~Honorab,Le J. W. E@ar Opinion No. ~~-1083 

~Commisslnn~r .oi %&lcatlm 

Austin, Teaai3 &: Whether an Independent 

school district may place 

proceeds from the sale 

of bonds, not immediately 

needed, on secured 

interest bearing time 

,deposits with a state opt 

national bank of this 

state other than its 

Pear ‘Hr. Zdgagsr: school district depository. 

‘Ilou have requested an opinion from this office to .? 

determine rrhrfher an Independent school district may place 

proceeds ~fs*aa the sale OS bonds, not immediately needed, 

on soured interert bearing time deposits with a state or 

national bank of this state other than its school district 

Ueposltorg. ,I , ‘; 

The &ovisl~ons of Article 2832, Vernon’s Civil Statutes, arc appllcabl,e hsre and are set out in part below: 

‘In any Independent dbtitbrlct of more 

,than one hundred fifty (150) scholastloa, 

uhethsr It be la a city uhl;bhLhas::asrsum&d 

control of the sahoole within Its limits, 

or a rrorporatlon for school purposea only, 

and whether organized under general law OF 

created by special act, the treasurer of the 

school fund shall be that person or oorporation who offers satisfactory bond and the 

bert bid o interest on the ,average daily 

balanaea or time depoaitd for the prlvl- f lege of aatlnq as such treasurer. The 

treasurer when thue selected shall serve 

Sor a term of two years and until his succeseor shall have been duly selected and 

quallfled and he shall be required to give 

bond in an amount equal to the estimated 

amount of the total receipts coming annuallr into his hands, when such bond Is 

a perrcnal bondi provided, that when a 
Honorable J. W. Edgar; page 2 (w-1083) 

bond Is executed by a surety company or 

Is a bond other than a personal bond, suoh 

bond shall be In an amount equal to the 

highest estimated dally b&3ance for the 

current biennium, to be determined by the 

governing body of such school district; 

provided, further that tiuuh governing body 

may, in lieu of the bond herein authorized, 

accept a deposit of approved ee~urltles, 

which seourltles may Include bonds of the 

United States, or of this State, or of any 

collnty, city, town or independent school 

district in the State, or Anticipation Tax 

Warrants and/or Anticipation Tax Notes 

legally issued by the governing body of 

such school dlatrlct, which shall be 

deposited as such governing body may 

direct, in an amount sufficient to adequately protect the funds of such school 

dlstrlcfi In the hands of the selected 

Treasurer.” 

The language used in the above statute Is clear and 

there is no doubt but that deposits could only be made In 

the designated school district depository, under Its 

8 

rovisions. The Legislature, in 1953, passed Artlole 27 6d 

of Vernon’s Civil Statutes which Is set forth in part below: 

“From and aftier the effective date of 

this Act, any school district within the 

state which has or may have on hand any sums 

of money whioh are proceads received from 

the issue and aale of bonds of any such 

school district, bither before or after 

the effeotlve date of this Act, which proceeds are not Immediately needed for the 

purposes for which such bonds were issued 

and sold, may, upon order of the board of 

truetees of auoh school dZatrict, place the 

proceeds of such bonds on interest bearing 

time deposit 

6 

secured in the manner provided 

in Article 2 32, Revised Civil Statutes, 

with a state or national banking corporation within this state, or Invest the proceeds OS such bond8 in bonds of the United 

States of America or in other obligations 

of the United States of America, as may be 

determined by the board of trustees of the 

school district; . . .* 
Honorable J. W. Edgar, page 3 (~~-1.083) 

Article 2786d, Vernon's Civil Statutes, contained a 

clause repealing all laws or parts of laws which were In 

conflict with It to the extent of the conflict only. Under 

this act dealing speclflcally with the investment of the 

proceeds received from the Issue and sale of bonds, there Is 

no doubt that Article 2786d, Vernon's Civil Statutes, did 

repeal that part of Article 2832, Vernon's Civil Statutes, 

which limited such deposits to the designated depository. 

However, in 1959, the Legislature amended Article 

283% Vernon's Civil Statutes, by House Bill 120, Acts 56th 

Leglsl .ature, Regular Session, 1959, chapter 48, page 94, by 

adding three words which have been placed In brackets In that 

portion of Article 2832, Vernon's Civil Statutes, quoted 

previously. The three words are 'or time deposits." 

It should be noted that Article 2832, as amended In 

1959, does not contain a repealing clause and the language 

used Is general, though the speclflc,,additlon is made to 

Include the words "or time deposits. It Is a well accepted 

rule of statutory construction that the enactment of a general 

law does not ordinarily operate as a repeal of a particular 

or special law by lmplloatlon , although both relate to the 

same subject matter. Flowers v. Pecos River Authority, 138 

!I$. .ll, 156 S.W.2d 260 (1941); 39 Tex. Jur. 149, Statutes, 

Inthls particular instance, since Article 2832, 

Ve&on'i Civil Statutes, as amended~ln 1959, does not contain 

a repealing clause and Is general in nature, It Is the opinion 

of this office that an Independent school district may place 

proceeds from the sale of bonds, which are not Immediately 

needed, on secured Interest bearing time deposits with a 

state or national bank of this state obher than Its school 

district depository, 

SUMMARY 

An Independent school district may place 

proceeds from the sale of bonds, not 

immediately needed, on secured Interest 

bearlng time deposits with a state or 

national bank of this state other than its 

school district depository. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

. 
Honorable J. W. Edgar, page 4 (~~-1083) 

JCS:ms:lgh 

APPROVED: 

Assistant 

OPINION COMMITTEE 

w. v. Geppei6, Chairman 

Elmer MoVey 

J. Arthur Sandlin 

Dudley McCalla 

B. H. Tlmmtlns, Jr. 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Morgan Nesbitt