### THEATTORNEYGENERAL

Honorable Jerry Sadler Commissioner General Land Office Austin, Texas

Dear Mr. Sadler: 

### OF TEXAS
AUSTIN a. TEXAS

March 7, 

### 1961

OpinionNo. NW-1010 Re: Problems relating to the sale of lands acquired by the Veterans'Land Board at a foreclosure sale.
By judgmententered in 1956, a "block sale" by the Veterans' Land Board to 28 veteranswas set aside; the deed or deeds conveyingthe block of land to the State were also set aside; and the State,was awarded recovery of a substantialsum. As a part of the judgment,it was provided that the judgmentdebt was discharged upon the payment of a portion of the judgmentand the execution of a note by the defendants for the balance, secured by a deed of trust on the land. The note was executedand is now delinquent.

You request our opinion on the following questions: 1. If the State acquires the land through foreclosure of the lien aforesaid, does such land become part of the Veterans' Land Fund?
2. Must the Board re-sell the land so acquired under the terms set out inArticle 542lm,V.C.S.?



### 3. Does anything in the above procedure conflictwith Article 

### 5416,

R.S.? In addition to the above, your request contains two other questionswhich are conditionedupon a negative answer to questionNo. 1, and becausewe are answering such question in the affirmative,we do not answer such other questions.

Article 

### 3,Section 49-b of the Texas Constitution authorizes the Veterans' Land Board to issue up to two million dollars in State bonds "for the purpose of creatinga fund to be known as the Veterans' Land Fund", to be used for the purchase of land for veterans, and further provides that "all lands ,thus purchased
. . . shallbe a part of the Veterans' Land Fund".Honorable Jerry Sadler,page 2 (WW-1010)

You have furnishedus with the form of resolution customarilyused by the Veterans'Land Board in connectionwith the issuance of State bonds as above authorized. Such resolution provides that each bond shall contain the following language:

"Paymentsof the principal of and interest on this bond and the series of which it is one, E jhallbe made primarily from the Fund, into which shal: 1 be deoosited the Droceeds of the bol nds, the proceeds from the sale of the landsacquired by the Board, and from such other money as shallbe appropriated for the purpose by the Legislature in accordancewith the Constitutionand laws of the State. Also all lands purchased by the Board until the sale thereof shallbe held for the benefit of the Fund. A Reserve created andmaintained within the Fund is pledged irrevocablyto the payment of the principal of and interest on the Bonds and is to be administeredand used in the manner prescribed in the Resolution." (Emphasisadded.) The aforesaid Constitutionalprovision further states: "The lands of theVeterans' Land Fund shall be soldby the State to Texas veterans of the presentwar or wars, commonlyknown as World War II, and to Texas veterans of service in the armed forces of the United States of America subsequentto 1945 as may be includedwithin this program by legislative act, in such quantities and on such terms, and at suchprices and rates of interest,and under such rules and regulationsas are now provided by law, or as may hereafterbe provided by law." The followin (Article5421m,V.C.S;7 provisions of the Veterans' Land Act deal with sales of land by the Board: Section 2(A) authorizes theVeterans' Land Board "to provide by resolution for the use of theVeterans' Land Fund in suchmanner as to effectuatethe intention of the Constitution and of the law;
. . . to provide for the forfeiture of contracts of sale and purchase and the resale of forfeited land;
. . . and to formulate suchpolicies, rules and regulationsas may be necessary, not in conflictwith the provisions of the law, to insure the proper administrationof the law and to carry out the intent and purposes thereof."Honorable Jerry Sadler,page 3 @W-1010)

Section 8 of the Act provides: II

. . .All landspreviously soldby the Board, upon any re-possessionfor any causeby the acts of the purchasers or any other lawful reasons, shall again become a part of saidVeterans' Land Fund." Section 13 provides: "Land shallnot be sold at less than its actual cost to the Board, except that forfeited landmay be resold under the provisions of Section 19(A) hereof at less than its actual cost to the Board.
. . ." Section 14 lists the veterans entitled to the benefits of the Act.

Section 19(A) contains rules for the sale of forfeited land to be held "at such times and in suchmanner as the Board may prescribe".

Section 21 authorizes the Board to make rules and regulationsnot inconsistentwith the Act which shallbe considereda part of the Act.

Section 23 provides for the sale of land remaining unsold on December 1, 1959.

It is clear to us that repayment of the Veterans' Land Bonds was intended to be securedby the lands purchased through theVeterans' Land Program and the proceeds from the sale thereof. The method of handling the "blockdeal" in question does not alter the fact thatVeterans' Land Fund monies were expended in the originalpurchase of same and that said fund has not been reimbursed for such expenditure. When the land was first bought by the Board, the land became a part of the Fund. When, under judgmentof the Court, titlewas revested in the seller subject to the note and deed of trust in favor of the State, such indebtednessand lien securing samewere a part of such Fund. If such lien is foreclosed and the land is bid in by the State, such land will again become a part of the Fund. We answer questionNo. 1 in the affirmative.

As to the sale of the land after foreclosureby the State, it is noted thatArticle 4401; R.S., sets out the procedure for bidding in property for the State on foreclosure sales,and Article 4403, R.S., provides for the subsequentHonorable Jerry Sadler, page 4 (WW-1010)

sale or other disposition thereof by the agent or attorney bidding the property in for the State,with the advice and consent of theAttorney General "in the manner acquired and upon such terms and conditionsas he may deemmost advantageous to the State". We do not think that Article 4403 is applicable to sales of land from the Veterans' Land Fund.

Said fund is a special ConstitutionalFund and is governed by the provisions of the Constitution set forth above, wherein the land is required to be sold to designatedTexas veterans (see Section 14 ofArticle 5421m) "in suchquantities, and on such terms, and at suchprices and rates of interest, and under such rules and regulationsas are . . .provided by law". The Legislature cannot alter the Constitutionalrequirement that land be sold only to veterans. of the Act.) As to the terms of sale (SeeSection 23 as now provided by law, see Sections 12, 13, 15, 16, 17, 19(A) and 23 of theVeterans' Land Act, and the rules and regulations of the Board authorized under Section 21 of saidAct.

The Constitution,as aforesaid,provides for the sale of lands of the Veterans' Land Programunder terms, regulations, etc. as may be provided by law. The provisions of the Veterans' Land Act are detailed and plenary; and, in our opinion,they, along with the aforesaid Constitutionalrequirements,form the complete rule and guide for the disposal of land belonging to the Veterans' Land Fund. This answers your secondquestion. We are of the opinion thatArticle 4403, supra, is not applicable in any degree to the sale of such lands. That statute is a general law, whereas the Veterans' Land Act deals specifically with lands of the Veterans' Land Program.

In SanAntonio and A. P. Ry. Co. v. State, 

### 128Tex. 

### 33, 95 S.W.2dbtJ0,b87 (193b), it is said:

"The rule is well recognized that, in ascertaining the intention of the Legislature, which must always govern in the constructionof statutes,where seeming or real repugnantprovisions appear, the specific statutemore clearly evidences the intentions of the Legislature than the general one, and therefore it will control." Your third question inquiresas to whether any of saidprocedure conflictswith Article 

### 5416, R.S. This article describes the landsbelonging to the State Permanent School. -

Honorable Jerry Sadler,page 

### 5 (WW-1010)

Fund. Sale of such lands is under the jurisdictionof the School Land Board. Article 54210-3,V.C.S.

In OpinionNo.

### v-782 of this office,written in 1949 by HonorableBen H. Rice, III,AssistantAttorney General, the authoritieswere exhaustivelyreviewedand the opinion concluded that previouslypatented lands re-acquiredby the State for a special legislativepurposewere not a part of the "unappropriated public domain" and were not a part of the Permanent School Fund. Copy of said opinion is attached. The Legislature has recognized that such lands are not school lands. See Article 5382d,V.C.S., and especially Section 

### 1.6 thereof. The lands of the Veterans' Land Fund, as above pointed out, are dedicated by the Constitution and statute for a specialpurpose, and theirmethod of sale is designated therein. In our opinion, they form no part of the Permanent School Fund. We answer questionNo. 

### 3 in the negative.

SUMMARY

Land on which the Veterans' Land Board has a deed of trust lien by virtue of the rescission of a "blockdeal" in a 1956 judgment of the Court,will, if foreclosed on and bid in by the State, become a part of theVeterans' Land Fund. The subsequent sale of sameby saidBoard will be governed by the requirements set out in Article 

### 3,Section 49-b, Texas Const.,and Article 542lm,V.C.S. Such lands,when acquired by the State,will not be a part of the State Permanent School Fund. Yours very truly,
WILL WILSON Attorney General of Texas

JAS:afg- .

Honorable Jerry Sadler,page 

### 6 (WW-1010)

APPROVED: OPINION COMMITTEE: W. V. Geppert, Chairman
L. P. Lollar Leon Pesek Martin DeStefano
REVIEWED FOR THE ATTORNEY GENERAL BY: Leonard Passmore