Ron. Cliffora B. Jones Opinion No. O-1607 

President Re: Building college printTexas Technological College 

Lubbock, Texas 

ing shop. and issuing revenue 

bonds in payment thereof. 

Dear Sir: 

We have your letter wherein you request our opinion 

on the following question: 

“Does the Board of Directors of Texas Technological College have authority to issue evidence of obligations for building a building 

to house’ the college printing shop under a 

pledge of revenues therefrom, same to: be built 

from funds borrowed from sources other than the 

United States Government?U 

The authority of the Board of ~Directors to borrow 

money to build a building to house the college printing shop 

is’ contained in the provisions of Article 2603~ of Vernon’s 

Annotated Civil Statutes, as amended. Section 1 of said Anticle 2603~ 

Session, P 

as amended by Senate Bill 393, Acts of the Regular 

lows: 

orty-sixth Legislature, 1939, reads in part as fol- 

“Section 1. That the Board of Regents of the 

University of Texas and its branches, and the Board 

of Directors of the Agricultural and Mechanical 

College , and Its .:branche s, and the Board of Directors of Texas-Cal Collesei and the Board 

of Regents of the State Teachers Co leges, and the 

Board of Regents of the Texas State College for 

Women and the, Board of Directors of the College 

of Ar c s and Industries are hereby severally authorsized and empowered to construct or acquire. through 

funds or loans to be obtained from the Government 

of the United States, or any agency or agencies 

thereof, created under the National Recovery Act, 

or otherwise created by the Federal Government or 

from any other source private or aublic, without 

cost to the State of Texas and accept title, subject to such conditions and .limitations as may be 
. . ,. 

Hon. Clifford B. Jones, page 2 

prescribed by each of said Boards, dormitories, 

kitchens and dining halls, hospitals, libraries, 

student activity buildings, gymnasia, athletic 

buildings and stadia, e 

as mav be needed for the F 

and the moral welfare and social conduct of ~the 

students of such institutiong when the total 

cost, type of construction, capacity of such 

buildings, as well as the other plans and specifications have been approved by the respective 

Governing Boards; provided, however, that the Legislature shall never make an appropriation out of 

the general fund of this State, either in the regular appropriation bill or in a supplemental or 

emergency appropriation bill, for the purpose of 

equipping or for the purpose of purchasing and 

installing any utility connections in any of the 

buildings erected under and by virtue of the provisions of this Act.” ‘~ 

Section 2 of said Article 2603, as amended by Chapter 

459, Acts of the Second Called Session, Forty-fourth Legislature 

(1934) provides that the Boards for the various colleges are authorized to fix fees and charges for the use of the buildings 

erected. Said section then further provides as foll’ows: 

“The fees and charges thus fixed along with 

all other indome therefrom shall be considered as 

revenue derived from the operation of the buildings thus constructed. n 

Section 3 of said Article 26o3~, as amended by Senate 

BLlL ‘m, Ax-!!& rzf *Jm BfXJLLax .sks.mL, 

(1939) reads in part as follows: 

F~.fk.y-a&JL LvgA!!J&T% 

“Section 3. Subject ,to, the above restrictions, each of said Boards is given complete discretion in fixing the form,~conditionsand details 

of such bonds or notes. ,&~y ‘bonds ~,or notes issued 

hereunder shall not be an indebtedness of the State 

of Texas but shall be payable solely .from the revenues to ge derived from the operation of said~ buildings; provided that such bonds may be ~refinanced by 

the said~Boards whenever such action is, found by the 

Board to be necessary.” 

Section 4 of said Article: 2603~, as amended by Chapter 

204, Acts of the Forty-fourth Legislature (1934) provides in 

part as follows: 
Hon. Clifford B. Jones, page 3 

‘lSection 4. Each of said Boards is authorized 

and empowered to pledge all or a part of such revenues to the payment of such bonds or notes, and to 

enter such agreements regarding the Imposition of 

sufficient charges and the collection, pledge and 

disposition of such revenues as It may deem proper.” 

We believe that the above quoted provisions of Article 

2603~ authorizes the Board of Directors of Texas Technological 

College to issue evidence of obligations for building a building 

to house the college printing shop under a pledge of revenues 

derived from the operation of said building. Said bonds must be 

paid solely from the revenues derived from the operation of the 

building end no payment can be made from funds appropriated to 

the College by the Legislature. Section 1 of said statute authorizes the construction of buildings which "may be needed for 

the good of the institution.11 However, we point out here that 

the Board of Directors of said institution must in the exercise 

of good faith and discretion determine whether or not said building is one that is needed for the good of the institution. Section 1 of said statute also provides that such a loan may be obtained from any source, either private or public. Under Section 

2 of said article, as well as other portions of said statutes 

above quoted, authority is given to execute notes bearing interest as high as six per cent, payable over a period not exceeding forty years. We might add that this department has, in 

Opinion Number O-1694, addressed to Honorable Tom C. King, State 

Auditor, Austin, Texas, held the above quoted statutory provisions constitutional. Therefore, it is the opinion of this department that the Board of Directors of Texas Technological College has authority to issue evidence of obligations for building 

a building to house the college printing shop under a pledge of 

revenues derived from the operation of said building same to 

be built from funds borrowed from sources other than {he United 

States Government. 

Trusting that this satisfactorily answers your question, we remain 

APPROVED JAN 16, 1940 

/s/ W. F. Moore 

FIRST ASSISTANT 

ATTORNEY GENERAL 

APPROVED: OPINION COMMITTEE 

:%-s:wb 

BWB, CHAIRMAN 

Very truly yours 

ATTORNEY GENERAZ OF TEXAS 

By /s/ Claud 0. Boothman 

Claud 0. Boothman, Assistant