Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. There is hereby established in the town of Mendon a Land Bank Fund for the purpose of acquiring, reclaiming, holding and managing land, conservation easements and interests in lands for open space and recreation that is consistent with the town's most recent open space and recreation plan.

SECTION 2. The town of Mendon shall establish a Land Bank Fund as a separate account to be maintained by the treasurer. The following monies shall be deposited into the account: (a) any gifts made to the town for the express purpose of acquiring land for the purpose set forth in section 1; and (b) any funds appropriated from time to time by town meeting to this fund. The treasurer may invest the funds in such separate account in the manner authorized by sections 55 and 55A of chapter 44 of the General Laws.

Any interest earned thereon shall be credited to and become part of such account. The town may appropriate, by a vote of the town meeting, monies from said Land Bank Fund for the purpose of acquiring, reclaiming, holding and managing land, conservation easements and interests for open space and recreation.

SECTION 3. The treasurer shall without further appropriation transfer to the Land Bank Fund established in section 1 from the stabilization fund maintained by the town, pursuant to section 5B of chapter 40 of the General Laws, the amount of $350,000, which is the portion remaining of the amount appropriated to the stabilization fund under Article 1 of the special town meeting held on December 8, 1999.

SECTION 4. This act shall take effect upon its passage.