This is in response to your recent request for our opinion upon the following questions:

"NS.11 you kindly advise what disposition should be made of money procured fromthe sale under fore- closure of oounty school land, under the following oonditionsr

"In 1909 Garaa County sold 516.5 acres of its school land and retained a vendor's lien note against it in the principal sum of t5165.00. Default occur- red in the payment of interest on this note until the 8um of t2493.87 had accrued at the time of the sale by Sheriff under order of sale issued out of District Court in foreclosure prooeedings, and the additional sun of $784.85 a* attorney's fees.

"Should this entire sum now be plaoed in the Permanent School Fund on the theory that the purohas- or forfeited and a resale oacurredl "Should the smn of $5165.00 be placed in the Per- manent Fund and the remainded in the available fund? "Should the sum of $5165.00 be placed in the Per- manent fund, the sum of $2493.87 in the available fund and the BIXII of $784.85 placed in the oounty's general fund, recompensing it for attorney's fees the fomclos- ure suit necessitated?

"Should the sum of $5949.85 (whioh is principal and attorney's fees) be placed in the Permanent Fund and the sum of $2493.87 in the available fund." *2 Hon. V. J. Campbell, Page 2 (o-5509)

You are familiar with the pertinent portions of Article 7, Section 6 of the Texas Constitution, providing that:

'1. . Each oounty may sell or dispose of its lands in whole or in part, in manner to be provid- ed by the Commissioners' Court of the oounty. . . . Said lands, and the proceeds thereof, when sold, shall be held by said counties alone as a trust for the benefit of publio schools therein; said proceeds to be invested in bonds of the United States, the State of Texas, or counties in said State, or insuch other seourities, and under suoh restrictions as may be presoribsd by law; and the counties shall be re- sponsible for all inVestientSJ the interest thereon, snd other revenue, exoept the prinoipal shall be available fund,"

Suoh sales may be made for oash or upon oredit, Delta County v. Slackburn, 100 Tax. 51, 93 5.W. 420. Dhen acting pursuant to this authority the oounty makes an exeoutory contract of sale retaining a vendor's lien and a default oocurs, It will ordinarily have an election of remedies. It mav elect to disaffirm the sale won breach and make a new sale, West

636, or it may 8

S.W. (2d) 385. In the event it pursues the latter course it affirms its original contraot of sale. Hill v. Preston, 119 Tex. 522.

lVe therefore advise you that when your county foreclosed its vendor's lien it affirmed the original contract of sale and the prinoi- pal amount, #4,165, should be credited to the Permanent School Fund, axid the accrued interest, )2,493.67, should be placed in t&County Available Fund. Article 7, Section 6, Constitution of TCWUJ Article 2284, Vernon's Annotated Civil Statutes8 37 Texas Juriaprudunoe 8623 Dallas County v. Club Land and Cattle Camp Taber v. Dallas County, 101 Tex. 241, 106 ct.) 66 S.W. (SUP. ^[2941]

We also advise that for the reasons set forth in Opinion No. O-985 of this department, a copy ofwhioh $8 enclosed herewith, the sun of $784.85, the amount recovered expended for attorneys' fees should be placed in the General Fund.

Yours very truly APPROVED AUG 20, 1943 /s/GERALD C. MANN OFTEXAS ATTORNEYGWERAL

ATTOPZ?SY GElPERAL OFTEX4S

Ry /a/ Jas. D. &sullen Jas, D. sullen Assistant JDSrEp~egw Enol.