Untitled Texas Attorney General Opinion

Honorable‘19. & Tuoker CauntyAttorney Colllngsworth csunty Wslllngton,Teams. ~DearSir* qelion Ho.*0-4669 Be1 Legalityof aoamissloners’ oourt purohasingbonds out of oounty PermanentEohool Funds. Ws aoknawledgereoeiptof your opinionrequestof reoentdats and quote from your letteraa followsa *The’MldwayCfsmaon BohaolMst&t ln this,soun@ dsslrk t0 retire aome bonds that are not sulajaatta call beforedue date thereof, therefore, muld it bs penularlbXe for the Conmieslonere~ Court of Co&lingsworth County,Texalr, to purohare maid ‘bondsand pay.for esunewith CountyPerma- nent BohoolFun&t 1, *Followingyour OpinionRoe .&5821 ofi,date &uaf 21, l!& I do not be- lieve that suoh sala aan be made wlthoutthe oonesntof holder of said bozJd.9.“~~ The law applioableto the l~eatmen% af the Couu~ Per&went SchoolPond is found la Artlole9, Seotdon6 of the Constititlonof Texas, and Artiole2824;RevisedCivil Btatutesof Texas, Artiole,?,Section6 of.theConstltutlonreads, in part, as follower a. . . Said lands,and t&e prooeedsthereof,when sold,.shall‘beheld by said ooCntlesalone aa a trust for 43mbenefit of the publiosohools; therein:said prooeedrto 'belnyeo%$m~mlnJ&s @ tho_Jnit_ed States.the State of Tetiias; or oountdesin aaid State, or in such other securi&c.. and under suohrestrlotionsa8 may be presoribedby law; and the oounties shall be responsiblefor all inrehtmen%~ . . .” - &tiole 2824,Revised Civil Statutesof Texas, reads, in part, a8 follows~ s. . .,the,praoeedsof any suoh sale shall be’investedin bonds of the UnitedStatss,~the State of Tsxas, thabonds of the oounties of the ,State, and the inddpenlentor oomwn sohooldistriots,road preainot,drainage, irrigation,navigation.aad’lsveedistriotsin this Stati and the bonds of inoorporatedoitiesand towns,~+ndheld %y.suoh county aLooneaa a . Ron. FL M. Tucker,page 2 (+4?X) : trust for the benefit of publicfree aohoolstherein,only the interest thereon to bo used and expendedamually. . . *" Therefore,it is the opinionof .thicdepartmentthat the Comais- sionerslCourt has the pwer to invest funds belongingto the Permanent S&o01 Fund in tie seouritiesentrmeratedabove. See Boydstunvs. Rockwall' County, 24 S. FL 272. .. 1t‘i.e aleo our opinionthat your conclusionis correct ih that the Commissioners* Court has no authori.tJ to purohaae::.ondaprior.to matur- ity date withoutthe consentof the holder of said ~bondsa This department held in OpinionBomber O-3821.tbata schooldistriothas no authorityto sell bonds prior ikotheir maturitydate againfft the uill of the oraer, in the absenceof expressstipulation thereforin the bonds. CitingState ex rel. Parker,Attbrney G&x-al, vs. Stat9 School'FundCommission,et al, 103 Pac. (2) 8011 44 C. J. 1235j State VE. Keith,66 Pao. (2) 10691 Brenham ~6. GermanAmeriaanBank, 144 U. S. 173. Prustingthat~thisaneuersyour question,we,are' .. very truly youl-s ATTOBNEYGFXERALOFIhw .. ', .~ ::;:. 'By/e/Cl&d Ob BootJ+an i .' ~~ : :: Claud 0. lkothuen AEsietant .~. COB-eaegw. .’ APPROVED : OpinionCondtt+e .ByB'FEB ChairmW