SECTION 405:10-7-8. Assets dedicated to provision of library services

  Assets of the library system shall be dedicated to purposes of providing library service, and disposal shall be made accordingly.

(1)   In the event that the withdrawing area joins another library system with the approval of the Department of Libraries Board, the area's fund derived from the disposal of assets shall be paid to the library system it is joining for the purpose of providing equitable library system service to that area.

(2)   In the event that a county or counties are unable or unwilling to continue library services, any assets divided, including cash settlements, shall be paid to the Commissioners of said county for the purposes of library services, and a trust for such purposes shall be held no longer than two (2) years from the date of the distribution of assets.

(A)   If the county or counties have failed to provide library service on a stable, continuing basis as evidenced by appropriate resolutions and ordinances of the governing bodies within two years, such trust accounts shall revert to the exclusive control and use of the library system from which said county or counties withdrew.

(B)   In the event no library system exists from which said county or counties withdrew, funds held in trust for library service is continued, and may be used only for library service.