Hon. J. W. Crumley Opinion No. M-841
Assistant County Attorney
Wood County Courthouse Re: May any of the following
Quitman, Texas 75783 expenses be paid out of
the Interest and Sinking
Fund maintained to retire
Wood County Flood Control
Bonds: (1) Lake keepers
salaries: (2) Upkeep and
insurance on lake keepers
homes on county lake prop-
erty; (3) Electricity for
county lakes; (4) Patrol
boats and motors; and, (5)
Cost and repair of trucks
involved in the mainte-
Dear Mr. Crumley: nance of the lakes.
You have written our office and asked the following
question:
"Would it be legal to pay out of the Inter-
est and Sinking Fund for the Wood County
Flood Control Bonds the following expenses:
1. Lake keepers salaries;
2. Upkeep and insurance on lake keepers
homes on county lake property;
3. Electricity for county lakes;
4. Patrol boats and motors; and,
5. Cost and repair of trucks involved in
the maintenance of the lakes?"
Article 839, V.C.S., states:
"NO city or county treasurer shall honor
any draft upon the interest and sinking
fund provided for any of the bonds of
such city or county, nor pay out nor di-
vert any of the same, except for the pur-
pose of paying the interest on such bonds
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.
Hon. J. W. Crumley, page 2 (M-841)
or for redeeming the same, or for invest-
ment in such securities as may be pro-
vided by law."
The language of the statute is quite specific in its
prohibition that the money in interest and sinking funds
provided for bonds may be used only for the purpose of
paying interest on the bonds or for redeeming the same, or
for investment in such.securities as may be provided by
law, and for no other purpose.
In addition, Attorney General's Opinion WW-1084 (1961),
a copy of which is enclosed, states:
"The moneys in the interest and sinking
funds may not be used for additional pro-
jects since such moneys may be used only
for the purpose of paying the interest
on such bonds, or redeeming the same,
or for investment in securities as may
be provided by law..."
Therefore, the answer to your question is no.
SUMMARY
-------
Interest and Sinking Funds provided for
bonds of any city or county may be used
only for the purpose of paying the inter-
est on such bonds or for redeeming the
same, or for investments in such securi-
ties as may be provided by law, and for
no other purpose.
Yours very truly,
CRAWFORD C. MARTIN
Attorney General of Texas
/
by:Tb &&.& -
NOLA WHITE
First Assistant
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. ” . .
Hon. J. W. Crumley, page 3 (M-841)
Prepared by A. J. Gallerano
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
W. E. Allen, Co-Chairman
Bob. Lattimore
Hal Sharpley
Jack Goodman
John Reeves
MEADE F. GRIFFIN
Staff Legal Assistant
ALFRED WALKER
Executive Assistant
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