I OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

4- 0. MIWW 

ATraaluQmlULL ” 

Honorable F. E. Law, h4da0nt 

Board OS Dlrsotora 

A k M College of Teur :'~ 

Flrat National Bank 

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 incidental powers aa 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 

sohool yunda 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 inoorporated cities and towna, and obllgationa 

and pladgea of the Cninreity or T4~48.~ 

This article is the Enabling Aot passed pursuant 

to Seation 4# Article 7, o? the Constitution, which reada, 

in part, as followa 

"The Comptroller shell lnveet the prooeada 

of such sales ard o? those heretofore naae as may 

be dlreoted by the Board o? Muoation herein provided tar, in the bonds of the onltsd Statea, tha 

State of Texas, or oounties in said State, or $& 

e other 8eourltieS and under guo+ re6tri~loaa 

e ~~presorlbedb~aw - * c . 

This artiole o? ths Constitution wa8 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-iirat Legislature, p4gge 573, 

Chapter 278, Seation 1, enum4rated additional bonds in whloh 

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 aom4 under a olaariiioation such s8 thut eaaea by th4 am%ndment of 1929, wherein 

the Fund ~46 permitted to be invested in Wobli~tlone and 

pledges of the Unitersity o? Texas.” Yanlr4atly, this provlelon cannot be exterded to include obligations or pledg48 
HonorableF. 16. Law, page #3 

of the Agricultural end kechenloel College o? Texee, whloh, 

while referred to in the Constitution 88 e branch of the 

University of Texes, possesses oheraoteristloa end powera 

peculiar to a separate and independent entity, end in our 

opinion this portion cr the rtatute would for this resson be 

fnapplloablo to the bonds of A t Al College mentioned in your 

rsqueet. Further, the law authorizing the iaeuanoe of l uoh 

a bond expressly provides thet it shall not be en obligatlon 

o? the A lk 16 College, 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 oolleotlon of taxes ?or the 

payment thereof, but only to the reven~ea ecorulng ?rom the 

operation o? the projsot ?or whloh such bonds were lasued. 

You 4r4, thererore, advised that the railure or 

the law to euthorlas the inreatrmnt o? the State Pernmneat 

Sohool Fund in bonas or the olaas aesoribea 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