§ 11-506. Maintenance and Replacement Fund

   (a) In general. -- The Board of Supervisors of the Association shall maintain a Maintenance and Replacement Fund for the replacement and repair of the major equipment of the Association.

(b) Rate set by Board. -- The State Board of Pilots shall determine a percentage of the pilotage fees collected by the Association to be set aside in the Fund.

(c) Approval of expenditures. -- The Board of Supervisors of the Association shall obtain written approval from the State Board of Pilots for any expenditures from the Fund.

(d) Maximum balance. --

   (1) Except as provided in paragraph (2) of this subsection, the balance in the Fund shall remain at or above $ 500,000.

   (2) (i) The balance of the Fund may fall below $ 500,000 for expenditures authorized by the Board.

      (ii) The balance of the Fund may not remain below $ 500,000 for more than 10 consecutive years.

      (iii) At no time shall the balance of the Fund fall below $ 100,000.

(e) Payment into fund. -- The Board of Supervisors of the Association shall deposit the moneys authorized under subsection (b) of this section into the Maintenance and Replacement Fund.

(f) Fund held in trust, management. --

   (1) The Board of Supervisors of the Association shall hold the Maintenance and Replacement Fund in trust.

   (2) The Association:

      (i) may invest or hold the Fund in any manner that the Association finds desirable, in light of the nature and purpose of the Fund;

      (ii) may place control and management of the Fund, or a part of the Fund, with a bank or trust company that is subject to State or federal regulation; and

      (iii) is not limited to investments in property that has been designated, under any law of the State, as strictly suitable for investment of a trust fund.

(g) Fund not subject to attachment or execution. -- Assets held in trust under this section are not subject to attachment or execution.

HISTORY: An. Code 1957, art. 74, § 10; 1989, ch. 3, § 1; 2002, ch. 523, § 2, 3.