Section 1.
That the board of supervisors of any county having authority to acquire, construct
and operate a water supply system or systems under authority of chapter 175 of the
Acts of Assembly of 1946, and as amended, and the board of supervisors of any such
county when and if authorized and empowered by the Acts of Assembly of 1948 to acquire,
construct and operate a sewer system or sewer systems in any such county, be, and
they are authorized and empowered to purchase any of such systems from any sanitary
district in any such county and to make a just and commensurate payment to such sanitary
district or districts by way of cash settlement and/or the assumption of any indebtedness
against any such sanitary district by reason of any such system or systems. If there
be a sanitary district, in any such county, having both a water supply system and
a sewer system, the board of supervisors of any such county may, in their discretion,
purchase either or both of such systems, and if there be a single indebtedness against
both such systems and the said board of supervisors elects to purchase only one such
system, then said board is authorized and empowered to assume such indebtedness in
whole or in part. If any such indebtedness be not immediately payable, or callable
within one year from January 1, 1948, any such board of supervisors is hereby authorized
and empowered to lend out the amount of the indebtedness, or less, until such indebtedness
is callable, upon real estate security, the loan not to exceed 50 percent of the appraised
value of said real estate, or deposit in bank at interest the amount of the indebtedness,
or less, or both, not to exceed the amount of the indebtedness, or may invest any
part or all of the amount of such indebtedness in securities designated by law as
proper investments for fiduciary funds; provided, that no such funds shall be loaned
out or deposited or invested by any such board of supervisors, unless such loan, deposit
or investment shall be first approved by the circuit court of said county, or the
judge thereof in vacation, and the form of security be examined and approved by the
commonwealth's attorney of such county, which approval shall be entered of record
in the proper order book of the said court. The treasurer of the county shall not
be liable for any funds herein provided for that shall be lost while on deposit made
by order of the board of supervisors with any bank or banks, or when invested in any
real estate security as provided herein, but the board of supervisors may require
of any such bank a bond with corporate security or adequate collateral to secure such
deposit.
