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<br /> 9.1.1 Pool Assets. The Pool assets: <br /> (a) Shall not be commingled with the assets of any Participating Member; <br />(b) Shall not be loaned to anyone for any purpose or used as security for a loan, <br />except as permitted for investments; <br />(c) Shall be employed solely for the purposes stated in this Membership Agreement <br />and Bylaws, and applicable Minnesota law and rule; and <br />(d) Shall not be considered the property or right of any Participating Member or <br />Covered Person, except for benefits under the Coverage Documents, for declared <br />dividends or distributions, if any, or for its portion of assets remaining after the <br />. <br />9.1.2 Sources of Funds. <br />(a) Except for stop-loss coverage as described below, the Board shall not borrow <br />money, issue debt instruments, or obtain funds through subrogation. <br />(b) The Board may receive funds only from: <br />i. Legal action to collect delinquent debts; <br />ii. Participating Members or jointly and severally liable past Members, as <br />applicable, as Premiums, assessments, and penalties; <br />iii. Its insurers and indemnitors pursuant to applicable agreements; <br />iv. Dividends, interest, or proceeds from the sale of investments; <br />v. Refunds of excess payments; <br />vi. Coordination of benefits with other insurance programs; and <br />vii. Collection of money owed to the Pool. <br />9.1.3 Use of Pool Assets. The Board of Trustees shall expend funds for payment of losses, <br />expenses, andfor other costs customarily borne by insurers under conventional insurance <br />policies in Minnesota, and for any other purpose permitted or provided by applicable law. <br />9.1.4 Reserves. The Board of Trustees shall establish Reserves for all incurred loses, both <br />reported and unreported, and for unearned Premiums. To the extent the amount of loss <br />is uncertain, the reserve shall be set conservatively. As the degree of uncertainty is <br />changed by new events or information, the amount of the reserve shall be modified <br />accordingly. Accounting for Reserves shall be as required by the financial statement forms <br />and instructions under Minnesota Rules, Part 2785.1600, subpart 2. <br />9.1.5 Fidelity Bond. All individuals who handle, or who have authority to gain access to, Pool <br />funds, including Trustees, shall be covered by a fidelity bond or policy of insurance <br />Page 14 of 24 <br /> <br /> <br />