Untitled Texas Attorney General Opinion

.Y -1 1. that the oo~ty *5~ulU legally aontroot with uoue a~umoy to bring togat,hcrt!lobondholders and persuade tttomto exohan,gatheir title percent.bondafor othera bearing a lam rate, and running over a &nger psrlcfl,and to pearthe rrgoncyto 'j~epaX'@ and file appll- oetion for approval of a refunding plan; uurk out glm~~, *to preprr aca dslivor s3.llegal popero necessaryfor tha oonswm6i- tfon of the plans,' ths foe far tie servioes to be paid fro= the roea ena bridge sl inn fuad and not ilerofrom ttieprocssdo of sele, sin00 the p n prov +-Ye BE for no mle.* In the contract submAtted by you, It ~ppeara that in order to make the bonds svsllablc for refund&g, Christie k Company till hcve to so&r@ the outatandlw bends and ~mnce~wi11 bo tho bond- i:oldera,for w.iloae benafft the sinki~& fund wca oraated, and till axchange tbe o;adbond8 for t!m rofundle bonds with full knowledge that the mlakiai:fun4 hns be@n tmed In part to a&a the rafurrdl~ possible, tlmroby oonsentla~ to the 1188 of three tunQ8 for t?mab pUTRose* Tn our opinion haber O-3320, o cog CU whioh oplnfon ia enclosed harcrwlt!i, we held thst the iScardof Eounty and Dlctriot Iload Indrbtciiness has asipleauthority to pay s pmdu~~ for sllg:ble roed bonds and to use t!m sinki= funds of CCUntieB deposited with tiioBoard to r&tire auoh bends, in payment of suah pro&m. Xa based our oonolusion in Opinion O-3320 on provisionsof eubneot@n (m) of sootlon 6 ur &use 911 688 peaeed by the l&h Loidslstura, Eefylar 9ession, 1939. This Acti does ucjt cxprcs31y author?ze the payment 0r a preaium out of these funds, but lo h.piiea rrotu the authority @an&d to purahass th6 bontisprior to maturity, I;1otk3r vorih, the ii06of thee0 funds fcr thet purpo~ is in keeping wit% tiiepurpose f~crurNoh t'lafund wru created, nBpe- ly, cl:eultinate redwtlon cf tha bonds. Your second queatlon is, t:xmerore, auawep5U in the affirmative. Yours very truly