## THICA-ITORNEY 

## GENERAL OF TEXAS

Honorable

AlbertJ. Hutson,Jr. OountyAttorney Trinitycounty Groveton,

Texas

Dear Sirr Opinion moo.o+-fg6 RO: The ca~~~i8sloners' court cannot legallyinvest the permanent

school fund of a oo?raty in such bonds ae schoolboards are authorized to issueunder Article 2802 R-1, Vernon% AnnotatedCivil statutes.

Your recent requestfor an opinionof this DepartBlent, upon the questionas is herein statedhas been received.

we quote fraa your letter aB follows:
%y the Ccmuiesloiera' Court investthe pemeamit eahool fund of the county, (that is, the moneys receivedfor the sale of public school land given to the county)in such bcuds as sahoolboards are authorizedto lseueunder tit,. 2802 R-1, B. c. S.?

.iirt. 2824,R. C. S. authorizes the Cmmisa~oners' Court to investsuch 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 propertyof 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 schoolboard and are expressly not an lndebtednese createdagainst 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 thatArt. 2824 authorizes the pemanent school fund to be investedIn, and that, therefore,

a Oaaissioners' Court oamot legallyinvest their pe-ent school funds in such bonds as Art. 2802 R-1 aut&orizes.w

'Em pemsnent school fund ia providedfor in Sectloas 2 aad 6 of ArticleVII of the Ccpetitutlorr of Texss. The abovementionedSeati&m of the Constitution read ka follovs:HonorableAlbert J. Hutson, Jr., Page 2 (O-2796)

Seotlou 2. “All fImA.9, lands and other property heretoforeset apart and appropriated for thesupport

of pub110 eohools;all the altamats motions of land reseneA by the State out of the ~rantshsretoforemaAs or that may hem titer be made to rall.roaAm or other oorpara.tlonr of soy uaturewhatsoeveri one-halfof 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 landsheretofc're or hereaftergranted to the soverslaountfeeof thsn State for educational purposes,

are of rigb

t the propertyof said countiesrespectivelyto which they yer+ granted, ad fltle %eretc la vested in said countlee, ad no sdveraep0setf.m 'I;"linftation ahall ever be wailable ag&fnst %e %tle or" any oomty. Bach countymay 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 residingon said Lmds shallbe protectedin the prior rightsof 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 existingSmprcvTnents 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 %uvestid31 bonds of +a% Baited States, the S+ate of Texas,
or countiesor 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 thereonand 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 dieposeof +fe landa graated to it for educatlonai

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

court o? such county9and the prooeedsof say such sale shallbe 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 proriAerthat%
*(I * l Ilo ruoh obligation

shall ever be a debt of any rohool Airtrlotor 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 schooldistrict
or the governfng

body of such cfty. * l *

"The holderhereof shall never ha761 the right to demand payment of thla obligation out cf any fund@ raised or to be raisedby taxation. l l l Iii0

land upon which is altuated any of the schml impmvements other than ae describedshall
ever be nubject to the paymentof any indebtedness created hereunder,

nor shall any encumbarmcs ever be executedthereon.
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 obtainedfran the sale of la~6 granted for educationalpurposes or any other portionof '%a permanentschool funds, and said fuuda shall be invested in no otPler ponds except those specifically named and contemplated

by the Ieglslaturs as abovementioned. The bonds authorized to be isauedby Article 2802 E-1, aupra, are not bonds named or contermplatedby the provislons of the CouefFtntlon or 6tat~t.e

abovementioned. Therefore,

you are respectfilly a&laed tha

t it ia the opiulonof this Deparbuentthat the caumissloner6' co-et oaonot legaally invest t&e permanent school fund of the county in such bonds as schoolboards are authorized

to lame under Article 2802 E-l, supra. !Pruatlng

that the forsgol;lg f%ly enswereyour 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/ ArdellWflliarcs ArdellWilliam Assistant

APPROVEDOPIlUOH cm BY /s/ BUB CHADMAE