MARVIN MANDEL, Governor

1153

ACCOUNT." THE OPERATING ACCOUNT SHALL CONSIST ONLY OF
THOSE ASSETS NECESSARY FOR THE ADMINISTRATION OF THE
INSURANCE FUND DURING THE NEXT ENSUING TWO-YEAR PERIOD.
THE CLAIMS ACCOUNT SHALL CONTAIN ALL MONEYS NOT INCLUDED
IN THE OPERATING ACCOUNT AND SHALL NOT EXCEED THE AMOUNT
REASONABLY ESTIMATED TO BE SUFFICIENT TO PAY ALL
LEGITIMATE CLAIMS ON THE INSURANCE FUND FOR A PERIOD OF
THREE YEARS. AT ANY TIME WHEN THE CLAIMS ACCOUNT HAS
REACHED ITS MAXIMUM LIMIT OR WOULD REACH ITS MAXIMUM
LIMIT BY THE ADDITION OF MONEYS REQUESTED FOR
APPROPRIATION BY THE PARTY STATES, THE GOVERNING BOARD
SHALL REDUCE ITS BUDGET REQUESTS ON A PRO RATE BASIS IN
SUCH A MANNER AS TO KEEP THE CLAIMS ACCOUNT WITHIN SUCH
MAXIMUM LIMIT. ANY MONEYS IN THE CLAIMS ACCOUNT BY
VIRTUE OF CONDITIONAL DONATIONS, GRANTS OR GIFTS SHALL BE
INCLUDED IN CALCULATIONS MADE PURSUANT TO THIS PARAGRAPH
ONLY TO THE EXTENT THAT SUCH HONEYS ARE AVAILABLE TO MEET
DEMANDS ARISING OUT OF CLAIMS.

(D)    THE INSURANCE FUND SHALL NOT PLEDGE THE CREDIT
OF ANY PARTY STATE. THE INSURANCE FUND MAY MEET ANY OF
ITS OBLIGATIONS IN WHOLE OR IN PART WITH MONEYS AVAILABLE
TO IT UNDER SECTION 5-704(G) OF THIS COMPACT, PROVIDED
THAT THE GOVERNING BOARD TAKES SPECIFIC ACTION SETTING
ASIDE SUCH MONEYS PRIOR TO INCURRING ANY OBLIGATION TO BE
MET IN WHOLE OR IN PART IN SUCH MANNER. EXCEPT WHERE THE
INSURANCE FUND MAKES USE OF MONEYS AVAILABLE TO IT UNDER
SECTION 5-704(G) HEREOF, THE INSURANCE FUND SHALL NOT
INCUR ANY OBLIGATION PRIOR TO THE ALLOTMENT OF MONEYS BY
THE PARTY STATES ADEQUATE TO MEET THE SAME.

(E)    THE INSURANCE FUND SHALL KEEP ACCURATE
ACCOUNTS OF ALL RECEIPTS AND DISBURSEMENTS. THE RECEIPTS
AND DISBURSEMENTS OF THE INSURANCE FUND SHALL BE SUBJECT
TO THE AUDIT AND ACCOUNTING PROCEDURES ESTABLISHED UNDER
ITS BYLAWS. HOWEVER, ALL RECEIPTS AND DISBURSEMENTS OF
FUNDS HANDLED BY THE INSURANCE FUND SHALL BE AUDITED
YEARLY BY A CERTIFIED OR LICENSED PUBLIC ACCOUNTANT AND A
REPORT OF THE AUDIT SHALL BE INCLUDED IN AND BECOME PART
OF THE ANNUAL REPORT OF THE INSURANCE FUND.

(F)    THE ACCOUNTS OF THE INSURANCE FUND SHALL BE
OPEN AT ANY REASONABLE TIME FOR INSPECTION BY DULY
AUTHORIZED OFFICERS OF THE PARTY STATES AND BY ANY
PERSONS AUTHORIZED BY THE INSURANCE FUND.

5-710. ENTRY INTO FORCE AND WITHDRAWAL.

(A)    THIS COMPACT SHALL ENTER INTO     FORCE WHEN
ENACTED INTO LAW BY ANY FIVE OF MORE STATES.      THEREAFTER,
THIS COMPACT SHALL BECOME EFFECTIVE AS TO ANY   OTHER STATE
UPON ITS ENACTMENT THEREOF.

(B)    ANY PARTY STATE MAY WITHDRAW FROM THIS COMPACT
BY ENACTING A STATUTE REPEALING THE SAME, BUT NO SUCH
WITHDRAWAL SHALL TAKE EFFECT UNTIL TWO YEARS AFTER THE
EXECUTIVE HEAD OF THE WITHDRAWING STATE HAS GIVEN NOTICE
IN WRITING OF THE WITHDRAWAL TO THE EXECUTIVE HEADS OF