separate and apart from all other funds of the County.
Such accounting shall show: the source, date and
amount of each sum paid into the fund; the interest
earned by such fund; capital gains or losses resulting
from the sale of investments of this fund; the
order, purpose thereof date and amount of each payment
from this fund; the assets of the fund, indicating
cash balance; and a schedule of investments. The
County Treasurer, within sixty days of the end of
each fiscal year, shall furnish a detailed report of
the operation and condition of this fund to the Board
of Supervisors. The County Treasurer shall also keep
a separate account for each kind of risk funded.
E. Notwithstanding any provision of law to the contrary,
the County shall not have the power to enter into
agreements with other municipalities to pool a reserve
fund established for the payment of judgments,
actions and claims.
F. Any action or claim shall be compromised or settled
by the Board of Supervisors, officer or employee of
the County authorized to settle or compromise actions
or claims on behalf of the County.
G. An expenditure may be made from this fund for the
payment of all or part of the cost, including interest,
of:
1. Judgments;
2. Actions that have been compromised or settled
and that have been approved by the court in which
the action or proceeding is pending;
3. Claims that have been settled or compromised and
that have been approved by a justice of the
supreme court of the judicial district in which
the County is located;
4. The uninsured portion of any loss if such loss
arises out of a kind of risk described in Section
II. of this Local Law;
5. Expert or professional services rendered in connection
with the investigation, adjustment or
settlement of claims, actions or judgments.
H. The order of the court or the justice approving such
settlement or compromise may be granted upon motion
of the Board of Supervisors, officer or employee of
the County authorized to do so, supported by an affidavit
setting forth the cause of action or claim against
the County and also such other information which, in
its or his opinion, will enable the court or justice
to arrive at a determination that such compromise or
settlement is just, reasonable and to the interest of
the County. Such Board of Supervisors, officer or
employee may also present the affidavit of other persons
in support of such motion. The court or the
justice, in order to arrive at such a determination,
may require the Board of Supervisors, officer or
employee to present additional information by a supplementary
affidavit or affidavits or may require other
persons to present additional information by their
affidavits.
I. Notwithstanding subdivisions F. and G. of this Section
or any other provision of law to the contrary, the Board
of Supervisors may, without judicial approval, compromise
or settle any action or claim and make an expenditure
from this fund where the amount of such settlement or
compromise does not exceed twenty-five thousand dollars.
J. The members of the Board of Supervisors shall be
guilty of a misdemeanor if they:
1. Authorize a withdrawal from this fund for any
purpose except as provided in this section; or
2. Expend any money withdrawn from this fund for
a purpose other than as provided in this Section.
K. If, after the establishment of such fund, the Board
of Supervisors determines that such fund is no longer
needed, the moneys remaining in such fund may be transferred
to any other reserve fund of the County that
is comprised of moneys which were raised on the same
tax base as the moneys in the reserve fund established
under this Section, only to the extent that the moneys
in this fund shall exceed the sum sufficient to pay
all liabilities incurred or accrued against it. Prior
to the discontinuance of such fund, the fiscal and legal
officers of the County shall certify to the Board of
Supervisors the amount that may be necessary to retain
in such fund to satisfy all liabilities incurred or
accrued against it and such sum shall be retained in
the fund for payment of such amounts or until later
certified that such funds are no longer needed.

Section IV. Saving Clause:
If any clause, sentence, paragraph, section or part
of this Local Law shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment, decree
or order shall not affect, impair or invalidate the remainder
thereof, but shall be confined in its operation to
the clause, sentence, paragraph, subdivision, section or
part thereof directly involved in the controversy in which
the remainder of this Local Law shall not be affected thereby
and shall remain in full force and effect.

Section V. Effective Date:
This Local Law shall take effect within 20 days or
upon it being filed with the Secretary of State of the State
of New York •