AN ACT AUTHORIZING CERTAIN TERMS FOR BORROWING BY THE TOWN OF NORFOLK FOR CONSTRUCTING A GOLF COURSE.
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. Notwithstanding chapter 44 of the General Laws to the contrary, the maturities of bonds issued by the town of Norfolk for the design, development, construction and equipping of a municipal golf course, including a clubhouse and related structures, and also including the acquisition of land and existing buildings, improvements, equipment and furnishings and the repair and renovation of existing buildings and improvements, either shall be arranged so that for each issue the annual combined payments of principal and interest payable in each year, commencing with the first year in which a principal payment is required, shall be as nearly equal as practicable in the opinion of the town treasurer, or shall be arranged in accordance with a schedule providing for a more rapid amortization of principal. The first payment of principal of each issue of bonds shall be not later than 1 year from the estimated date of commencement of regular operation of the golf course as a municipal golf course, as determined by the town treasurer, and the last payment of principal shall be not later than 30 years from the date of the bonds. Project costs to be financed by the issue of the bonds may include interest incurred on the bonds and any bond anticipation notes for a period of up to 1 year after the date of the original borrowing or, if later, 1 year after the estimated date of commencement of regular operations of the golf course, as determined by the town treasurer. The town may create and maintain, from bond proceeds or other sources of funds, such reserve, replacement, maintenance and improvement funds in connection with the golf course as it may deem necessary and prudent, but the aggregate of such funds provided from bond proceeds for the project shall not exceed 10 per cent of the principal amount of the bonds issued for the project. Any net earnings derived from the investment of the proceeds of the bonds may be expended by the town treasurer to pay interest on the bonds but otherwise shall be used only for acquisition, construction, equipping, operation or maintenance of the golf course. Except as otherwise provided in this act, indebtedness incurred by the town for the golf course project shall be subject to the applicable provisions of said chapter 44.
SECTION 2. The town of Norfolk shall establish an Enterprise Fund for the golf course facility and its operation, which shall be subject to section 53F½ of chapter 44 of the General Laws; provided, however, that any available surplus in the reserve fund established under said section 53F½ may be appropriated by the town for any capital project for which borrowing may be authorized under section 7 or section 8 of said chapter 44.
SECTION 3. The vote of the town passed under Article 6 of the warrant for the special town meeting held on June 18, 2001 authorizing the issuance of bonds or notes for the golf course project, is hereby ratified, validated and confirmed. Proceeds of the bonds issued in accordance with section 1 of this act may be used to refund any bond anticipation notes previously issued for the acquisition, design, environmental permitting and other preliminary expenses relating to the golf course project.
SECTION 4. This act shall take effect upon its passage.