OFFICE OF THE ATTORNEY GENERAL OF TEXAS
HonorableB. M.
County Auditor
wayson county
Sherman,Texas
.:
t: Dear Sir:
tho AvailableaOh6oiMimi on a ~por
f all soholastlosof the county.
h klanoo at t&i8 ~SBO of ~8,890.00
oat sohcmlnuaa aerlreafmm other
stton boln(t-
-Frcm the abwo iorommt~onmula the Wada-
donors' Court bare the authoricyuaae? Ar8lole0,
Sgotlon6, QonstftutlohM~T.xaa, A~tlaloBaB4 UZ
V0rmbn'suwe0a blvll s8atutos,tc tramir the
&.eSl,49 fmm tho aash balssoeof t&o Pommaent _\
& +o inuk to
i me inth sstlo eeunt
in&raw that
the AvailableBohoolhilod06uI.4xeooftethe bone-
tit now ln limit
of iron 1948 80 lWS?" ' .
698
Honorable B. LL Whiteacre, lag.6 ,#z
The imrtlnent part of Article 7, Seation 6 of the
Con6titutlon, read6 a8 follows:
“Said land6 and the proceeds thereaf when
6old ahell be held by said counties alone aa
a truet for the benefit of publio 6ohools
therein; said proceed6 to be invested in bonds
of the United SCate6, the State of Texes, or
oountisa in eaid State, or in such other aeeurl-
the and under such restrictions a8 may be pre-
scribed by law! and the counties shall be
responsible for all investments;the interest
thereon and other revenue eroept the principal
shell be avaflablo funds.*
nrtlolo ESS4 is the Enabling Act, p666ed pursuant to
the above quoted oonetitutional provlslon, 6nd fe substantlal-
ly the name with th6 excsptfon thet it enumerates othor bonds
which my be purchased with the proceeds fram the sale of
land6 granted to tha county for educational purpoaeo.
It will ba noted that only the inoome or the above
eanotioned inveatmnt i6 avellable for annual expenditures in
the operation Gf the auhools of the county. We have hereto-
fore oonoludsd in our opinion number O-825 that a profit M-
aultlng from the purohaso of bond6 at 6 figura below par, and
the subsequent retirement of auoh bonds or sale at a prior in
oxoea6 of that paid, oonatituter in00166 and 16 therefore
eligible to be trnsferred to the Available Sokool lnuzd of
the county.
It is oloar fmm the statommt of facts abom quoted
that the figure of #? 871.47 ir an antiolpatod profit *hi&
oannot noorue until t&e bon46 havo matured and aro pai by
tha i66uing political subdivision. Manifestly, this tlgun
oonstltutsa no more than a “paper profit* end Q~es not repre-
sent cash in hand eligible for transfer to the Available Fund.
notua2ly if et all, it will not aoorua to tho Peraanant Sohool
Fund until the years 1948 to 1965. Exparienoe ha6 proven that
we have no guarantee that bond6 will be paid aooording to the
oontraot reflected therein, and it 16 bepond the power of any-
one to foretell dofinitely tho amount of i6oney that will be
Honorable B. K. Whiteacre, page #S
received for said bonds at any time between the years 1948
to 1965. It 1s our conolusfon that the Commlereioners* court
la not authorized to make a tramfor of oash from the corpus
of the Permanent SchoolFund agaiaet an antlaipated accrual
of profit from bonds at some future date.
You are, therefore advised that in our opinion moh
transfer a8 is contemplated by your question, cannot lawfully
be made, for, obviously, the antlalpatsd profit oa.nnot become
available funds until colleoted.
Vary truly yours
ATTORNEYOZI?lWiLOBTEXAS
,,Jg&budA.~~
Clarenoe $. Crovm
. Assistant
CFX-8
APFROVEDOCT
7, lg4'
,
A~~~pJPjEY
GENERAL
OF TEXAS