# I **OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS**

AUSTIN **4- 0.**  **MIWW ATraalu** **” QmlULL** 

HonorableF. E. Law, h4da0nt 

### BoardOS Dlrsotora A k M College of Teur :'~ **Flrat** NationalBank Howton, Texar

Dear Sir:

-4d principle of law that all ore&ire8 of the Stat4 poaraa8 only euoh powera 48 are oonferred by tha law oreating them, or mioh incidentalpowersaa are neoeaaary to oarry out the purpa80 of their 

### orcation, 

### Therefore, we 

### nwt look for the authority to purohaae such boule, if any exids.hrticla 2669 of Vernon's fdmotatea Civil Statute8

reads as followar

*The Stats Board o? Eaucetlon is outhorlaad ana 0itpower4a

to lnr4at the Psrla4nent Fubllo Free sohoolyunda or the State in bona8 or the United States, the State o? Texas, cr a4 county therao?, eDd the independent or 00m-m Sohool aiatriota, r0na prsolnota,brtlnage, lrrlgation, narlgatlon aad levee **dlstriota** in this State, s&xl the **borda** of inoorporatedcities and towna,and obllgationa and pladgea of the Cninreity or T4~48.~

This article is the EnablingAot passedpursuant to Seation 4# Article 7, o? the Constitution,which reada, in part, as followa

"The Comptroller shell lnveet theprooeada of such salesard o? those heretoforenaae asmay be dlreotedby the Board o? Muoation hereinprovided tar, in the bonds of the **onltsd** Statea, tha State of Texas, or oounties in said State, or $& e other 8eourltieSand under guo+ re6tri~loaa e ~~presorlbedb~aw * c . - This artiole o? ths Constitutionwa8 adopted on August 14, 1889, and became law by proolamation September 25, 1883. The first statute adopted by th4 Legislature appsara in the Aota of 1905, page 263, and was later amended by the Lots o? 1909, page 216. I%oh amendment, inoludlng that o? the Aot8 O? 1929, Forty-iiratLegislature,p4gge573, Chapter 278, Seation 1, enum4ratedadditional bonds inwhloh the State Board of -Kduaation was authori%& to Invest the Stat4 F:erraanent

Sohool Fund. It 844ma olsar that the bonda deeorlbad in your letter oould only aom4under a olaariiioation such s8 thut eaaea by th4 am%ndment of 1929,wherein theFund ~46 permitted to be invested in Wobli~tlone and pledges of the Unitersity o? Texas.” Yanlr4atly, this provlelon cannotbe exterded to include obligationsor pledg48HonorableF. 16. Law, page #3

of theAgricultural end kechenloel College o? Texee, whloh, while referred to in the Constitution88 e branch of the University of Texes, possesses oheraoteristloaend powera peculiar to a separateand independententity, end in our opinion thisportion cr the rtatutewould for this resson be fnapplloabloto the bonds of A t AlCollegementioned in your rsqueet. Further, the law authorizing the iaeuanoe of l uoh a bond expresslyprovides thet it shall not be en obligatlon o? the **A** lk16College,nor shall it be oonatrued to be an obllgation 0s the 3tate 0s Texas, and the holders thereof ahell not be entitled to look to the oolleotlonof taxes ?or the payment thereof,but only to the reven~ea ecorulng ?rom the operation o? the projsot ?or whloh such bondswere lasued.

You 4r4, thererore, advised that the railure or the law to euthorlas the inreatrmnt o? the State Pernmneat SohoolFund in bonas or the olaasaesoribea in your oommsmloation, in our opinion, amounts to an **fnhlbltfon** to the State Board or i$aucation puroheaing auoh type bonds.

Vary truly yours

Aaaiatant