GENERAL ASSEMBLY OF NORTH CAROLINA
1989 SESSION

CHAPTER 219
HOUSE BILL 203

AN ACT TO PROVIDE FOR ADDITIONAL USES OF THE SPECIAL RESERVE FOR THE FUNDS RECEIVED BY IREDELL COUNTY FROM THE SALE OF LOWRANCE HOSPITAL.

The General Assembly of North Carolina enacts:

Section 1.  Section 1 of Chapter 30, Session Laws of 1987, reads as rewritten:
"Section 1.  (a) The funds received by Iredell County from the sale of Lowrance Hospital, Inc., and interest earned thereon, shall be held by the county in a special reserve.  The reserve shall be administered generally in accordance with the procedures for capital reserve funds in Part 2 of Article 3 of Chapter 159 of the General Statutes, except as provided by this act.
(b)	Until January 2, 1991, no funds may be expended from the reserve except deductions from the sale price for contractually assumed obligations, closing costs, claims arising from the operation of the hospital prior to its sale, and the reacquisition costs in the event of default by the purchaser.  Provided, however, the Iredell County Board of Commissioners may at any time spend accumulated principal and interest, up to a maximum of $50,000, for the erection of emergency medical service facilities within the corporate limits of the Town of Mooresville.  Provided, further, that the Iredell County Board of Commissioners may at any time lend up to $2,800,000 of the accumulated principal and interest to South Iredell Community Development Corporation for the purchase and/or development of the tract of land on Mazeppa Road under option to Iredell County, upon the following conditions:
(1)	The loan proceeds shall be used for the purchase and/or development of the land for industrial use:
(2)	The maturity date of the loans may not be more than five years from the date of disbursement;
(3)	The interest rate shall be the equivalent of the average rate earned by Iredell County on the remaining portion of the reserve fund; and
(4)	Any other conditions required by the Iredell County Board of Commissioners.
(c)	After January 1, 1991, funds may be expended by Iredell County from the special reserve only after receipt of recommendations from a special committee comprised of five members appointed by the board of county commissioners of Iredell County as follows:
(1)	One representative from the medical staff of Lowrance Hospital to be chosen by the medical staff;
(2)	One member of the board of county commissioners of Iredell County chosen by that board;
(3)	One member of the Mooresville Town Council chosen by that council;
(4)	One member of the Lowrance Hospital Inc., Board of Directors chosen by that board; and
(5)	One representative of the Mooresville/South Iredell Chamber of Commerce to be chosen by the Mooresville/South Iredell Chamber of Commerce.
Members of the committee shall serve four-year terms, with the initial terms expiring on December 31, 1990. Vacancies shall be filled by the appointing authority for the remainder of the unexpired term.
(d)	It is intended that the funds from the sale of the Lowrance Hospital, Inc., be used for health-related purposes in the Lowrance Hospital area located within Iredell County."
Sec. 2.  This act is effective upon ratification.
In the General Assembly read three times and ratified this the 5th day of June, 1989.