(1) The Sinking Fund Commission shall continue to administer the funds now in the Insurance Fund and such other funds as may from time to time be added thereto from income or by appropriation of Council, and shall:

(a) hold and invest such funds as other moneys in its charge and keeping are held and invested;

(b) keep a separate account thereof as an Insurance Fund of the City;

(c) accumulate said fund until it shall amount to the sum of $750,000;

(d) retain such fund as a permanent insurance fund to be used and applied, either before or after it shall reach such amount, for the repair, rebuilding, and replacement of any real or personal property of the City which may be injured or destroyed by fire, lighting, marine disaster, wind, storm, tornado, or explosion or otherwise as an incident thereto.

(2) Whenever destruction or injury of any real or personal property owned by the City shall result from fire, lighting, marine disaster, wind, storm, tornado, explosion, or accident, the Sinking Fund Commission shall pay from the insurance fund to such City agency or agencies as may be charged with the rebuilding, repair, or replacement of property so injured or destroyed, such sum or sums as may be necessary for such rebuilding, repair, or replacement.

(3) When and if such insurance fund shall exceed the sum of $750,000, such excess shall be used by the Sinking Fund Commission either:

(a) to pay the bonded indebtedness of the City; or

(b) to purchase and cancel outstanding bonds; or

(c) to be held for the general purposes of the Sinking Fund Commission for ultimate application to the discharge of the City's indebtedness.