GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H	1 

HOUSE BILL 301

Short Title:  County Capital Reserve Funds.	(Public)
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Sponsors: Representative Bowman.
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Referred to:  Finance.
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February 21, 1989

A BILL TO BE ENTITLED
AN ACT TO PERMIT COUNTIES TO CREATE CAPITAL RESERVE FUNDS TO PAY CLAIMS AND JUDGMENTS.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 159-18 reads as rewritten:
"§ 159-18. Capital reserve funds.
(a)	Any local government or public authority may establish and maintain a capital reserve fund for any purposes for which it may issue bonds.  A capital reserve fund shall be established by resolution or ordinance of the governing board which shall state (i) the purposes for which the fund is created, (ii) the approximate periods of time during which the moneys are to be accumulated for each purpose, (iii) the approximate amounts to be accumulated for each purpose, and (iv) the sources from which moneys for each purpose will be derived. 
(b)	In addition to those purposes enumerated in subsection (a) of this section, a capital reserve fund may be established by any city or county to fund the payment of claims against or judgments which may be entered against the city or county or the payment of claims against or judgments which may be entered against any employee or officer or any city or county in keeping with a resolution adopted pursuant to G.S. 160A-167.  The creation of a capital reserve fund is not a waiver of governmental immunity by the city or county creating that fund."
Sec. 2.  This act is effective upon ratification.