Eonorable Julian E. Weisler

County Attorney Washington County Brenham, Texas
Dear Sir: Opinion Number O-1292
Re: Disposition of levee improvement bondssafter somehave been paid and cancelled.
We have your letter requesting our opinion as to the disposition ofbonds ofWashington County Improvement District Number Onewhich have been paid and cancelled by the County TreasurersofWaahington County.

The facts underlying your question are that in January oft3.911,Washington County Improvement District Number Cne issued $57,000 inbonds, maturing from 1914 to 1951, inclusive, for thepurpose of construating levees in the southeastern portion of the county, and that the County **Tr8asUr8r** having paid all of suoh bonds nom declines to deliver same to **the** governing board of the District in compliande with their replest to surrender same for destructlon.Washington County Improvement District Number One was established pursuant to Chapter 2, Title 83, of the Ravised **CiVtl Statutes,**  1911,Articles 5530 to 5584, Artiole 5555 thereof states, inpart:

"And said Commissioners1Court shall provide for a.sinking fund for the payment ofbonds issued by such district, andwhich shallbe set forth in awell bound book; and said book shall at all times be open to the inspection of allparties interestsd in said district, etiher as taxpayers orbondholders: and upon thepayment of any bonds an entry thereof shall bemade in said book. The county clerk Shall receive or

f recording all bonds and other instruments of the Improvement District the same fees as provided for other like records."Honorable Julian B. Weisler, page #2, O-1292

Article 5564 provides that3
"It shallbe the duty of the County Treasurer to open an account with the Improvement District and tokeep an accurate aacount of all moneys paid out byhim. He shall pay outno money 8xceptupon aVOuoh8r signed by twoof the Improvement Commissioners and countersigned by the County Judge; andas often as required by said Improvement Commissioners orthe Commissioners* Court, he shall render a correct acaount to them on all iiEittepZi%Xiiiiig~ ?%iZiiXal-oon- -- dition of such distr1ct.w -- -

-- In the opinion of this department the County Treasurer acts as the 8x officio treasurer of Said district and, as such; wasrequired to reaeiv'eallmoneys paid to the district and to disburse suchmoneys uponproper order signed by two commissioners of the district and countersigned by the County Judge. The Other requirement being thathe should keep an accurate reoord ofall moneys received for thedistrict and allmoneys paid out for the district. It follows that the law aontemplated the records, provided to be kept by him.and which he is directed topreserve, would be sufficient to relieve him of any further responsibility as to receiptsand disbursements of funds for such di.strict. Aacordingly, when bonds have been pald and SUbS8qU8ntly ooncalled or perforated, we think thebonds should be delivered to the govern1"ffboard of the Improvement District to be disposed of in Suo manner as is deemed best.

We findno law requiring the d8StrUotion of "paid and cancelled bads." **HOW8V8r,** as aprecaution, it seems advisable to destroy.suoh bonds,and that if records have been acaurately kept plainly showing that all outstanding bondshad finally been paid and oancelled, such records would be sufficient toprove the final discharge of all such obligations.

It occurs to us that under Artiole 6555 itwas intended that the County Clerk should be the custodian of thebonds and that the County Treasurer was required only to receive andpay moneys of the distriot pursuant to orders by the proper officials, but in either event we are of the opinion that the bonds should be delivered to theHonorable Julian E.Weisler, page #3, O-1292

governing board ofthe distriot for destruction, taking their receipt therefOr*

Very truly yours ATTORNEY GENERAL OFTEXAS s/ Clarence E. Crowe

Clarence E. Crow8

Assistant

CEC-s/og

APPROVED NOV. 8, 1939 s/ Gerald C.Mann ATTORNEY GEKERAL OFTEXAS
Approved Opinion Committee ByBWB, Chalrmsn