..: 324
OFFICE OF THE Al7ORNEY GENERAL OF TEXAS
AUSTl N
QROVER SELLERS
*+TORNLI QLNLRAL
. .
325
**id1010 780-b Thet where a aajorlty ot
the rasldant property tarpay4r8, king qualltled
llo o to rofs any ooanty, rot- on the progoal-
tlon, h~~tlag rots4 at an lloctlon ha14 in auoh
oountl oalled by tha ooadoaionara oourt of such
OOUnty, in favor Of the laauan~a oi the bond8 of
suoh oounty for any purpose authorloed in chap-
ter 1, Tltlo l6, R~vla~ Clrll Utatutas of 19911,
or Choptor 8, Title U, Ratlna4 clrll Gtatuter
of 1955, the oanvsss or such tots rwaallo~ suoh
mtjorlty, haring baao raoordod ln the ailnutaa or
suoh eomalsalonars oourt, and wherr tha ordor of
8aid OOWlS8iOnOr8 Ciourt oalliag suoh bond alao-
tlon, and the not&as of auoh b o nd lleotlon,
provided that such bonds were to be I4auab by
suoh ooiamiaalonars oourt, payabls aarlall~ or
othor*laa, not 4~0*04ing the aaxl!aum period of
tluia atlpulatad ln sueh rlrotfors order and oleo-
tlon notlaos, and whom therrafter aald oo~s-
sloners oourt of suoh aounty, b7 orders adoptad .
and raoor4a4 in its ainutas, ooatraotod r0r tha
solo oi raid bonds at not lora than par and aa-
orurd latereat, an4 ~uthorlmd th4 lasuana4 or
add bonds in aooordanoa vlth tho term aa
prorlslons of mob oontraot OS aalo, pesccrlb-
l&q, is luoh order8 the data oi aald bonds, the
mturltles of a014 bonds, and the rate of ln-
toraat said bonds are to bow, au4 lovying the
tar to pay the lntareat on aald bon48 an4 pro-
rldo a sinking fund sufflolant to pay the prlaol-
gal theroor at maturltt, and #al6 bonds wars ap-
proreQ bl tbr Attorary Wner8l 8nd roglater4d by
tea Comptroller of Pub110 kooounts and wore tbare-
aftor sold at a ml04 of not 14013 than pclr.an4
aooruod intersat, saoki ruoh elaotlon and all act8
0116 procaedlngs had &ad toiran is oonneotlon thcra-
with by luoh ooutity oomlaalonors oourt la roapeot
of raid bonda, the d&to Of aald bonda, tbs aatmlty
dataa of sold bonds, tha lntorsot thereon, and the
lavy of tares in poynent thereor, fira hereby ag-
gr~vad, confiraeci, ratlflrd, legallsad end rulld-
,,ted; and raid bonds, and tha oou~~na 4Vld4nOlW
the interrat thorBOA la and for eaoh of the Year0
ltlpulatad la auoh raoorded orders, ara herabr
oooatituted the valid and aubalrrtlng obllgatioo8
of atioh oounty, and sold bond8 an4 ooupons shell
b payable or radasmbla only OII tha =tUitY
or rraeaption deteo atlpulated in auoh reoorded
ordera and in the rvoe of etroh of said bond8
end ooupons .’
.
“‘artlo& 780-b. That rhero tha oommlarIonsrr
OOUCt Of @w OOUItl bar hU@d tbr bO&O Of lUOh
OOUfitjiOr th JBUr~OOO Of iUli41fU3,
XWfU5di56, OM-
tMl1106 and in 1l.U of any bond8 of luoh Oounty
1ogaU.y Iaaua4 ior oar jwpoar lathorIza4 in
Chapter 1 Title 18, 6avlaod Civil Statutoa oi
1911, or beptar 2, Title 22, #orIs Clvll St&u-~
tea 0r l985, auf, ~316 ruP4in~ or rtiundiug bonda
were duly lppro~od by tbo titb o r no y
Oenoral lnQ
regIetera4 by the Coaagtr liar o? Pub110 hooounts
In 8ooorQnoo with the lowr lpplIoablo to the
Iaauanc~ oi rrfundlngi bonds, the or4er or orbarr
of ouoh oomala~ionsra oourt lpprovln8 the oontraot
between ouch oounty an4 the holdar or holder8 oi
OU0h OUt8tCd~& bmda iOr tbr pur&V36. Or flMbill(L
or rofundlng ouoh outatandin& bon40, proooriblxq
the d&e of aaI4 funding or rrtundlt@ bondr, the
2bturity dater 0r ~14 rmdi56 or refuntllng bonda,
the rate ot intrraat aaid fu.u&,lag or rafundlng
bon40 were to boa and ~wyin& sixi ta to pep
lntoraat OILlald fun4144 or nrumUn$ bond8 an4
to produaa a alnklng fund lusflolant to pay tb
prinolpal therrof et mturlty, herIn& boon rc-
cordad in tha tinutea or raosrda oi woh county
oomiaaionara oourt, all act8 an4 prooaa4Iu&a had
an4 done In omnaotlon tharevlth by auoh oouaty
ooainIaalonora court, an4 the ooarity Judge, oounty
clerk, oounty trebauror, or any other oounty of-
floial hsvlng any 4utls8 to parform in reapact to
th6 i~aueaor 0r aal iding or rrtundi56 bond8
afa horrby apprOv84, ooaflrnmd, ratified, la~al~tad
en4 validata4; crad lalb funding or ratPndI.ng bond8,
~4 tha coupon8 avIdenclng tho interest thereon In
rod for enoh or the yraia ltlpuleta4 In luoh re-
corded order or orbra, es8 baraby oonetltutod
the velid an4 8ub8leting oblI~tlon8 of such WUnty,
ln accardanoa rlth the tarma end jwovislono of auot
rocordad order or ordera, and eel4 inndin& or re-
funding b.xida end ooupona tiitirato appertaining
shell La payable or ra4eo.sibls only on the s!itur-
itg or redeaptlon dvteo atipul~tad in such IY-
corda order or orders an4 15 tha fuoa Of aaoh Of
a;,id runding or rofundlog bond8 and 00uPone.’
*t l l.
f
@morrible Cbel L. Xonlieter, pago 4
It ia tha opinion oi tbla dopertaunt that Srotloo 1
of Hour* 0111 115 la oonatItutIonal. The juprm8 Court of Texas
in Coohran County V. Mann, 198 S. Yu. (Zd) 589 and Norton v. Tom
CM) 849 (writ 0r error re?uaod) heJl4
of Chapter 2, Tit10 22, Ha+Isa~ Civil
statute8 of 1925, and Chapter 1, Tltl~ 3.8, havlaad Civil Stotutea,
of lQll, the oounty oommIarioaera @ oourt ha4 the right to redoem
tha bonda luthorlzad under aal4 ltatuto at any tlrm after said
bonds ha4 bran Iaautd SW a ;IerIOf oi flvr years, prorIds no
option wlaa raaerva6; an4 It aa option was r*aerved, the oounty
h&d the rl&ht to redoam, tinder any oiroumdtanoea, after a period
of ten years.
The Suprosa Court, la lfteot, held that tba outstand-
ing bon48 authorieod by raid atatut~a zero bIu4lw aontraata an4
t&t the right of redemption was a part of 8814 oontraot.
The suuprama Court in Dalloa County v. LOokbart, Stott
‘Treasurer, 96 8. D. (lid) 60,65, be14 that tha Ight of redamptIon
by refunding was l valuable rlgt an4 not rubjtot to b@ dareate
by a bond holder.
Saotion be 0r Art1010 5 of the Conatltutloa 0r Tgxsa,
reads, in part, 68 follower
.Tha kt~Ialatwa shall huvo no power to au-
thorlu ay county, city, town or politloal oorpora-
tlon or aubdlvlaIon of the State to lend its oredlt
or to grant pub110 taonay or a thln& Oi ?al~a la al6
of, or to any Individual, lasoolatlon or oorporatian
whatsoever. l ’ lI
Conalderlng as14 oonstltutlonpl provlalon in oonJux tl m
with the reterrod to authorities, it IO the opinion Or this de?tirt-
3ent th3t jeotlon & 0r lrrld kot la unoonatItutlo5ul, imofer da it
citteapta to change the oontraot between the oountiaa and t!Ie bond-
huld~era. The Aot would confer “a thing of value” on the bondholders
vclthout h rbtiproo01
Zontrol DIatrlot v. Eaann
~cz~a); T. A Y. 0
713, (Coo. app.); halby County T. Provident
CO . , 35 r‘ed. (Zd) 608 606,(mrIt of oortorari refused) See 6180
Howard T. Henderroa Ckaty., Al6 i+. YI. (24) 479, (writ'or error re-
?udad); hods8 urllllr~ C , alma, 70 s. K. (24) 8769 ~0.~4
Llstrict No. 4, Shelby Cott:: v, ,,Urcd. C&S.Pi. (Zd) la;.-
. .
Thsrv are other rerlour aonrtltutlonal quortlonr
rai#ed br the prmirlonr Or Seotlon a oi 8Oid Bou88 Bill 113,
but W d0 Oot d,m tt IkO0088lbr~ t0 di8OU88 tb& in V!ieU Of th
&0r. holdbsl(t.
BY