Untitled Texas Attorney General Opinion ( 1958 )

June 9, 1958 Honorable Robert S. Calvert Opinion No. WW-448 Comptroller of Public Accounts Austin, Texas Re: The authority of the Comptroller of Public Accounts to draw the warrants necessary to pay and redeem certain Permanent University Fund Bonds, dated July 1, 1949, in advance of the due dates, so as to en- able the institutions to refund the balance of Dear Mr. Calvert: said 1949 bonds. Your request for our opinion reads, in part, as followsr "We have received a letter with enclosures from the University of Texas, asking whether or not this office will draw the warrants necessary to pay and redeem certain Perma- nent University Fund Bonds, dated July 1, 1949, in advance of the due dates, so as to enable the University to refund the balance of said 1949 bonds. An almost identical letter with enclosures has been received from the Agricultural and Mechanical College of Texas." With your request we received and have examined the letters, the copy of the proposed resolution authorizing the refunding of the 1949 bonds, and the copy of the proposed es- crow agreement with the bank, the principal place of payment of these bonds, which you received from the University of Texas and the A. and M. College of Texas in reference to the refund- ing of the Permanent University Fund Bonds, dated July 1, 1949, and the advance payment and redemption of certain of said bonds in order to accomplish the refunding. Honorable Robert 5. Calvert, page 2 (-448) We have also referred-:,tothe proceedings relating to the issuance of all said 1949 bonds, including the reso- lution authorizing same, which are on file in this depart- ment. The procedures for paying and redeeming said 1949 bonds are set forth in Sections 14b and 14~ of the resolu- tions authorizing said bonds, respectively. Simply stated, these resolutions provide that the Comptrollers of the re- spective institutions are required to file vouchers with your office covering the amounts required for paying or redeeming the bonds. These vouchers are to be filed - on or before cer- tain dates. It is our opinion that the proposed vouchers may be filed and,the warrants based thereon drawn by you in advance of the-usual times, and that such procedure complies with law and the resolutions authorizing the 1949 bonds. Tbeiegality of this procedure is further shown by the provisions of Chapter 255, page 546, Acts of 1957, Fifty-fifth Legislature of Texas, Regular Session, which authorizes the institutions here involved to refund the 1949 bonds on such "terins and conditions" as may be determined by said institu- tions. The proposed resolutions authorizing the refunding required that the unrefunded 1949 bonds be paid and redeemed in advance in the manner contemplated. In fact, the refunding could not be accomplished legally if the proposed procedures were not followed. In July or August, 1958, when the vouchers are filed with you covering - (1) interest on all said bonds coming due January 1, 1959: (2) interest on all said bonds coming due July 1, 1959 and the principal of the bonds maturing July 1, 1959; (5) the principal plus a premium of 2% of the bonds being redeemed prior to maturity, on July 1, 1959, this being the redemption price, Honorable Robert S. Calvert, page 3 (WW-448) we are of the opinion that you are authorized to immediately transfer sufficient moneys for such purpose from the respec- tive interests of such institutions in the Available University Funds to the credit of the respective Permanent University Fund Bonds Interest and Sinking Funds of such institutions, and to draw and deliver the necessary warrants on said Interest and Sinking Funds payable to the Texas National Bank of Houston, being the principal place of payment and redemption for such bonds. SUMMARY The Comptroller of Public Accounts is au- thorized to draw the warrants necessary to pay and redeem certain Permanent University Fund Bonds, dated July 1, 1949, in advance of the due dates, so as to enable the in- stitutions to refund the balance of said 1949 bonds. Yours very truly, WILL WILSON Attorney,General of Texas Howard W. Mays / HWM-s Assistant Attorney General APPROVED: OPINION COMMITTEE George P. Blackburn, Chairman J. Arthur Sandlin Richard B. Stone REVIEWED FOR THE ATTORNEY GENERAL By: W. V. Geppert