Untitled Texas Attorney General Opinion ( 1939 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Hon. J.C. Gordy County Auditor Wichita County Blohlta Palle. Texas at&ad ment. Hon. J.C. GowdY, page 8 even aftei such cmand and refusal, and even though the order ooatalne a olause for the pay5eat 0r interest. In 8QGIe$.lria~iotions, howevm, a county board may issue interest bearing warrants to oover oertaln obligations or the oourity. Although, when au&horized by statute, interest on outstandlcgti%rrants oan be allowed only from the tine the atat- ute authorfzing its payment goes into effect, and a ohange of the legal rate does not ap- ply to I&crest on warrants which have al- ready beoome entitled to draw lnterest, ln- ralid warrants whioh are ratified and vali- d&ted will draw interest as though they were valid when issued.* We quote from RULmG CA% LAW, Vol. 15, p.p. 17 and lG as~followsr *It is well settled, both on prinoiple and authority,.thata state oarinotbe held to the payment of interest o&its debts un- less bound by an aot of the legislatureor by a Lawful oontract of its exeoutive offl- oera aradewithinthe coops of their:duly constitutedauthovityk Thie prlnolpLeap- plies to bonds) claims,.,udg+ente;and War- rants. The theory upon -Jlrtnh.themle ~10 based ie that whenever In%&-sat Is allowed neitherby st:&ute or by common law, exoept in aase8 where there har been a oontraot to pq interest, it 18 allowed r0r delay or default of the debtor. hut delay or dsfd$tit oannot be attributedto the government, !W is presumed~tobe s&ways ready to pay whet it owes. She a pareatly favored poeitlon of the gcveref@& fn this respect has been de- olared to Wdeanded by public pollopr A county is generally regarded as but an arm or agent or the state, and not liable for interest, in the absenoe of an express agree- ment to pay It. $m.s rule applies to ooun- ty warrants or orders and fa general to omizaty auntmats, but a oo!xnty is ganerally liable ror interest ;.auoupons on ito bond artar mzturity. c - * * The oase,~C``x:.r-3Io?``s* CwxiT YC. ‘EiAlJ.ACE, 15 S.F. (2d) 535, hold5 that the Comds6ioners~ co’urt must have authsrlty Or law ior ito eontamt, ysd, if the outhmity has been given, a reasonabla 000``~uoti0~1 0r it will be given t0 err.sat ie pwr- pOS89 se :uots fioo.the oacre of %GT?AKE VP* CIikr- tari,270 5.3. 4-S. aa follwrr u * 1,.ext ia vary generalLyat&ad that lntaroat is of a purely 8tatutmy csl&i, taminot the oreature of the oomm luw, and that intoreat 8hou.M be remd sxaept in suoh oneea ad aope withiu Lho bera~ ,sfthe stutute.* section 511of Artiole 9 of the St&s Conlltltur tlon, racda am foUawsr ahall bav6 no g~W8Prto "The I.&.SalatuF8 graat, or to authorlse any oounty or munloi- pal authority to srant, any ertm aonapenaa- tlon, fee ur ailo~ar~aet.sa publia offla.~er, or ooztraetor,after ssnioe. agent, rorvclrst has baan rendered, or a oontraat has been entered into, and ywfurmed in whole or in part{ am pay, mr authorlzo the pantimt OS any claim oreated agnlerctany oounty or 8nt~a&- ip0::tg Or the SW&, iandrag any agmsiasnt Or oontr3at.mud0 without aiitxorltyor Imwb+ Fe ,,i;ote fraa T2.Z.2tm.i Vol. 11, p. 603, a8 fOllo?Wl! yhe m&hod of uhb-iiutsrlngthe fincutce8 OS ooutlaa is fuily provided for by the stat- uteo, MC: the rar&rommts of the law ciaynot be de!,artadfrom. li1;I " 62 Bon. 3.C. eQwdy, page 4 Atter Q oar6?ul eoaroh of the otatutaa am! the ounstlt&iPlawa are unable ta flc.dany authority au- tz~rislng tha caaissionerct~Court ta pay lntarast an overtrrlrt8. IO quote rroleTEx* JUR*, I?al*11, pa w4, 8s r0ii0w8 t voraruituk``erc~ courta are 00urtb 0r lLm- itod &risUatlan, ia that tkeir authority .extendsonly to nvltterepertaining ta tha general weliars 0r tar raspotiva oowi- ties an4 that their powero &re only tho8e axprasslyar lmpliadlyaoniarrsd uwon thcra by law,-t&t is, by the oonetitutioasnd atatUtC8 Of the btIhd.* 00 AU@St 9, lW7 tnin ciopnrtmntheld in an op&ion wrftrsn by Ron0 Soott Gainsa, bsnirtantittorney cwmral, adGra8ntId to f&r.J.R. Son8a, county Auditor wiohita palls, Texar, "that Ghi8 aspiirtmntha8 00~18 fn- tantly held that the oosty aacmissianors~aourt uau without autaorlti to al&w and pay intim38t on ordinary OOUtItyWIirrm8 OX 8Otipt i88Ued kA J?WRi&i Of #ZiUXFSJit exptwwoe. Thererors, lnterset aould not be paid by a oaunty to the county Qopaaita``on averclraft oreutsd ln the general fund, road and bridge fkbnd or the oifl- oar's ,gilarymm3 or say other runs 0r tihsaouaty.* ~180 sac tha oasa or the s+imIiSF pxxs vs. wtsoh', 'iIT0X@8 291. YOU UT0 rtI8JH5OthilyaLVi6~Cithat it $8 tb cjpirhn 0r this aeprwbnt that ivhena aounty ir 0p0r- sting on a aa8h basks, auoh oounty a&mot iegakly pay interest on ovamir.$ts0