(a) The award system shall be administered by the board and the board shall comply with the following requirements:
(1) The board shall maintain a plan as described in Section 457(e)(11) of Title 26 of the United States Code.
(2) The representatives on the board shall be elected.
(3) The representatives on the board shall administer the award system with the reasonable care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with the award system would use in the conduct of an enterprise of a like character and with like aims.
(4) The representatives on the board shall be subject to the prudent investor standard with regard to the fund.
(5) The award system shall be administered for the exclusive purpose of providing benefits to members of the award system.
(6) The board shall select a custodian of the fund, as described in subdivision (j) of Section 50952.
(b) Notwithstanding subdivision (a), the assets of the fund attributable to the benefit of registered volunteers of a department are subject to the claims of creditors of the department in the case of the insolvency of the department. The assets of the fund that are not attributable to the benefits of registered volunteers of an insolvent department are not subject to the claims of the creditors of the insolvent department.
(Repealed and added by Stats. 2007, Ch. 651, Sec. 2. Effective January 1, 2008. Operative March 1, 2008, by Section 50979.)