Sec. 1. 7 MRSA §§196 to 199-B are enacted to read:

§196.__Building associations authorized

The county commissioners of a county or combination of 2 counties in which there is a county extension association are authorized to form a county extension building association under the nonprofit corporation law of the State.__A county extension building association is a public instrumentality of the State and a constituted authority for purposes of the United States Internal Revenue Code of 1986, Section 103.__The purpose of a county extension building association is to acquire, by purchase, lease or otherwise, buildings and other real and personal property to be used by the county extension association in carrying out its public purposes under this chapter.

§197.__Borrowing authorized

In order to carry out its purposes, a county extension building association is authorized by a vote of the directors to borrow money on behalf of either or both of the county or counties comprising the affiliated county extension association by the issuance of bonds or notes and to grant mortgages and security interest in its property to secure the obligations.__All bonds or notes must be for a term not to exceed 30 years and contain such terms and conditions as the directors of the county extension building association may determine.__The bonds or notes may not be an obligation of or pledge the faith and credit of the State, any county or political subdivision other than the county extension building association.

§198.__Other powers and authority

In addition to the powers and authority granted to a county extension building association under this chapter, the county extension building association has all other powers and authority granted to nonprofit corporations under Title 13-B.

§199.__Directors chosen by county commissioners

A majority of the directors of a county extension building association must be appointed by county commissioners of the county or counties comprising the affiliated county extension association.

§199-A.__Conveyance to county

No part of the net earnings of a county extension building association may inure to the benefit of any member, director or officer of the county extension building association, or any