OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable W. J. UoConnell, Preeldmt 

North Texarr State Teaoherrs Collage 

Denton, Texan 

Dear Sir: 

Opinion Number 04eO;‘~ \ 

Re: Doe6 $hho‘.?Oaxd or Re+&nttr j 

of Ncirth Texas State Teds&- 

November 7th. 

asp followa; 

Veo. 1. * * * and the Board or R6genta or 

the State Teaohere College * * l are hereby aevorally authorized and empowered to oonetruot or 

aoquire through runas or loans to be obtalnsd 

from the Government 0r the United States, or any 

agenoy or agenolea .thereor, oreated under the 

National Reoovery Aot, or oth%rwlse oreated by 

.the Federal Government or from any other aouroe 
Honorable W. J. EoConnell, page $8 

private or publlo, without oost to the State 

or Texas, and aooept title, subjaot to suoh 

oondltlona and 1lmLtations aa may be presorlbad by eaoh of said Boards, dormitories, kltohens and dining hells, hospitals, libraries, 

student aotlvity buildings, -ala, athletlo 

buildings and stadla, and auoh other buildinga 

as may be needed ror the good of the lnatltutlon and the moral welfare and social oonduot 

0r the 5tUa5nt5 or such inetltutlona when the 

total ooat, type or oonstruotlon, oapaolty or 

suoh buildings, ee well as the other plans and 

apeolrloatlons hsve been approved by the respectlva Governing Boards; provided, hOwever, 

that the Leglalature shall never make an appropriation out or the general rpnd or thla 

State, either in the regular approprletlon bill 

or in a supplemental or emergenoy approprletlon 

bill, ror the purpose or’ equipping or ror the 

purpose or purohasing and installing any utility 

oonneotlona.in any of the buildings ereoted under 

and by virtue Or the provlalons or thla Aot.* 

"QBO. i?. * * * That said Boords are further 

authorized to make any oontrsot with reference 

to the collectlon ead dispodltion of the revenuee 

&rived rmn anr builainix a0 oonstruoted in the 

5OWi.5itiOn OT OOI35trUOtiOn. loeMK5ment. and maint5nanOe of any buildlnR or buildinna’aoauired 

hereunder. In reference to the aoquisitlon or 

student activity bulldlngs, stadla, gymnasia, and 

all oharaoter or athletlo buildings, sald,Boarda 

are authorized also to make oontraote with reference to the oolleotlon 6na disposition or rqvenuea 

to aoorue to suoh respeotlve lnatltutlone rrom 

sctlvltlea, athletlo events, and games in which 

said reopeotlve institutiona psrtlolpate away 

from said Institutions, a6 well as at said inetltutlons; and in antlolpatlon oi the colleotlon oi 

such revenuea, and for the purpose of paring the 

cost or the oonetruotlon or aoqulsltion 0r eald 
Honoreblb V. J. YoOonnell, page $3 

‘building or buildings and grcunda, said Boards 

are severally ampolosred by resolution to euthorize, sell, and~dellver lta negotiable bonds or 

notea mm tima to tlaas OBd in suoh emount or 

amounts as It msy oonalder naoeasary. The reea 

and otmrgea so rlxad ror the use or any such 

bulldlng.or buildings shell not be collected 

arter payment In full shell have been oonpleted 

ror the bullding or bulldlnge Sor which said 

rees shall be pledged. Theraatter the right 

of said respaotlve Boarde to fix oharges en$ 

fees shell depend on laws other than this Act 

ae hereby- emended. Any bonds or notes Issued 

hereunder shall beer lntereat at not to exoeed 

air (6% ~per oent per annum, and shall-rlnally 

meture not more. than forty years from data.” 

Wee. 3. Sub&at to the above reatriotlona, 

each of said Boardd Is given complete dlsoretion 

In riring t?ie r0m,. oonaltlona end betalla or 

suoh bonds or notesb’ Any bonds or notes issued 

hereunder shell not be an indebtedness’b~ the 

State of TemS,‘but ahall be -payable solely ‘rrom 

the revanuaa to be derived rrom the operetion~ or 

seld buildingsi provided that euoh bonda msy be 

retlnanoed by.the aaLa Boarda whenever auoh aotlon 

is round by the Board to be neoetmaryi 

WProvlded,~ however, that tbe~ provIalona or this I 

Aot shell not epply,.~to, any proceadlnga, levlae, or 

to any bonde or warrenta issued thareunder, the 

valIalty or which baa’been Oont56tQd or attachsd 

in suit or lltlgatlon.whIoh la pandI!q at the-time 

this Act becomes e law, or which may be riled within thirty (30) dsya.qrter this Aot:beoonee a law.” 

.~ ~. 

‘+ ‘*~~ * a Y / 

“See. 9. movlaea further that each or said 

Boards meg meke such oontreota aa rzay be neces- 

- 
Honorable X. J. UoConnell, page $4 

Under thIa artlolc the Legislature has authorlzad the Boer8 of Ragents of North Texas Ststa Teaoher6 

College to aoqulre oertaln revenue-bearing property and 

to make any oontreot with re~erenoa to the oolleotlon and 

dlsposftlon or the revenuea derived rrom any bulldlng so 

oonstruoted in the aoqu.lsltfon or oonatruotlon, msnegament ana z3alntenenoe of any beilalng or buildinga aoqulrad thereunder. 

Thererore, it ii3 the oplnIo~ or this department 

that the Board ot Regents has the authority to enter into 

a contreot with reference. to insuring said property and to 

pledge a portion or the lnooloe from revenue-bearing properties .for lnsuranoe purpoaes;when said property has been aoquired under the euthority,, of Artlole 26030, Vernon’s Annotated Civil Statutes. :i 

Ii bonds are Issued in Fayment or the ‘oonstruotlon 

or buildinga euthorlzcd under- thla article, it la our opinion that the Board hns the authority to oontraot in the 

bond order that a ~oertaln portlcn of the rev8nuea be set 

as186 to pay for the lnauranoe on said bulldln&3.r,; The bond 

order in suoh ceaea usually oontalna a olausa ei3ltlar .f,o 

the following t 

93uoh portion Gr the grosa revenues CO be 

received rrom the operation or said ~dormitory 

as ~%y be required to oreate and melntein the 

runae hereinatter provided tar shall be set 

eslae monthly into two separate end spcolal 

funda, which are hereby provided tor,and oreated, the first of which funds ahall be known as 

CFER~ITICN AXD h%I?iENA?:CE Z’CXD, and the seoond 

Or which shall be known ae BOND Frm, There 

shell be kept within the BGSD FED a sreolal 

aocount hereby provided for and cr%attd,,, known 

as the RESXRVX ACCOUNT. The OPERATIGN A?JD UAINTmxcE FUND shall be at all times eutrioient 

to provide for tho reasonable cost or maintain- 

~~~~~~~~~~~~~':~~~~~l~~~u~~~~~ :Ei%&+Fshall be :n the amounts and 

aoomuleted In ihe manner~proviaea ror * * ** 

(~ndersooring ours). 
31 

Honorable W. S., bWonnel1, page #S 

However, we aall your attention to the fact tbst 

this depesrtaent kas repeatedly held that no insurenoe 

polioy ahull be takeri out upon any of the publlo building8 

OS thin State, nor upon the oontentr thereof, in the absenoe of 8 speoltio appropriation for that pwrpoee. The 

reason for thle holding la atstsd in our opinions xwtibers 

o-3000, O-104 and o-201, oopler of which are enclosed ror 

your informtion. 

Theretore, fire lnsuranoe Fremiwne cannot be paid 

out of the loos1 oolleqe funan or coy otber rued or the 

college, In the absence of express le&ilstive authority. 

However, Artiole 2CkO3o gives to the Board of Regenta power 

tq oontraot to keep buildings erected under the authority 

or that artlole insured ror the protection of bondholdera. 

Such insuranos 

nues collected B 

remltms my be aid only out ot the reveron the partlcu P ar building or build3qa 

covered by the bond iaaue. 

Trusting thet- thle answera your questIon, we are 

P.ICW? ASSISTANT 

ATTCI~XY GENERAL 

COB-s 

%lols.