Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Notwithstanding the provisions of any general or special law to the contrary, the town of Hadley may appropriate in each fiscal year an amount not exceeding one-twentieth of one percent of its equalized valuation, as defined in section one of chapter forty-four of the General Laws, to establish and maintain a special fund to be known as the Town of Hadley's Liability Insurance Fund; provided, however, that no such appropriation may be made in any fiscal year when the aggregate amount in said fund equals or exceeds one percent of such equalized valuation. Any interest earned on the amount appropriated to said fund shall be added to and become part of said fund.
The town treasurer shall be the custodian of the fund and the commissioners of trust funds of said town of Hadley shall be the administrator of said fund and may direct the deposit or investment of said fund in such manner as may be lawful under the provisions of section fifty-four of said chapter forty-four for the investment of municipal trust funds.
Each fiscal year, the commissioners of trust funds shall authorize payment from the fund balance such amounts as the board of selectmen shall determine to be necessary from time to time to pay properly authorized settlements of claims against the town of Hadley and to cover costs of defending said town against such claims including, without limitation, the costs of employing legal counsel, court costs and filing fees. Said commissioners shall also pay from the amount in said fund, including the interest thereon, such amounts as the board of selectmen determines are necessary to effect insurance to protect said town against some or all of such claims, or to pay the deductible for any property, casualty or liability insurance held by said town. Any amount in said fund which is not paid out by the commissioners in accordance with the provisions of this act and which remains in said fund at the end of a fiscal year shall be added to said fund to be paid out by the commissioners in subsequent years in accordance with the provisions of this act.
SECTION 2. This act shall take effect upon its passage.