THEATTORNEYGENERAL 

Honorable Jerry Sadler 

Commissioner 

General Land Office 

Austin, Texas 

Dear Mr. Sadler: 

OF TEXAS 

AUSTIN a. TEXAS 

March 7, 1961 

Opinion No. NW-1010 

Re: Problems relating to the 

sale of lands acquired by 

the Veterans' Land Board 

at a foreclosure sale. 

By judgment entered in 1956, a "block sale" by the 

Veterans' Land Board to 28 veterans was set aside; the deed or 

deeds conveying the block of land to the State were also set 

aside; and the State,was awarded recovery of a substantial sum. 

As a part of the judgment, it was provided that the judgment debt 

was discharged upon the payment of a portion of the judgment and 

the execution of a note by the defendants for the balance, secured 

by a deed of trust on the land. The note was executed and 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 in Article 542lm, V.C.S.? 

3. Does anything in the above procedure conflict with 

Article 5416, R.S.? 

In addition to the above, your request contains two 

other questions which are conditioned upon a negative answer to 

question No. 1, and because we 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 creating a 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 . . . shall be a part of the Veterans' Land Fund". 
Honorable Jerry Sadler, page 2 (WW-1010) 

You have furnished us with the form of resolution 

customarily used by the Veterans ' Land Board in connection with 

the issuance of State bonds as above authorized. Such resolution provides that each bond shall contain the following language: 

"Payments of the principal of and 

interest on this bond and the series of 

which it is one, E jhall be 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 shall be appropriated for the purpose by the Legislature in accordance with 

the Constitution and laws of the State. 

Also all lands purchased by the Board until 

the sale thereof shall be held for the benefit 

of the Fund. A Reserve created and maintained 

within the Fund is pledged irrevocably to the 

payment of the principal of and interest on 

the Bonds and is to be administered and used 

in the manner prescribed in the Resolution." 

(Emphasis added.) 

The aforesaid Constitutional provision further states: 

"The lands of the Veterans' Land Fund 

shall be sold by the State to Texas veterans 

of the present war or wars, commonly known 

as World War II, and to Texas veterans of 

service in the armed forces of the United 

States of America subsequent to 1945 as may 

be included within this program by legislative 

act, in such quantities and on such terms, and 

at such prices and rates of interest, and under 

such rules and regulations as are now provided 

by law, or as may hereafter be provided by law." 

The followin 

(Article 5421m, V.C.S; 7 

provisions of the Veterans' Land Act 

deal with sales of land by the Board: 

Section 2(A) authorizes the Veterans' Land Board "to 

provide by resolution for the use of the Veterans' Land Fund in 

such manner as to effectuate the 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 such policies, rules and regulations as may be 

necessary, not in conflict with the provisions of the law, to 

insure the proper administration of 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 lands previously sold by 

the Board, upon any re-possession for any 

cause by the acts of the purchasers or any 

other lawful reasons, shall again become a 

part of said Veterans' Land Fund." 

Section 13 provides: 

"Land shall not be sold at less than 

its actual cost to the Board, except that 

forfeited land may 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 such manner as the Board 

may prescribe". 

Section 21 authorizes the Board to make rules and 

regulations not inconsistent with the Act which shall be considered a 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 secured by the lands purchased 

through the Veterans' Land Program and the proceeds from the 

sale thereof. The method of handling the "block deal" in 

question does not alter the fact that Veterans' Land Fund monies 

were expended in the original purchase 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 judgment of the Court, title was revested 

in the seller subject to the note and deed of trust in favor of 

the State, such indebtedness and lien securing same were 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 question No. 1 in the affirmative. 

As to the sale of the land after foreclosure by the 

State, it is noted that Article 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 subsequent 
Honorable 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 the Attorney General "in the manner acquired and 

upon such terms and conditions as he may deem most 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 Constitutional Fund and is 

governed by the provisions of the Constitution set forth above, 

wherein the land is required to be sold to designated Texas 

veterans (see Section 14 of Article 5421m) "in such quantities, 

and on such terms, and at such prices and rates of interest, 

and under such rules and regulations as are . . . provided by 

law". 

The Legislature cannot alter the Constitutional requirement that land be sold only to veterans. 

of the Act.) As to the terms of sale 

(See Section 23 

as now provided by law, 

see Sections 12, 13, 15, 16, 17, 19(A) and 23 of the Veterans' 

Land Act, and the rules and regulations of the Board authorized 

under Section 21 of said Act. 

The Constitution, as aforesaid, provides for the sale 

of lands of the Veterans' Land Program under 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 Constitutional requirements, form the 

complete rule and guide for the disposal of land belonging to 

the Veterans' Land Fund. This answers your second question. 

We are of the opinion that Article 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 San Antonio and A. P. Ry. Co. v. State, 128 Tex. 33, 

95 S.W.2d btJ0, b87 (193b), it is said: 

"The rule is well recognized that, in 

ascertaining the intention of the Legislature, which must always govern in the 

construction of statutes, where seeming or 

real repugnant provisions appear, the specific 

statute more clearly evidences the intentions 

of the Legislature than the general one, and 

therefore it will control." 

Your third question inquires as to whether any of 

said procedure conflicts with Article 5416, R.S. This article 

describes the lands belonging to the State Permanent School 
. - 

Honorable Jerry Sadler, page 5 (WW-1010) 

Fund. Sale of such lands is under the jurisdiction of the 

School Land Board. Article 54210-3, V.C.S. 

In Opinion No. v-782 of this office, written in 1949 

by Honorable Ben H. Rice, III, Assistant Attorney General, the 

authorities were exhaustively reviewed and the opinion concluded 

that previously patented lands re-acquired by the State for a 

special legislative purpose were 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 special purpose , and their method of sale 

is designated therein. In our opinion, they form no part of the 

Permanent School Fund. We answer question No. 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 "block deal" in a 

1956 judgment of the Court, will, if foreclosed on and bid in by the State, become 

a part of the Veterans' Land Fund. The 

subsequent sale of same by said Board 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