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<br />this Agreement, the Board may acquire Program Funds. The Board may, in its discretion, establish
<br />and maintain separate accounts for specified portions of the Program Funds, and may designate
<br />specific purposes, such as the payment and financing of Group Employee Benefits or the stabilization
<br />of the cost of such benefits, for which the amounts credited to such account shall be used, but it shall
<br />not be required to do so.
<br />6.2 General Rules Regarding Management and Disposition of Program Funds.
<br />Program Funds shall be used solely for the purposes of providing Group Employee Benefits and Other
<br />Financial and Risk Management Services, providing related services, defraying the reasonable
<br />expenses of administering such benefits and services, and, if the Board determines that such use
<br />would either directly or indirectly benefit Participants (e.g., by spreading risk, achieving economies
<br />of scale, generating revenues or enhancing the Board's ability to negotiate with Providers as a result
<br />of the Board's visibility, presence in the marketplace or enhanced expertise), establishing, providing
<br />and administering similar benefits and services offered by the joint action of other governmental
<br />units. Program Funds shall not inure to the benefit of the Board; this prohibition shall not,
<br />however, prohibit the payment of service fees to an SC as provided below. Subject to the foregoing,
<br />the Board, in its sole discretion, shall determine the management and disposition of the Program
<br />Funds. The Board may consider Advisory Committee recommendations regarding the use of
<br />Program Funds before any determinations are made. The following are examples of purposes for
<br />which the Board may use and apply Program Funds.
<br />(a) to negotiate the purchase of, administer, provide and maintain (either directly or
<br />through the purchase of insurance, or both) Group Employee Benefits (including, but not limited to
<br />programs related to the purpose for which the Fund was created, such as, for example, in the case of a
<br />Health Pool, an Employee Assistance Program (EAP) and Wellness Program) and Other Financial
<br />and Risk Management Services;
<br />(b) to pay or provide for the payment of reasonable and necessary expenses of
<br />administering Group Employee Benefits and Other Financial and Risk Management Services
<br />including, without limitation, all expenses which may be incurred in connection with the
<br />establishment and administration of Pools, the employment of administrative, legal, accounting, other
<br />expert and clerical assistance, the leasing of such premises and the purchase of lease materials,
<br />supplies, equipment, and liability and property insurance;
<br />
<br />(c) to establish and accumulate funds deemed adequate by the Board to carry out the
<br />purposes of the Pools, for example, for purposes of rate stability and risk reserve;
<br />
<br />(d) to pay any federal, state or local income, employment, death or other tax which may
<br />be properly imposed on or levied against Group Employee Benefit, Other Financial and Risk
<br />Management Service, a Pool, or on benefits paid therefrom;
<br />(e) to pay for any bond and to pay the premiums on any insurance purchased by a Pool,
<br />including, but not limited to liability insurance, "stop loss" insurance and other insurance intended to
<br />pay directly or indirectly the benefits established with respect to a Pool; and
<br />(f) to pay the SC any service fee payable to it pursuant to, or authorized pursuant to, this
<br />Agreement.
<br />
<br />6.3 Investment of Program Funds. Program Funds shall be held and invested in a manner that
<br />is consistent with any applicable legal requirements regarding the holding and investment of funds by
<br />the Participant Members who are governmental units within the meaning of Minn. Stat. 471.59.
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