Case Information
*1 324 ..: OFFICE OF THE Al7ORNEY GENERAL OF TEXAS
AUSTl N QROVER SELLERS
*+TORNLI QLNLRAL
. .
325 **id1010 780-b Thet where
a aajorlty ot the rasldant property tarpay4r8, king qualltled l lo oto rs of any ooanty, rot- on the progoal- tlon, h~~tlag rots4 at an loctlon ha14 in auoh oountl oalled by tha ooadoaionara oourt of such OOUnty, in favor Of the laauan~a oi the bond8 of suoh oounty for any purpose authorloed in chap- ter 1, Tltlo l6, R~vla~ Clrll Utatutas of 19911, or Choptor 8, Title U, Ratlna4 clrll Gtatuter of 1955, the oanvsss or such tots rwaallo~ mtjorlty, suoh haring baao raoordod ln the ailnutaa or suoh eomalsalonars oourt, and wherr tha ordor of 8aid OOWlS8iOnOr8 Ciourt oalliag suoh bond alao- tlon, and the not&as of auoh b ond l leotlon, provided that such bonds were to be I4auab by suoh ooiamiaalonars oourt, payabls aarlall~ or not 4~0*04ing the aaxl!aum period of othor*laa, tluia atlpulatad ln sueh rlrotfors order and oleo- tlon notlaos, and whom therrafter aald oo~s- sloners oourt of suoh aounty, b7 orders adoptad and raoor4a4 in its ainutas, ooatraotod r0r tha than par and aa- solo oi raid bonds at not lora latereat, th4 lasuana4 or orurd an4 ~uthorlmd add bonds in aooordanoa vlth tho term aa prorlslons of mob oontraot OS aalo, pesccrlb- l&q, is uoh order8 the data oi aald bonds, the mturltles of a014 bonds, and the rate of ln- toraat said bonds are to bow, au4 lovying the tar to pay lntareat on aald bon48 an4 pro- rldo a sinking fund sufflolant to pay the prlaol- gal theroor at maturltt, and #al6 bonds wars ap- proreQ bl tbr Attorary Wner8l 8nd roglater4d by tea Comptroller of Pub110 kooounts and wore tbare- aftor sold at a ml04 of not 14013 than pclr.an4 aooruod intersat, saoki ruoh elaotlon and all act8 procaedlngs had &ad toiran is oonneotlon thcra- with by uoh ooutity oomlaalonors la roapeot oourt raid bonda, d&to Of aald bonda, tbs aatmlty dataa of sold bonds, tha lntorsot thereon, and the fira hereby ag- lavy of tares in poynent thereor, confiraeci, legallsad end rulld- gr~vad, ratlflrd, ,,ted; and raid bonds, and tha oou~~na 4Vld4nOlW the interrat thorBOA la and for eaoh of the Year0 tlpulatad la auoh raoorded orders, ara herabr oooatituted the valid and aubalrrtlng obllgatioo8 of atioh oounty, and sold bond8 an4 ooupons shell b payable or radasmbla only OII tha =tUitY rraeaption deteo atlpulated in auoh reoorded ordera and in the rvoe of etroh of said bond8 end ooupons .’ That rhero tha oommlarIonsrr
“‘artlo& 780-b. tbr bO&O Of l UOh OOUCt Of @w OOUItl bar hU@d OOUfitj iOr iUli41fU3, XWfU5di56, th JBUr~OOO Of OM- tMl1106 and in 1l.U of any bond8 of l uoh Oounty 1ogaU.y Iaaua4 ior oar jwpoar l athorIza4 in 18, 6avlaod Civil Statutoa oi Chapter 1 Title 1911, or beptar 2, Title 22, #orIs Clvll St&u-~ tea 0r l985, auf, ~316 ruP4in~ or rtiundiug bonda were duly l ppro~od by tbo titb o rnoy Oenoral l nQ regIetera4 by the Coaagtr liar o? Pub110 hooounts In 8ooorQnoo with the lowr l pplIoablo to the Iaauanc~ oi rrfundlngi bonds, the or4er or orbarr of ouoh oomala~ionsra oourt l pprovln8 the oontraot between ouch oounty an4 the holdar or holder8 oi bmda iOr tbr pur&V36. Or flMbill(L OU0h OUt8tCd~& or rofundlng ouoh outatandin& bon40, proooriblxq the d&e of aaI4 funding or rrtundlt@ bondr, the dater 0r ~14 rmdi56 or refuntllng bonda, 2bturity the rate ot intrraat aaid fu.u&,lag or rafundlng bon40 were to boa and ~wyin& sixi ta to pep lntoraat OIL l ald fun4144 or nrumUn$ bond8 an4 to produaa a alnklng fund usflolant to pay tb therrof et mturlty, herIn& boon rc- prinolpal cordad in tha tinutea oomiaaionara or raosrda oi woh county
oourt, all act8 an4 prooaa4Iu&a had an4 done In omnaotlon tharevlth by auoh oouaty ooainIaalonora court, an4 the ooarity Judge, oounty clerk, oounty trebauror, or any other oounty of- floial hsvlng any 4utls8 in reapact to parform to th6 i~aueaor iding bond8 or rrtundi56 0r aal afa horrby apprOv84, ooaflrnmd, la~al~tad ratified, en4 validata4; crad alb funding or ratPndI.ng bond8, ~4 tha coupon8 avIdenclng tho interest thereon In rod for enoh or the yraia tlpuleta4 In uoh re- corded order or orbra, es8 baraby oonetltutod the velid an4 8ub8leting ln accardanoa rlth oblI~tlon8 such WUnty, tarma end jwovislono of auot inndin& or re- rocordad order or ordera, and eel4 funding b.xida end ooupona tiitirato appertaining shell La payable ra4eo.sibls only on the s!itur- itg or redeaptlon dvteo atipul~tad in such IY- corda order or orders an4 tha fuoa Of aaoh Of a;,id runding or rofundlog bond8 and 00uPone.’
*t l l .
f
@morrible Cbel L. Xonlieter, pago 4
It ia tha opinion oi tbla dopertaunt that Srotloo 1 The juprm8 Court of Texas of Hour* 0111 115 la oonatItutIonal. in Coohran County V. Mann, 198 S. Yu. (Zd) 589 and Norton v. Tom
CM) 849 (writ 0r error re?uaod) heJl4 of Chapter 2, Tit10 22, Ha+Isa~ Civil statute8 of 1925, and Chapter 1, Tltl~ 3.8, havlaad Civil Stotutea, of lQll, the oounty oommIarioaera @ oourt ha4 right to redoem tha bonda l uthorlzad under aal4 l tatuto at any tlrm after said bonds ha4 bran Iaautd SW a ;IerIOf oi flvr years, prorIds no option wlaa raaerva6; an4 It aa option was r*aerved, the oounty h&d the rl&ht to redoam, tinder any oiroumdtanoea, after a period of ten years. la fteot, held The Suprosa Court, that tba outstand- ing bon48 authorieod by raid atatut~a zero bIu4lw aontraata an4 t&t the right of redemption was a part 8814 oontraot.
The suuprama Court in Dalloa County v. LOokbart, Stott ‘Treasurer, 96 8. D. (lid) 60,65, be14 that tha Ight of redamptIon by refunding was valuable rlgt an4 not rubjtot to b@ dareate by a bond holder. Saotion be 0r Art1010 5 of the Conatltutloa 0r Tgxsa,
reads, in part, 68 follower
.Tha kt~Ialatwa shall huvo no power to au- city, town or politloal ay county, thorlu oorpora- tlon or aubdlvlaIon of the State to lend its oredlt or to grant pub110 taonay or a thln& Oi ?al~a la al6 of, to any Individual, asoolatlon or oorporatian whatsoever. l ’ I
Conalderlng as14 oonstltutlonpl provlalon in oonJux tl m with the reterrod to authorities, IO the opinion Or this de?tirt- it 3ent th3t jeotlon & 0r l rrld kot la unoonatItutlo5ul, imofer da it citteapta to change the oontraot between oountiaa and t!Ie bond- huld~era. The Aot would confer “a thing of value” on the bondholders vclthout h rbtiproo01
Zontrol DIatrlot v. Eaann
~cz~a); T. A Y. 0
713, (Coo. app.); halby County T. Provident
CO . , 35 r‘ed. (Zd) 608 606,(mrIt of oortorari refused) See 6180 Howard T. Henderroa Ckaty., urllllr~ C , hods8 ?udad); Llstrict No. 4, Shelby Cott:: (writ'or Al6 i+. YI. (24) 479, v, alma, ,,Urcd. C&S.Pi. (Zd) la;.- ~0.~4 s. K. (24) 8769 error re- .
Thsrv are other rerlour aonrtltutlonal quortlonr rai#ed br prmirlonr Or Seotlon a oi 8Oid Bou88 Bill 113, t0 di8OU88 tb& in V!ieU Of th but W d0 Oot d,m tt IkO0088lbr~ &0r. holdbsl(t.
BY