. - OFFICE OF THE AlTORNEY QENERAL OF TEXAS AUSTIN Ronornble Oaynor Kendall Invootmcnt Counsel State Board ot Education Austin, Tlxa8 eat forth, . Board of Zdu- poxer to nllo~ ricte in quee- oilds if t& letter of recent date lled with this ont School District an permlosiozlto 943, Bonds 80s. 26 to 23 in t 0r $9,000 out 0f th0 1025 Id bg the Pormmont School Fund lot. The lntoroet-payiw date ay 10th and November 10th in “The State Board of Education did not hmo a meeting betreon Llarch 29th and June 7th. and in ooneequonoe th8 application was oonaldored by the Board at St8 June 7th mooting, at rhiah tlmo the Board voted to approve tho payment lo of Hay 10th. .. . ; i; :, ” 4 i ’ Honorable Qaynor Kendall, pa80 PO aubjoot to your opinion ac to the poror of tho + Uoard to do 80. The diatriot had formrdod to the Treasurer and there tan in hio lxwd be.foro &Lay10th a cheek for tho full amount of tho bond@ which the dietriot desired to prepay,‘,to;;sther ’ with intereat thereon through May 10,.1943. *You ure rospcotfully requeeted to advise whether prepaymont of the bonds can to accoptod PO of May 10, 1343, in viov of the fact that the dietrict had remitted to the State Troaouror the amount involved bofore the intorost-paying dnte, /. and had filed its application for pemioeion to prepay the bonds more than thirty days in advance of the interoat-payirq, date, “A eirdlar cam also wae oonsidored bg the Eoard at lte June 7th meeting, and your edvloe in the matter is likeaiee requested. The I!ollidag Indo- pendent School District of Proher County desired to prepay on April 10, 1943, $10,500 in boilds out of the series held for the Permanent School Vund. The diatrlot did not make application to tile StaC.o Board of Mucation boforc tho interest-pnyiz;; date had elapsed this year, but did oend to t&o S&to l Treasurer on or about April 9, 1343, a cheek cover- ~. '. ing the amount of bondo and lntereet due at ttit date, together with the 8um or $10,503 ~hic;l it * ,. stated it doBired to bo applied in prepa;?aont of bonds in that nmount on April 10, 1943. Tho Tress- urer returned the rcsittance to We officials of the dimtrict and advised them that it zrould ‘00 mooea- sary for the distriot to make application to~tho State Board for pomls8ion to prepay t;lo bon28 in question1 the applloation was later duly fllcd’bg ,i the district, but after the interest-psylng date for 1943 had >asaed. “Under the statute has the Poard the power to al- low the Hollidap Indopendont School Distrlot to pre- pay the bonde a8 of April 10, 1943, or botncon tilat date and the next auoceeding ,lntoreat date if tl?o diatrlot ~111 pay interest on tho bond3 it desires to propay to the date of paymeut of ruah bondat*, . . 5 Honorablr Caynor Kendall, ~a60 #B 1 ’. Actlola 2727r, Ret&sed Civil Statutes, 1926, r*ead. aa ro11ors: , “The State Board of Education may authorize the truetoea of any oommon eohool district or of any lndependont school dietriot of this Stnto to pay off and discharge, at any interest pay- ing date whether the bonde are matured or not, all or any part of any bonded lndebtednoss now owned or hereafter to be owned by the State Por- mane& School Fund, outstanding against any com- mon eohool district, or any independent rohool dlstriot in thie State. , ‘It ohall be the duty of the school truetooe of any oommon sohool diotrict, or any lndopondont ecr1001 dietriot OS thla State deslrinc: to pay off and discharge any bondod lndebtodness non oxnod or heroaftor to be ownod by the Pormanont School Fund of this State, outstanding aGainat such dir- triot or diatricto, b&ore maturity thoroof, to mnke direct application in wr1tl.q to tho State Board of Education at least thirty days before any Interest paging date on aaid bonds, makinS -- known to said State Eoard of Education the dosire of said trustees to pay off and dlsoharge said bonded indebtedness, or any part thoroof, describ- izq said bonds or tho part thereof that tho trus- toes desire to pay off and disohargeg and it shall be the duty of the State Board of Education upon receipt of such application to act thereon in such mannor as they doem beat and notify the ap?licnnt or appllonnte whothor the application in rofuood or granted in wholo or in party provided, thnt only such tax monoy as has boon collected by virtue of tax levies mado for the opoolfio purpose of provid- inC: a einklw fund and paying lnterost on the pnr- tlcular bonde to be redeemed shall be oxpcndod in ‘the redemption, taking up, or payinS off of such bonda aa provldod in t‘nia Aat) unless said bonds are being redeemod for the purpose of being refund- edj and the application of the board of truetooe or any oommon or independent sohool distriot do- airing to r8ti.m bonda aa heroin prorided &all . _ :* . 6 Wanorabla caynor Kendall, pege #4 . inolude an ofkdavit to taat effect in tholr applioatlonfi and providod further, that it shall be unlawful for any pereon upon rhon any duty rests In carrying out the provlalonr of this . law to give or roceiee any commleslon; pre,pium, or any 0ompensatIon whatever for the performanoe . of euoh duty or duties. “The provisiona of this Act shall apply also to the governing boards of all alties, aountlee and political subdIvIsIons In this State whose bonds are owned or may heroaftor be owned by the Permanent School Fund of the State.” From the above it ~911 bo seen that tno Stata Aourd . of Education 1s gives broad discretionary powsrs. -i: my, In its discrotlon, grant or rofuso an application, but It lo mde the duty of the Board “upon rocoipt of such applfcutlsn to act theroon in suah manner as tioy deem best and ilotlfi triu ap?ll- cant or applicants whothor the application Is rofusod or grant- od In whole or In part.’ From tho statement of fac-Ls stated in your letter, the Halls Indepetldent Cc,hool District filed its ap- plication more than thirty day a prior to May 10, 19.i3, the int- erost payin? date, and forwarded to the State Treasurer a o;leok for the full amount of principal and interest due ,vn tint date, but the State Eoard of Zducntlon did not iRva a m.:eting uilt.11 June 7, at whnhichtlms~ t’Lc Baard votod to approve t!lo payment as of May 10, subject to tne opinion ol’ tae jittorney Qoneral as to Thor poner of the Eoard to do so, ;u‘e find nothing in the ctdilclo above quoted vhich 1ImIts tho tFma In which the Board must act, oxcopt the words “upon receipt of the applicatlon.~ Tie Coara acted at Its oorp first mooting after tho receipt of the application, which was the first opportunity it had to pase upon it, and you aro advised that it la our opinion that the Board had the power to do so at that meeting, With rcopoot to tho Bolllday Xndepondont Sohool Dis- triot it appears that the Distriot did not file an applioation thirty daye prior to the April 10th Interest payin& date as re- quircd by Article 2787a, but did file an eyplication aftor that date. Iti ir our opinion that thir applioation does’not comply .’ .’ Honorable Oqnor Xmdall, pwe #6 . + with the plain provlrione of the rtatute and it is, therefore, our opinion that the Board doer not have tha authority to prr- nit the diatriot to propay therr bondr until the nort ruooeed- lng lntoremt paying date. . Very truly yourr 0. P. Oiboon Aacistaut , I .