Common use of Surplus Funds Clause in Contracts

Surplus Funds. In the event that MEMBER CONTRIBUTIONS exceed claims and expenses for the FUND, the BOARD, shall first apply the SURPLUS FUNDS to the mandatory reserve. Should the reserve exceed the BOARD’S established funding target, the BOARD may, in its sole discretion, apply SURPLUS FUNDS toward the CONTRIBUTIONS of MEMBERS for any subsequent year, and/or fund any other necessary and proper cost, liability and/or expense of the POOL. Additionally, the BOARD may refund to its MEMBERS all or some portion of the excess payments, if any, made by its MEMBERS to the POOL, which reimbursement may be based on each MEMBER’S and the POOL’S loss experience and such other factors as the BOARD deems appropriate under the circumstances. The BOARD shall determine the amount of SURPLUS FUNDS, if any, as of December 31 of each year hereunder on or before April 1 in each succeeding year, and shall promptly communicate this information to each MEMBER.

Surplus Funds. In the event that MEMBER CONTRIBUTIONS member contributions exceed claims and expenses for the FUND, the BOARD, shall first apply the SURPLUS FUNDS surplus funds to the mandatory reserve. Should the reserve exceed the BOARD’S established funding target, the BOARD board may, in its sole discretion, apply SURPLUS surplus FUNDS toward the CONTRIBUTIONS of MEMBERS for any subsequent year, and/or fund any other necessary and proper cost, liability and/or expense of the POOL. Additionally, the BOARD may refund rebate to its MEMBERS all or some portion of the its excess payments, if any, made by its MEMBERS to the POOL, which reimbursement may be based on each MEMBER’S and the POOL’S loss experience and such other factors as the BOARD deems appropriate under the circumstances. The BOARD shall determine the amount of SURPLUS FUNDS, if any, as of December 31 of each year hereunder on or before April March 1 in each succeeding year, and shall promptly communicate this information to each MEMBER.