NORTH CAROLINA GENERAL ASSEMBLY
HOUSE BILL 836
AN ACT AUTHORIZING ESTABLISHMENT OF NECESSARY EXPENSE RESERVE FUNDS, APPLICABLE ONLY TO CARTERET COUNTY.
The General Assembly of North Carolina do enact:
Section 1. Short Title. This Act shall be known and may be cited as "The Necessary Expense Reserve Fund Act of 1967".
Sec. 2. Meaning of Terms. As used in this Act, the word "Board" shall mean the Board of Commissioners for a county, the words "necessary expense" shall mean necessary expense within the meaning of Section 6, Article VII of the Constitution of North Carolina, the word "fund" or "funds", unless the context herein clearly indicates to the contrary, shall mean fund as defined in Section 153‑114 of the General Statutes of North Carolina, "Fiscal Control Act" shall mean The County Fiscal Control Act, being Article 10 of Chapter 153 of the General Statutes of North Carolina.
Sec. 3. Powers Conferred. In addition to all other funds authorized by law, a county is hereby authorized and empowered to establish and maintain a necessary expense reserve fund in the manner hereinafter provided.
Sec. 4. Establishment of Fund. When the Board for a county elects to establish a necessary expense reserve fund, it shall pass an order creating the fund, which order shall state substantially the following:
(a) That a necessary expense reserve fund is thereby created for the County of ______________________ pursuant to The Necessary Expense Reserve Fund Act of 1967,
(b) That the source of moneys to be deposited in said Necessary Expense Reserve Fund shall be payment of appropriation made in the general fund of the county in accordance with the provisions of The Fiscal Control Act, and
(c) That the order shall take effect upon its passage.
Sec. 5. Depositary; Security. Promptly upon establishment of a necessary expense reserve fund the Board shall designate some bank or trust company having its principal office in the State of North Carolina as depositary of said fund in which moneys of the fund shall be deposited. The Board may, at its discretion, designate more than one such bank or trust company or may discharge one and designate another. For protection of deposits in the necessary expense reserve fund the Board shall require a depositary to furnish such security as is required by law for protection of public deposits.
Sec. 6. Investments. Pending their use for the purpose or purposes hereinafter authorized, all or part of the moneys in the necessary expense reserve fund may be invested in bills, certificates, notes or bonds of the United States of America; or in bonds or notes of any agency or instrumentality of the United States of America the payment of principal of and interest on which is guaranteed by the United States of America; or in certificates of deposit of a depositary of the necessary expense reserve fund.
Sec. 7. Purposes of Expenditure; Withdrawals. Moneys in the necessary expense reserve fund may be expended in the county for such necessary expenses as the Board shall determine to be for the best interests of the county. Withdrawal for expenditure from the necessary expense reserve fund shall be authorized by order passed by the Board specifying the amount of such withdrawal and, in brief and general terms, a description of the purpose of such withdrawal. The Board shall prescribe the method by which expenditure of moneys in the necessary expense reserve fund shall be effectuated, consistent with the Fiscal Control Act. No withdrawal shall be authorized for an amount which, together with the unexpended balances of all previously authorized withdrawals, shall exceed the amount of money actually on deposit to the credit of the necessary expense reserve fund: Provided, the Board may at any time rescind or repeal an order authorizing a withdrawal when the unexpended balance of such withdrawal is not encumbered by contract or by appropriation in some other fund of the county.
Sec. 8. The provisions of this Act shall apply only to Carteret County.
Sec. 9. All laws and clauses of laws in conflict with this Act are hereby repealed.
Sec. 10. This Act shall be in full force and effect from and after its ratification.
In the General Assembly read three times and ratified, this the 31st day of May, 1967.