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 the provisions of chapter 44 of the General Laws to the contrary, the maturities of bonds issued by the city of Peabody for design, development, construction and equipping of a municipal golf course, including a clubhouse and related structures, and the acquisition of land or interests in land necessary for the project, 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 city 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 one year from the estimated date of commencement of regular operation of the golf course, as determined by the city 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 two years after the date of the original borrowing or, if later, one year after the estimated date of the commencement of regular operation of the golf course, as determined by the city treasurer, and may include lease or other similar payments, if any, made by the city with respect to the site of the project for a period of up to one year after the estimated date of commencement or regular operation of the golf course, as determined by the city treasurer. The city 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; provided, however, that not more than 10 per cent of the principal amount of the bonds issued for the project may be used to establish a debt service reserve fund. Any net earning derived from investment of the proceeds of the bonds may be expended by the city treasurer to pay interest on the bonds but otherwise shall be used only for construction, equipping, operation or maintenance of the golf course. Except as otherwise provided in this act, indebtedness incurred by the city for the project shall be subject to the applicable provisions of said chapter 44.

SECTION 2. The city of Peabody may establish an enterprise fund for the golf course facility and its operation, which shall be subject to the provisions of section 53F½ of chapter 44 of the General Laws; provided, however, that any available surplus in the reserve fund established under said section may be appropriated by the city 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 city council passed at the special meeting held on September 29, 1997 and approved by the mayor on September 30, 1997, authorizing bonds 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 design, environmental permitting and other preliminary expenses relating to the golf course project.

SECTION 4. This act shall take effect upon its passage.