Untitled Texas Attorney General Opinion ( 1942 )

Honorable‘19. & Tuoker
CauntyAttorney
Colllngsworth csunty
Wslllngton,Teams.
~DearSir* qelion Ho.*0-4669
Be1 Legalityof aoamissloners’ oourt
purohasingbonds out of oounty
PermanentEohool Funds.
Ws aoknawledgereoeiptof your opinionrequestof reoentdats
and quote from your letteraa followsa
*The’MldwayCfsmaon BohaolMst&t ln this,soun@ dsslrk t0 retire aome
bonds that are not sulajaatta call beforedue date thereof, therefore,
muld it bs penularlbXe for the Conmieslonere~ Court of Co&lingsworth
County,Texalr, to purohare maid ‘bondsand pay.for esunewith CountyPerma-
nent BohoolFun&t 1,
*Followingyour OpinionRoe .&5821 ofi,date &uaf 21, l!& I do not be-
lieve that suoh sala aan be made wlthoutthe oonesntof holder of said
bozJd.9.“``
The law applioableto the l~eatmen% af the Couu~ Per&went
SchoolPond is found la Artlole9, Seotdon6 of the Constititlonof Texas,
and Artiole2824;RevisedCivil Btatutesof Texas, Artiole,?,Section6
of.theConstltutlonreads, in part, as follower
a. . . Said lands,and t&e prooeedsthereof,when sold,.shall‘beheld by
said ooCntlesalone aa a trust for 43mbenefit of the publiosohools;
therein:said prooeedrto 'belnyeo%$m~mlnJ&s @ tho_Jnit_ed States.the
State of Tetiias;
or oountdesin aaid State, or in such other securi&c..
and under suohrestrlotionsa8 may be presoribedby law; and the oounties
shall be responsiblefor all inrehtmen%~ . . .” -
&tiole 2824,Revised Civil Statutesof Texas, reads, in part,
a8 follows~
s. . .,the,praoeedsof any suoh sale shall be’investedin bonds of the
UnitedStatss,~the State of Tsxas, thabonds of the oounties of the ,State,
and the inddpenlentor oomwn sohooldistriots,road preainot,drainage,
irrigation,navigation.aad’lsveedistriotsin this Stati and the bonds
of inoorporatedoitiesand towns,~+ndheld %y.suoh county aLooneaa a
.
Ron. FL M. Tucker,page 2 (+4?X)
:
trust for the benefit of publicfree aohoolstherein,only the interest
thereon to bo used and expendedamually. . . *"
Therefore,it is the opinionof .thicdepartmentthat the Comais-
sionerslCourt has the pwer to invest funds belongingto the Permanent
S&o01 Fund in tie seouritiesentrmeratedabove. See Boydstunvs. Rockwall'
County, 24 S. FL 272. ..
1t‘i.e aleo our opinionthat your conclusionis correct ih that
the Commissioners* Court has no authori.tJ
to purohaae::.ondaprior.to matur-
ity date withoutthe consentof the holder of said ~bondsa This department
held in OpinionBomber O-3821.tbata schooldistriothas no authorityto
sell bonds prior ikotheir maturitydate againfft the uill of the oraer, in
the absenceof expressstipulation thereforin the bonds. CitingState ex
rel. Parker,Attbrney G&x-al, vs. Stat9 School'FundCommission,et al,
103 Pac. (2) 8011 44 C. J. 1235j State VE. Keith,66 Pao. (2) 10691 Brenham
~6. GermanAmeriaanBank, 144 U.S. 173.
Prustingthat~thisaneuersyour question,we,are' ..
very truly youl-s
ATTOBNEYGFXERALOFIhw
.. ', .~ ::;:.
'By/e/Cl&d Ob BootJ+an i .' `` :
::
Claud 0. lkothuen
AEsietant .~.
COB-eaegw. .’
APPROVED :
OpinionCondtt+e
.ByB'FEB
ChairmW