Section 67.07 - Board of Trustees(1) Each group shall be operated by a board of trustees consisting of at least three persons elected by the members for stated terms of office. At least b of the trustees of any group containing private employers shall be employees, officers or directors of members. All trustees of public employer groups shall be elected officials or employees of public entities within the Commonwealth. No person employed by the administrator of a group, or by any company or organization affiliated with the administrator, shall serve on the board of trustees of any group containing private employers. All trustees shall be residents of the Commonwealth or officers of companies authorized to do business in the Commonwealth.(2) The board of trustees of each group shall ensure that all compensable claims are paid promptly and shall take all necessary precautions to safeguard the assets of the group, including the following: (a) maintain responsibility for all monies collected or disbursed by the group and segregate all monies into a claims fund account and an administrative fund account;(b) designate an administrator to carry out the policies of the board of trustees and to provide day-to-day management of the group. The board shall enter into a written agreement with the administrator, which shall include, but not be limited to, a description of the duties, responsibilities and compensation for the administrator. The written agreement shall be subject to the Commissioner's approval. The group shall demonstrate to the Commissioner's satisfaction, on the administrator's application form required by 211 CMR 67.06(2)(b)3., that any administrator designated by the board of trustees is of good repute, is in sound financial condition and is experienced in the area of workers' compensation claims administration.(3) Funds not needed for current obligations may be invested by the board of trustees in accordance with the provisions of M.G.L. c. 175, § 63, or in mutual funds whose underlying investments comply with M.G.L. c. 175, § 63.(4) The board of trustees shall not: (a) extend credit to individual members for payment of a premium, except pursuant to payment plans approved by the Commissioner or lend money to any person, corporation, or organization for any other purpose without obtaining the prior written approval of the Commissioner;(b) borrow any monies from the group except in the ordinary course of business, without first advising the Commissioner of the nature and purpose of the loan and obtaining prior written approval of the Commissioner.Amended by Mass Register Issue 1320, eff. 8/26/2016.