OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
state Roosd of Rcbluation
Austin, Texas
Gentlemen: Attentlonr Mr. Gaynor Kendall
Opinion Rumbar 0-4QjO
Ret Does the Sto
aatlon have
authorize th
ur request for an opinion
auucunt of the State
interest refknding
terast than the bonds
uldver to the first question ifiLn
minimum 1imltatLoIl
ar 3X they are aoaepted in lieu of and
to refund Snterest coupons detached from bonds held
by the Permanent S&o01 Fund?"
stata,Board of Btlu~~cnion*
page #2
In reply to your rir6t qwstion, ~Artiarle
iq89, Re-
rided Civil Matutes, as amended by Chapter 33l, Adis or the
Re&ul& Session or the Forty-fourth L6 slature, authcrices
68hOOl astriet6 to nfund bonds vhl8h fita y have ?egally
168Md', into "new bonds, bear- the asme or a less rate of
interests" it further provldes "thatsriatund interestooupoas
may be refunded in like manner * l l, and that the State !Pnas-
urer shall, upon order of the State Board of Rdueaticn, exchange
bonds not matured held by hlx ~forthe Permanent s&o01 Fund for
the new xM'unding bond6 Issued by the sutqlnoorporatlon under
the prov3.slo~ of this 6ubdlvl6lon, in 8ase the rate of interest
on the new bonds is not less than the rate 0r interest on the
bonds ror vhi6h they am exchanged."
In oonneetlon with the question submlited, wwther
m&tured interest@mpons may be refunded ror the aeaount$f
the Av65.lable&ho:@ Fund into interest refondlng bonds We-
lng a lesser rate%han the bonds frownwhich they are detached,
it wl.llbe notit that the statute authorlses the dlstriets to
refund'lnoturedlnteresteoupcn6 intobonds %esHng the skum or
A les6’rate 0r lntenst', and that the liaitation~upon tb& paver
0r the State Board to mcept mwmg bond6 inlieu 0r 0bup
florurheld ror the accounts 0r the school fuuds is that no me-
fondingbollds.shallbe accepted in exchange for "bond6 not
matureda if the nfundlmg bonds bear Intonat at a lesser rata
thani.heunderlySngbond8.
ItwfYbeseen~omtheaboostbottb6Zmgi41aeur6
dram adl6tlnoti0nbctw66n "maMe0upn6"and %nmatumd
8cupc~*~ and authori6~8 school dfStrlet6 to *fund -6 rrhish
'Referring to yam second question, Artlole 2671, as
amended by the Forty-slHbLegislature, read6 a6 follows%
"The Comptroller of StdeBoard sballe&~ful.ly I
exriminethe bonds, obltgations, or pledges 60 offWed
and tnvestlgate the ~facts,tandlngto show the validity