~Honorab,LeJ. W. E@ar Opinion No. ~~-1083
~Commisslnn~r .oi %&lcatlm
Austin, Teaai3 &: Whether an Independent
school district may place
proceeds from the sale
of bonds, not immediately
needed, on secured
interest bearing time
,deposits with a state opt
national bank of this
state other than its
Pear ‘Hr. Zdgagsr: school district depository.
‘Ilou have requested an opinion from this office to .?
determine rrhrfher an Independent school district may place
proceeds ~fs*aathe sale OS bonds, not immediately needed,
on soured interert bearing time deposits with a state or
national bank of this state other than its school district
Ueposltorg.
,I , ‘;
The &ovisl~ons of Article 2832, Vernon’s Civil Stat-
utes, arc appllcabl,e hsre and are set out in part below:
‘In any Independent dbtitbrlct of more
,than one hundred fifty (150) scholastloa,
uhethsr It be la a city uhl;bhLhas::asrsum&d
control of the sahoole within Its limits,
or a rrorporatlon for school purposea only,
and whether organized under general law OF
created by special act, the treasurer of the
school fund shall be that person or oorpora-
tion who offers satisfactory bond and the
bert bid o interest on the ,average daily
balanaea f or time depoaitd for the prlvl-
lege of aatlnq as such treasurer. The
treasurer when thue selected shall serve
Sor a term of two years and until his suc-
ceseor shall have been duly selected and
quallfled and he shall be required to give
bond in an amount equal to the estimated
amount of the total receipts coming an-
nuallr into his hands, when such bond Is
a perrcnal bondi provided, that when a
Honorable J. W. Edgar; page 2 (w-1083)
bond Is executed by a surety company or
Is a bond other than a personal bond, suoh
bond shall be In an amount equal to the
highest estimated dally b&3ance for the
current biennium, to be determined by the
governing body of such school district;
provided, further that tiuuh governing body
may, in lieu of the bond herein authorized,
accept a deposit of approved ee~urltles,
which seourltles may Include bonds of the
United States, or of this State, or of any
collnty, city, town or independent school
district in the State, or Anticipation Tax
Warrants and/or Anticipation Tax Notes
legally issued by the governing body of
such school dlatrlct, which shall be
deposited as such governing body may
direct, in an amount sufficient to ade-
quately protect the funds of such school
dlstrlcfi In the hands of the selected
Treasurer.”
The language used in the above statute Is clear and
there is no doubt but that deposits could only be made In
the designated school district depository, under Its ro-
visions. The Legislature, in 1953, passed Artlole 27 8 6d
of Vernon’s Civil Statutes which Is set forth in part be-
low:
“From and aftier the effective date of
this Act, any school district within the
state which has or may have on hand any sums
of money whioh are proceads received from
the issue and aale of bonds of any such
school district, bither before or after
the effeotlve date of this Act, which pro-
ceeds are not Immediately needed for the
purposes for which such bonds were issued
and sold, may, upon order of the board of
truetees of auoh school dZatrict, place the
proceeds of such bonds on interest bearing
time deposit secured in the manner provided
in Article 2632, Revised Civil Statutes,
with a state or national banking corpora-
tion within this state, or Invest the pro-
ceeds OS such bond8 in bonds of the United
States of America or in other obligations
of the United States of America, as may be
determined by the board of trustees of the
school district; . . .*
Honorable J. W. Edgar, page 3 (~~-1.083)
Article 2786d, Vernon's Civil Statutes, contained a
clause repealing all laws or parts of laws which were In
conflict with It to the extent of the conflict only. Under
this act dealing speclflcally with the investment of the
proceeds received from the Issue and sale of bonds, there Is
no doubt that Article 2786d, Vernon's Civil Statutes, did
repeal that part of Article 2832, Vernon's Civil Statutes,
which limited such deposits to the designated depository.
However, in 1959, the Legislature amended Article
283% Vernon's Civil Statutes, by House Bill 120, Acts 56th
Leglsl .ature, Regular Session, 1959, chapter 48, page 94, by
adding three words which have been placed In brackets In that
portion of Article 2832, Vernon's Civil Statutes, quoted
previously. The three words are 'or time deposits."
It should be noted that Article 2832, as amended In
1959, does not contain a repealing clause and the language
used Is general, though the speclflc,,additlon is made to
Include the words "or time deposits. It Is a well accepted
rule of statutory construction that the enactment of a general
law does not ordinarily operate as a repeal of a particular
or special law by lmplloatlon , although both relate to the
same subject matter. Flowers v. Pecos River Authority, 138
!I$. .ll, 156 S.W.2d 260 (1941); 39 Tex. Jur. 149, Statutes,
Inthls particular instance, since Article 2832,
Ve&on'i Civil Statutes, as amended~ln 1959, does not contain
a repealing clause and Is general in nature, It Is the opinion
of this office that an Independent school district may place
proceeds from the sale of bonds, which are not Immediately
needed, on secured Interest bearing time deposits with a
state or national bank of this state obher than Its school
district depository,
SUMMARY
An Independent school district may place
proceeds from the sale of bonds, not
immediately needed, on secured Interest
bearlng time deposits with a state or
national bank of this state other than its
school district depository.
Yours very truly,
WILL WILSON
Attorney General of Texas
.
Honorable J. W. Edgar, page 4 (~~-1083)
JCS:ms:lgh Assistant
APPROVED:
OPINION COMMITTEE
w. v. Geppei6, Chairman
Elmer MoVey
J. Arthur Sandlin
Dudley McCalla
B. H. Tlmmtlns, Jr.
REVIEWEDFOR THE ATTORNEY
GENERAL
BY: Morgan Nesbitt