Case Information
*1 Honorable ‘19. & Tuoker
Caunty Attorney
Colllngsworth csunty
Wslllngton, Teams.
~Dear Sir* qelion Ho.* 0-4669
Be1 Legality of aoamissloners’ oourt purohasing bonds out of oounty Permanent Eohool Funds.
Ws aoknawledge reoeipt of your opinion request of reoentdats and quote from your letter aa followsa
*The’Mldway Cfsmaon Bohaol Mst&t ln this, soun@ dsslrk t0 retire aome bonds that are not sulajaat ta call before due date thereof, therefore, muld it bs penularlbXe for the Conmieslonere~ Court of Co&lingsworth County, Texalr, to purohare maid ‘bonds and pay.for esune with County Perma- 1, nent Bohool Fun&t
*Following your Opinion Roe .&5821 ofi,date &uaf 21, l!& I do not be- lieve that suoh sala aan be made wlthout the oonesnt of holder of said bozJd.9.“~~
The law applioable to the l~eatmen% af the Couu~ Per&went School Pond is found la Artlole 9, Seotdon 6 of the Constititlon of Texas, and Artiole 2824; Revised Civil Btatutes of Texas, Artiole,?, Section 6 of.the Constltutlon reads, in part, as follower
a. . . Said lands, and t&e prooeeds thereof, when sold,.shall ‘be held by said ooCntles alone aa a trust for 43mbenefit of the publio sohools; therein: said prooeedr to 'be lnyeo%$m~mln J&s @ tho_Jnit_ed States. the State of Tetiias; or oountdes in aaid State, or in such other securi&c..
and under suohrestrlotions a8 may be presoribed by law; and the oounties shall be responsible for all inrehtmen%~ . . .” -
&tiole 2824, Revised Civil Statutes of Texas, reads, in part, a8 follows~
s. . .,the,praoeeds of any suoh sale shall be’invested in bonds of the United Statss,~ the State of Tsxas, thabonds of the oounties of the ,State, and the inddpenlent or oomwn sohool distriots, road preainot, drainage, irrigation, navigation. aad’lsvee distriots in this Stati and the bonds of inoorporated oities and towns,~+nd held %y.suoh county aLoone aa a
.
Ron. FL M. Tucker, page 2 (+4?X)
: trust for the benefit of public free aohools therein, only the interest thereon to bo used and expended amually. . . *"
Therefore, it is the opinion of .thic department that the Comais- sionersl Court has the pwer to invest funds belonging to the Permanent S&o01 Fund in tie seourities entrmerated above. See Boydstun vs. Rockwall' . . County, 24 S. FL 272. 1t‘i.e aleo our opinion that your conclusion is correct ih that the Commissioners* Court has no authori.tJ to purohaae ::.ondaprior.to matur- ity date without the consent of the holder of said ~bondsa This department held in Opinion Bomber O-3821.tbat a school distriot has no authority to sell bonds prior iko their maturity date againfft the uill of the oraer, in the absence of express stipulation therefor in the bonds. Citing State ex Stat9 School'Fund Commission, et al, rel. Parker, Attbrney G&x-al, vs.
103 Pac. (2) 8011 44 C. J. 1235j State VE. Keith, 66 Pao. (2) 10691 Brenham ~6. German Ameriaan Bank, 144 U. S. 173.
Prustingthat~this aneuers your question, we,are' . .
very truly youl-s ATTOBNEY GFXERAL OFIhw . . ', .~ ::;:. 'By /e/Cl&d Ob BootJ+an i .' ~~ : : : Claud 0. lkothuen AEsietant .~.
COB-eaegw. .’ APPROVED APPROVED : :
Opinion Condtt+e Opinion Condtt+e .ByB'FEB .ByB'FEB ChairmW ChairmW