**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

Honorable T. C. Chadlok county Attorney WoodCQunt

y Quitam, Texas

Dear Sir;



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kahlll.d~8‘roo‘ ofyouropinionrequ*n of an ,wr$, uote prom~your letter a8 folJow8r \ T,\ ;,.

I” ,/ neTxonmi6n

Q6hool Dirtriot lemwd bond8 **0 464**  nowQWXIM

by the Wood Beho Fund; ruoh bondr oontainhat they ml@& be raoallrd at the ver; 8lnw the tlmo of frmanoa Sohool Dlstriot ha8 **been** absorba Indepemlont Sohool Dlstriat, ohool distriot ammhg the paye bonda; the Wneola distrlot defaulted annual int8rsrt to the extent of $tICC.OO; the loinesla dietriot ham oallrd the **bond8 for**  **p4p ment**  of the prlnoipal.

“The **Wood** County Boardof Eduoatlon wed the fund8 in the Available Sohool Pun6for adminirrtratire expenne benefioial to all t&e o~mnonsohool **ditiriot4**

OR FIRS, .*sI*TANTHonorable T. C. Chadiok, page #S

of the county, inoludlng Lone Pine, prior to lQS1), without prorating the independent aohool dfetriote their share, inoluding the Mineola Independent. Slnoe the abeorptlon of the Lone Pine Dietriot the Yineela 4letriotha8reaeire4 lte pro rata share of the Available Sohool Pund. *The intereet on the $4,000.00 band is ourrent for the year 1940.

“The YLineola dietriot mfueee to pay the #~OO.OO in aoorued lnteraet on t&a $4,000 obligation, but offers to eet this intereet olaim of the **Permanent** sohool Pun4off againet tha Nineola district olaim agglnet the AvaIlable Sohool Fund. PROPOSITIONS Numberone wAoorue4unoolleotad interest on bon48 0wne4by thePermanent Sohool Fundof a oounty is the pawparty and a part of the **Pemianent** Sohool Fun4until oolleoted, ati not a part of and the property of the Available &hool Pun4until suah #OlleetlOn. Humber

Two

“The olaia of an independent eohool dletriot for ite pm rata ehare of the Available Sohool Tun4of a oounty arlelng when euoh fun48 were urea for adninietratire expenee oi the o ommon l ahaol dlstrlote of the oountgonnnot **be** eetoff ag%lMt theolaim of the CountyPermawnt Sohool Fund **for** intereet on bonda **the** independent eohool dietriot aeetuwd on the ab6orption of a oommoneohool dietriet that *PO a benefioiary of the **fulde use4**  for **adminietmmtire** erpenre. IWnber Three *County Available Sohool Fun4e cannot be appropriated to pay indebtedneee lnourrsd in yeere pre- ~iouato Itsaolleotion.Honorable 0. C. Chad&ok, page #S

Wl * * Werequest an anewer$e each of the pivpo8ltlo~.= The Constitution and Statutes ennetea thereunderaedare what shall oonetitute the S&101 pun4. Conetitution, $tib9, Sea. g-6; Revfeed Cirll Statutes, 1985, Arts. eSg.3-

- . Tha Oounty Available Sohool J'un4 18 the fund whioh is used te pay the admlnletratire end operating erpenee of the rohoole of the oounty. This fald 18 derit84 from several 80uroe8, one of whioh is the Interest arising from any bonds belenglng to the Penmneat School lbnd. Arts. SSPbaId ebS4, Retlee Civil Statutes; 39Tex. Jurieprudenoe, pages 860-1-e. The laanagementen4 oontml of the available fun4 eeme to be in the oounty eohool truBtee8, aotlng through the oounty euperinteindent. Oge, et al vs. yroboeee, et al., 64 S.W. 6SS.

ThePermanent S&o01 FW4 18a trust fund for eduoatlonal purposes. The aoontise are mere trustees for the Bm4e an4 the publio eohoole are the banefloiarlee~ 84 Tex. JUriepru4enue, 060, and oases olted therein. This departmat he8

## had that the OOIimi88ion8r8' oourt ha8the reepctneibillty or intesting sad eafeguarding this 

## tuna. Attorney General*8 Opinion Number 0-14S4; Art. **9,** Sea. 6, of the State Co~tJtutlon; Qt. MU, Revised Civil Statutes.

Thepurpose of the foregoing 41seueelon is to showthat the Permanent Sohool sund and the Available sohaol Fundare ontlrely separate anddietinat funds, underQanegemnt and control of different gprernlng bodies and sea-m twwdifferent purpoeee. As stated above, the interest l ri8ing from bonds belonging to the Psmianeat Soboo Pund, becomes a part of the Available Fun4. Weunderrrtand thle eontemplates the money aelleoted es beooming a pert an4 not the mere right te oolleat, which is lnahoate, end, until the money is ooll8ote4, aennet **be** l xerelSe4

by any entity except the trustees aotingt for the Permanent Sohool pun4. The Interest does not beoome a part of the Avellable ?un4 until aolleoted an4 properly ploeea in eald fund. Un4er the faote eubmlttea weare not paee2zig~‘uponthe question of whether or not this oleim agtdnet the eohool fun4 Is a &et one, but whether euith&aim is just or not, it oannot be set off against the Permanent S&o01 Fun4.Bonorable T. C. Chadiok, page #4

Therefore, It is the opinion of thie department that m;r;;;et two propositions, as stated by you, are true and

.Wedo not feel that wehere been furnished with euffioleat lnfornvtion to apply your third propoeltlon to the facts submitted. Howeter,wetill Hate, aa a general rule, tha8 eahool fun4e aannot be appropriate4 to aauro4 In yeere prwioue to its oolleat y ingE”$y:. ‘gas on. seek, 58 S.W. 956.

Truetlng that this answers pour question, weare Very truly yours