4AReserve fund

4A Reserve fund

4A Reserve fund

The board may set aside from time to time a portion not exceeding twenty per centum of any moneys received by it by way of commission or otherwise for the effecting of insurance on the lives of permanent servants as elsewhere provided in this Act and place such portion to a reserve account.

Interest derived from the investment of the reserve account shall form part thereof.

The board may use the income and capital of such reserve account in making payments of premiums on the policy of a permanent servant who may be temporarily out of a council’s employment, or to secure the surrender value of a policy and making payments to councils and permanent servants pursuant to paragraph (f) of subsection (4) of section 4. Any payments so made together with interest at the prescribed rate shall be a charge on any policy moneys coming to the hands of the board on such surrender.

The board may at any time in its discretion pay from such reserve account any amount which it deems to be in excess of its requirements for the above purposes to its management account.

s 4A: Ins 1935 No 24, sec 3 (1) (b). Am 1975 No 101, Sch 1 (1).