Case Information
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S8d .tO this. d8ptWtElOnt, wing question: now oonstitute a part 0r the3 oo0 purwant to Article poyslefit or these bonds to the urns tr,:s ansu&lon there were a few p/nrticii;ation wns only partial, during -t‘~kLch el;ze t>a ccunty 1CmieJe a%ax for the pcapose or payin 2%'>ortfon of tk:c dabt raqdrewmt, with the mxU.t ticat thara . hns cccuzulnted e scz of alg1-orirmtely $35,000 i&the sinkl~ -*.-.'i L Le... croeted :or the retL-ment of these bonUs.
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Yz. C. Burtt Potter, lkzrch 20, 1939, page 2
The tsr=le unier which the States has undertaken the proceeds of which have been spent to pzy off boxxk vote8, on designated State higbweys, by their wry nature require thzt a county or road district'cont inue secondarily liable for the payment of that inecbtedness inasmuch as the State ke.9 merely a ss~zxa~ the -peyzLent thereo?. E6ch biennium the Legislature appropriates from the State Treasury R sum suffi- cient to meet its propc rtionate part of-the debt so assumec, snd while it is an unlikely contingency, it is entirely possible t&t et some future date the Legislature~mey fail.to appropriate the money ror thispurpose. "Accordingly, it .would fall to the lot or the county or road district to provide funds for the .purpose'of meeting the debt requirements for that year, end in .
.'- the event [3] levy had not.been made of a sinking fund ha8 not
theretofore been created,' the county or road district would be in default on the payments due at t+t,,time. :
" In. our opinion the moneyaccumulated in the sink-- ' 'ir?g Lund by Road Districts 1, 3 and.5, 'should be he14 intact for.
the purpose of mesting such a contingency,'and'tbat the 'county or road district would not be authorized to use this money for shy other-.purpc;e until all bonds and Interest due..thereon 3ave been finallyretired and'disbharged: To otherwise use tb money.than for.the purpose fhr'which it was'cOlle'Ot8d woulfl in our opinion constitute a diversion of funds.-.
Very truly yours ATT&RJ!?Y GENERAL OF TEXAS By (s) ClarenceA;;iFG ,' CEC:S :
.CEC:FO - ,.
APPROVED' "
(S) W. F, MOORE ATTORNEI GBNFRAL OF TEXAS. .