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

Notwithstanding any general or special law to the contrary, the town of Holbrook may establish and maintain a special fund to be known as the Capital Improvement Fund. The town may appropriate to the fund by a majority vote of an annual or special town meeting in any year an amount not to exceed 10 per cent of the amount raised in the preceding year by taxation of real estate and tangible personal property. The aggregate amount of the Capital Investment Fund at any one time shall not exceed 10 per cent of the equalized valuation of the town of Holbrook as defined in section 1 of chapter 44 of the General Laws. Any interest earned on the fund shall be added to and become part of the fund.

The treasurer of the town shall be the custodian of the fund and may deposit the proceeds in national banks or invest the proceeds by deposit in savings banks, co-operative banks or trust companies organized under the laws of the commonwealth or invest the same in such securities as are legal for the investment of savings banks under the laws of the commonwealth or in federal savings and loan associations situated in the commonwealth. These funds shall be protected by an insured investment vehicle.

The Capital Investment Fund may be appropriated at any annual town meeting or a special meeting by a 2/3 vote. The fund may be appropriated for any purpose for which the town would be authorized to borrow money under section 7 or 8 of chapter 44 of the General Laws, including, but not limited to, the payment of capital improvement assessments by regional school districts, and to fund purchases of capital items. Any proposal for appropriation from the fund shall be submitted to the Holbrook capital improvement committee in accordance with the town of Holbrook by-laws regarding capital improvements.