Untitled Texas Attorney General Opinion ( 1942 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Rgnolvlble T. Gilbert Adam
County Attorney
Jasper County
Jasper, Texas
Dear Sir:
ion or this dep
in part ae ioll
by the Colamissioners
8, to aeoure the
IL the authority of
ae $7000.00 of the
d~slnklng Fund or Road
County, Texae, aa a re-
our houra notioe.
requires that the county furnish
the revolving fund ior.the Bet-up, and the our-
plue id the,road distriot Interest end Sinking
Fund is the only eurplne which the oountg hae to
draw from ror this prograra,a
Seation 17, of Article 2'3.51, Vernon's Annotated
Civil Statutes, provides in part:
Eonorable T. Gilbert Adams, Page 2
i the Commissloaers Court OS eaoh oounty
Of this State, in addition of the powers already
oonferred on it by.law, is hereby empowered to
oreate a revolving fund or funds and to make
appropriations thereto out of the generalrev-
ewe of such county; and such revolving fund
shall be used by suoh aounty only In oooperatioa
with the United States Department of Agriculture
to aid and assist la oarrylag out the purposes
and provisions of an Act 0r Congress 0r the
United States pertaining tothe distribution
of commodities to persons in need of assistanoe,
under the dlreotien of the United, States Depart-
ment of Agrioukture; provided, however, that the
county shall have oa hand at all times either
the moneys appropriated to suoh revolving fund
or l’unds or the equivalent thereof in stamps
issued by the United States Department of Agri-
culture under the Fodd and/or Cotton Stamp Plan;
which stamps are oonvertible into oash at any
time .*
Article ISSa, Veraon’s Annotated Civil Statutes,
authorizes any county or any polltlcal’subdivlaion~ol the
county, or any road dietriot that has beenor may be~oreated
by any general or speoial law to issue bonds for the purpose
of oonstruotloa, maintenance and operation of ,maoadamLzed,
graveled or paved roads, and turnpikes, or In aid thereof’,
in any amount not exoeedlng one-fourth of the assessed valua-
tion of the real property of suah oounty or politloal suv-
divisioa or road distrlot, and to levy and oolleot.aUvalorem
taxes to pay the interest on such bonds and provide a sink-
ing fund for the redemption thereof.
Artiole 779, Vernon’s Annotated Civil Statutes,
provides!
The commissioners oourts. may invest sink- ’
ing funds acoumulated for the redemption and
payment of any bends issued by suoh oounty,
politioal subdivision or defined district there-
of, in bonds ofthe United States, Of.Texas, or’
any county in this State; or in bonds of the
Federal Farm Loan Bank System. NO suoh bonds
shall be purchased which; aooording to their
terms, mature at a date subsequamt to the time
OS maturity of the bonds for the payment of
whioh such siragingfund was created.*
Honorable T. Gilbert Adams, Page 3
ArtiOle 780, Vernon's Annotated Oivil Statutes,
provides:
*All i6terest on such investments shall be
applied,to the sinking fund to whioh it belongs,
and the use of suoh funds for any other purpose
shall be oonsldered a diversion thereof and pun-
ished as provided by artiole 94 of the Penal
Code."
Artiole 779, supra, describ ed the manner and des-
ignates the bonds, wh**h the sinking funds aoouniulated for
the redemption and payment of any bonds issuedby such oouM,V,
political subdivision or defined district may be invested.
However, this statute does not authorize the oonimlssioners~
oourt to use any portion of the surplus in the interest and
sinking fund for any other purpose.
Ia view of the foregoing statutes It is our opin-
ion that any surplus in'the interest and sinkl5g fund of
the road distriot must be applied to the speoifio purpose
or purposes for which It was raised and aoWaulated, whloh
was for the redemption and payment of the ~bond issue and.
the interest thereon;exoept the investmedts authorized by.
Article 779, supra. Therefore, the oommissioners* oourt
has no legal authority er power to use s5y emouatof the
surplus in the interest and sinking fund OS the above
mentioned road'distriot for the purpose of'settiag up a
revolving fund for the oountp, to be used by said county
in oooperation with the United States Department of Agri-'
oultureix aid and assist in carrying out the purpose and
provisi058 of se&Ion 17, Artfole 2351, eupra, end an Act
of ~Gongress pertaining to the distribution of commodities
to persons in need of assistance regarding the food and/or
aotton stamp plan.
Yours very truly
ATfORNEp GENERALOFTEXAS
APPROVED FEB 19, 1942
a/ Grover Sellers
FIFLSTASSISWN!C
ATTORNEY GXXXE?AL
1IW:I.M
APPROVEDOPINIOIi comalTEE BY Bg cm