whose deposits are insured subject to applicable limits by the Federal Deposit Insurance Corporation, or (ii) in stock or other securities in which the fund would be permitted to invest if it were a capital construction fund subject to the investment limitations of paragraphs (2) and (3) of section 7518(b)(2). (B) All investment earnings (including gains and losses) from investments of the fund become part of the fund. (4) Contributions to the fund The fund does not accept any deposits (or other amounts) other than cash payments with respect to which a deduction is allowable under subsection (a) and earnings (including gains and losses) from fund investments. (5) Purpose The fund is established and maintained for the purposes of covering costs, expenses, and losses (including business interruption losses) resulting from a Federally declared natural disaster to the extent such costs are not covered by insurance. (6) Maximum balance The balance of the fund does not exceed the lesser of— (A) the sum of— (i) 150 percent of the maximum deductible, and (ii) 100 percent of the maximum co-insurance (to the extent not taken into account in clause (i)), that, in the case of a Federally declared natural disaster resulting in losses, the taxpayer could be expected to pay with respect to property and business interruption insurance maintained by the taxpayer for the line of business to which the fund applies and that would cover losses resulting from a Federally declared natural disaster, and (B) the maximum loss under any insurance coverage that the taxpayer could reasonably expect to occur for the line of business in the case of a severe natural disaster. (7) Financial statements The fund or the balance of the fund is recorded in the taxpayer’s financial statements in accordance with generally accepted accounting principles and not as a current asset and the footnotes to the taxpayer’s financial statements include a short description of the fund and its purposes. (8) Insurance The taxpayer property insurance maintained by