Untitled Texas Attorney General Opinion ( 1967 )

March 24, 1967 Honorable Jesse James Opinion No. M - 46 State Treasurer Austin, Texas 78711 Re: Eligibility of the described bonds as collateral for state Dear Mr. James: deposits. Youhav,e-requested an opinion as to the ellglbllity of Harris County Water Control and Improvement District Number 1. Waterworks and Sewer System Combination Tax and Revenue Bonds, Series B 1951, dated February 15, 1951, (hereinafter referred to LS “the Bonds”) as collateral for state deposits. Bonds of water control and improvement districts are not included In the eligible classes of securities enumerated In Article 2529, Vernon’s Civil Statutes; therefore, the Bonds are not eligible under the general depository laws. No. c-664 No. V-838 No. O-2870 Harris County Water Control and Improvement Distr$.ct Number 1 was organized pursuant to the authority found in Article 7880et. seq., Vernon’s Civil Statutes. Bonds of such districts are not eligible as collateral security for state deposits unless the issuing district has quali- fied as a “Municipal District” pursuant to the provisions of Article 7880-lga, Vernon’s Civil Statutes. A careful examination of the bond transcript authorizing the issu- ance of the Bonds (Comptroller’s Registration No. 27450) and your opinion request does not reflect that Harris County Water Control and Improvement District Number 1 has ever qualified as a “Municipal District .‘I In the absence of such quallflcatlon, It is the opinion of this Department that the Bonds are not eligible as collateral security for state deposits. - 215 ” Honorable Jesse James, Page 2 (M-46) SUMMARY In the absence of a showing that Harris County Water Control and Improvement Dlstriut Number 1 has complied with Article 7880-lga, Vernon's Civil Statutes, the district's Water- works and Sewer System Combination Tax and Revenue Bonds, Series B 1951, are not eligible as collateral for state deposits. truly yours, 07 &zz- C. MARTXN MPM:mh General of Texas Prepared by M. Paul Martin Assistant Attorney General APPROVED: OPINION COMMITTEE Hawthorne Phillips, Chairman W. V. Geppert, Co-Chairman Marvin Sentell 2. T. Fortescue, III Fielding Early STAFF LEGAL ASSISTANT A. J. Carubbi, Jr. - 216 -