THEATSORNEYGENEZRAL
OF TEXAS
Honorable Jerry Sadler Opinion No. C-352
Commissioner
General Land Office Re: Whether the Veterans' Land
Austin, Texas Board may use any funds from
the Veterans' Land Fund after
December 1, 1965,,to pay the
purchase price on lands they
agreed to purchase prior to
Dear Mr. Sadler: December 1, 1965.
Your recent letter to th1.soffice presents the questlon
as to whether the Veteranst Land Board may, prior to December
1, 1.965,enter into a commitmentfor the purchase of land
which, due to the details,of a title examinationand other
closing matters, defers the ayment of the purchase price
subsequent to December 1, 19%5.
Your written supplementalinformationalso states
that:
"When the veteran's contract and other
papers are mailed to him for the purpose of
signing the contract with the seller, the
Veterans' Land Board, at that time, is able
to accept the assignment of his contract and
process his applicationknowing that, when
the contract is assigned to the Board, there
is money available to handle that particular
transaction.
"The Board makes this determinationbased
on experience of past percentages of contracts
received back after executionby the veteran
and seller and those originallymailed out to
the veteransand not-returned. We receive
approximately20$ of the contractsproperly
executed by the seller and the veteran and
assigned to the Board out of 300$ that are
mailed out. Eighty per cent of the veterans
are not able to find the land that they want,
or, for some other reason, do not execute
their contract with the seller, thereby en-
abling them to participate in the Program.
-1667-
Honorable Jerry Sadler, page 2 (C-352)
"After the descriptionof the land, the
veteran's qualificationsand other require-
ments have been properly met, the land is
appraised by the Veterans' land Board ap-
praiser. Upon receipt of the appraisal,
the file is properly reviewed by numerous
people within the Veterans' Land Board,
including the Commissionerand the Chief
Clerk, and a commitmentis issued for the
exact amount of money that will be paid by
the Board for the land."
Article III, Section 49-b, Constitutionof the State
of Texas, provides:
" . . The additionalbonds herein author-
ized may be sold in such installmentsas
deemed necessary and advisableby the Vet-
erans’ Land Board. All monies received
from the sale of land and for interest on
deferred payments on land purchased with
the proceeds of such additional bonds, shall
be credited to the Veterans' Land Fund for
use in purchasing additional lands to be
sold to Texas veterans, as herein provided,
in like manner as provided for the sale of
lands purchased with the proceeds from the
sales of the bonds provided for herein, for
a period ending December 1, 1965; provided,
however, that so much of such monies as may
be necessary to pay interest on the addi-
tional bonds herein provided for shall be
set aside for that purpose. After December
1, 1965, all monies received by the Veterans'
land Board from the sale of the lands and
interest on payments, or so much thereof as
may be necessary, shall be set aside for the
retirement of said additionalbonds and to pay
interest thereon, and any of such monies not
so needed shall not later than the maturity
date of the la?trmaturingbond be deposited to
the credit of the General Revenue F'undto be
appropriatedto such purposes as may be pre-
scribed by law. . . .
Likewise, Section 9a, Article 542&n, Vernon's Civil
Statutes, provides:
-Y668-
Honorable Jerry Sadler, page 3 (C-352 )
"Each year until December 1, 1965, there
shall be set aside and paid from the Veterans1
Land Fund sufficientmoneys to pay interest
and principal due on all bonds theretofore
issued and outstanding. After December 1,
1.965,all moneys received by the Veterans'
Land Board under the terms of this Act, or
so much thereof as may be necessary, shall
be set aside and used to pay principal and
interest on bonds then outstandingas they
shall mature. When there is in the Veterans'
Land Fund an amount fully sufficientto pay
all,intereston, and principal of, the out-
standing bonds due and to become due there-
after, any moneys in excess of such amount
shall be deposited to the credit of the
General F'undof the State of Texas to be
appropriatedto such purposes as may be pre-
scribed by law. . . .
It is our opinion that a commitmentmay be made any
time prior to December 1, 1965. Once a commitmenthas been
made prior to that date, payment of the considerationmay
be made upon completion of the final closing details even
if that should occur after December 1, 1965. Where a commit-
ment has been made prior to December 1, 1965, to say that
payment of the considerationcould not be made after
December 1, 1965,would be unduly restrictiveof the provi-
sion in Article III, Section 49-b that purchases may be made'
until that date.
Consequently,it is our opinion, that a commitment
having been made prior to December 1, 1965, payment of the
considerationcan be made subsequentto that date.
SUMMARY
If a commitment to purchase land pursuant
to Article III, Section 49-b, Constitutionof
the State of Texas,:~isentered into prior to
December 1, 1965, payment of the consideration
can be made subsequentto that date.
Yours very truly,
WAGGONER CABB
Attorney General of Texas
GCB:afg
-1669-
Honorable Jerry Sadler, page 4 (C-352)
APPROVED:
OPINION COMMITTEE
W. O.,Shultz, Chairman
J. C. Davis
Grady'Chandler
Pat Bailey
Paul F%y
APPROVED FORTRE ATTORNEY GENERAL
BY: Roger Tyler
-1670-