THICA-ITORNEY GENERAL 

OF TEXAS 

Honorable Albert J. Hutson, Jr. 

Oounty Attorney 

Trinity county 

Groveton, Texas 

Dear Sirr Opinion moo. o+-fg6 

RO: The ca~~~i8sloners' court 

cannot legally invest the 

permanent school fund of a 

oo?raty in such bonds ae 

school boards are authorized 

to issue under Article 2802 R-1, 

Vernon% Annotated Civil 

statutes. 

Your recent request for an opinion of this DepartBlent, upon the 

question as is herein stated has been received. 

we quote fraa your letter aB follows: 

%y the Ccmuiesloiera' Court invest the pemeamit eahool 

fund of the county, (that is, the moneys received for the sale 

of public school land given to the county) in such bcuds as 

sahoolboards are authorized to lseue under tit,. 2802 R-1, 

B. c. S.? 

.iirt. 2824, R. C. S. authorizes the Cmmisa~oners' Court 

to invest such fmds In bonds of the State, of tim County, 

roaddistricts etc, but all these bonds are bonds votedby 

the people and creating a debt Ihat all the property of the 

polltlcal subdivision voting said bond Is back of, while the 

bonds authorized by Art. 2802 E-1 are bonds that say be issued 

by the school board and are expressly not an lndebtednese 

created against the vbole district but only against the particala- bullding, stadium, etc. 

"It is my opinion that such bonds as are authorized 

by Art. 2&Z E-l are not bonds that Art. 2824 authorizes 

the pemanent school fund to be invested In, and that, 

therefore, a Oaaissioners' Court oamot legally invest their 

pe-ent school funds in such bonds as Art. 2802 R-1 

aut&orizes.w 

'Em pemsnent school fund ia provided for in Sectloas 2 aad 6 

of Article VII of the Ccpetitutlorr of Texss. The above mentioned Seati&m 

of the Constitution read ka follovs: 
Honorable Albert J. Hutson, Jr., Page 2 (O-2796) 

Seotlou 2. “All fImA.9, lands and other property 

heretofore set apart and appropriated for thesupport of 

pub110 eohools; all the altamats motions of land reseneA 

by the State out of the ~rants hsretoforemaAs or that 

may hem titer be made to rall.roaAm or other oorpara.tlonr of 

soy uature whatsoeveri one-half of the pub110 Aaaaln of the 

State; and all mm ofmoney tibatmy oune to the State 

fram the sale of any portion of the saum, shall constitute 

a perpetual publio school fund." 

aaction 4. "All lands heretofc're or hereafter granted 

to the soversl aountfee of thsn State for educational 

purposes, are of rigb t the property of said counties respectively to which they yer+ granted, ad fltle %eretc 

la vested in said countlee, ad no sdverae p0setf.m 'I;" linftation ahall ever be wailable ag&fnst %e %tle or" any oomty. 

Bach county may sell or diupoee of fL,s land in whole or in pert 

In manner to be provided by the cmtisfomra' court of the county. 

Aotualsettlem residing on said Lmds shall be protected in the 

prior rights of ymchaefng ':1e same to tie axttnt of the52 settlement, not to exceed 160 a,~%, at 3~6~ prize fIxed by said court, 

which price shall not Incluiliie tie mix of existing SmprcvTnents 

made thereon by such ee%lers. Said la&a, ati the proceeds 

thereof whm sold, shall be h?ld by said counties alone as a 

+M.uat for the benefit of pzbl!,s x&.oo.l~ tieref?l; eafd prxeede 

to be %uvestid 31 bonds of +a% Baited States, the S+ate of Texas, 

or counties or in said S*sta, or in acch o+&er securities aud 

under 6uch restrictions as may It pr3s;ribed by law; anti the 

couuty shall be reapom:bk ;L p c al.* lwrar~bner.t.3; the iaterest 

thereon and other revenue, except the pr%nu:pal S~ILU be available fu~&.~ 

The only etatute that we have bee;. able k fiud wherein the 

Legislature has said hov and vhere t&s mmey shall be imeated is 

Article 2824 of Vernon's Axotsted Civil Statutea, vh?ch reada as 

follows: 

"Each corurty xmy sell or diepose of +fe landa graated to it 

for educatlonai purposes lu sa& manner aa may be'@rovlded by tha 

commlsafoners' court o? such county9 and the prooeeds of say 

such sale shall be inveeted in bonds of the United States, the 

Stats of Texas, the bonde of the comt9=+ of the Stats, and the 

lndependentor camon sckoold~atricts, rosd precincta, drairrrrge, 

Irrigation,navl&&m aad levydistrfcts iu this State, aad the 

bonds of lsmoqorated cities And towns, and held by auoh osunQ 

alone as a trust fos the benefit of public free schools therein, 

only the interest thereon to be used and txpmded azmually." 
Honorable Albert J. Hutaou, Jr., Pa@ 3 (O-2796) 

Artlole 2802 E-l, Vernoa’s Amotated Civil Statutes, smonS 

o~ther things rpeoifioally proriAer that% 

*(I * l Ilo ruoh obligation shall ever be a debt of any 

rohool Airtrlot or city, but rolely a ohargo upon the property ao moumbered, anA ohallaever be reokoned in deternlnlng the power of aay lruoh eohool Al&riot or olty, to 

lame bonds for any other purpose authorized by lnw; provided 

that noelection for the issuanoe of the bonds herein authorized 

shall be necessary, but the same may be authorized by majoriQ 

vote of the board of trustees of such independent school district 

or the governfng body of such cfty. * l * 

"The holder hereof shall never ha761 the right to demand 

payment of thla obligation out cf any fund@ raised or to be 

raised by taxation. l l l Iii0 land upon which is altuated 

any of the schml impmvements other than ae described shall 

ever be nubject to the payment of any indebtedness created 

hereunder, nor shall any encumbarmcs ever be executed thereon. 

l l ií 

aie above mentioned pwvisions of the Coustitution and Article 

2624, aupra, specifically set forth the kind of bonds that may be bought 

piti funds obtained fran the sale of la~6 granted for educational purposes or any other portion of '%a permanent school funds, and said fuuda 

shall be invested in no otPler ponds except those specifically named and 

contemplated by the Ieglslaturs as above mentioned. The bonds authorized 

to be isaued by Article 2802 E-1, aupra, are not bonds named or contermplated by the provislons of the CouefFtntlon or 6tat~t.e above mentioned. 

Therefore, you are respectfilly a&laed tha t it ia the opiulon of this 

Deparbuent that the caumissloner6' co-et oaonot legaally invest t&e permanent school fund of the county in such bonds as school boards are 

authorized to lame under Article 2802 E-l, supra. 

!Pruatlng that the forsgol;lg f%ly enswere your inquiry, tie me 

APPROVQ) OCT 9, lf3kO 

/s/Gerald c. Manu 

A’PICZWW GEfCEBAL OF TEXAS 

Yours very truly 

A'l'IWKZTGEXERAL OF !ITXAS 

By /e/ Ardell Wflliarcs 

Ardell William 

Assistant 

APPROVED OPIlUOH cm BY /s/ BUB CHADMAE