Section 13. A town which at a meeting, or a city which by its city council accepts this section, or has in like manner accepted corresponding provisions of earlier laws, may appropriate an amount not exceeding in any one year one twentieth of one per cent of its equalized valuation as defined in section one of chapter forty-four to establish and maintain a municipal buildings insurance fund from which any municipal buildings or other municipal property damaged or destroyed or lost by fire, lightning, vandalism, burglary, theft or otherwise, may be repaired, rebuilt or replaced by other buildings or property to be used in place thereof; but no money shall be appropriated for such purpose while the fund equals or exceeds one per cent of such equalized valuation. Such fund shall be managed and administered by the sinking fund commissioners of the town, if any, otherwise by the commissioners of trust funds of the town.

If a city or town which has established such a fund in accordance with this section has neglected or failed for a period of five consecutive years to appropriate for such fund, for any reason other than that the maximum amount authorized by this section has been accumulated, it may vote appropriations from such fund and the income therefrom for the purpose of paying a proper charge for effecting fire insurance on municipal buildings or other municipal property against loss or damage by fire, lightning or otherwise; provided, that nothing in this paragraph shall prevent any city or town from appropriating money for effecting fire insurance under authority of any other general or special law applicable thereto.