March 24, 1967
Honorable Jesse James Opinion No. M - 46
State Treasurer
Austin, Texas 78711 Re: Eligibility of the
described bonds as
collateral for state
Dear Mr. James: deposits.
Youhav,e-requested an opinion as to the ellglbllity
of Harris County Water Control and Improvement District
Number 1. Waterworks and Sewer System Combination Tax and
Revenue Bonds, Series B 1951, dated February 15, 1951,
(hereinafter referred to LS “the Bonds”) as collateral
for state deposits.
Bonds of water control and improvement districts
are not included In the eligible classes of securities
enumerated In Article 2529, Vernon’s Civil Statutes;
therefore, the Bonds are not eligible under the general
depository laws.
No. c-664
No. V-838
No. O-2870
Harris County Water Control and Improvement Distr$.ct
Number 1 was organized pursuant to the authority found in
Article 7880et. seq., Vernon’s Civil Statutes. Bonds of
such districts are not eligible as collateral security
for state deposits unless the issuing district has quali-
fied as a “Municipal District” pursuant to the provisions
of Article 7880-lga, Vernon’s Civil Statutes. A careful
examination of the bond transcript authorizing the issu-
ance of the Bonds (Comptroller’s Registration No. 27450)
and your opinion request does not reflect that Harris
County Water Control and Improvement District Number 1
has ever qualified as a “Municipal District .‘I In the
absence of such quallflcatlon, It is the opinion of this
Department that the Bonds are not eligible as collateral
security for state deposits.
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Honorable Jesse James, Page 2 (M-46)
SUMMARY
In the absence of a showing that Harris
County Water Control and Improvement Dlstriut
Number 1 has complied with Article 7880-lga,
Vernon's Civil Statutes, the district's Water-
works and Sewer System Combination Tax and
Revenue Bonds, Series B 1951, are not eligible
as collateral for state deposits.
truly yours,
07 &zz-
C. MARTXN
MPM:mh General of Texas
Prepared by M. Paul Martin
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Hawthorne Phillips, Chairman
W. V. Geppert, Co-Chairman
Marvin Sentell
2. T. Fortescue, III
Fielding Early
STAFF LEGAL ASSISTANT
A. J. Carubbi, Jr.
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