~Honorab,Le J. W.E@ar Opinion No. ~~-1083 ~Commisslnn~r.oi %&lcatlm Austin, Teaai3 &: Whether anIndependent school district mayplace 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.

‘Ilouhave requested an opinion from this office to .? determine rrhrfher an Independent school district mayplace proceeds ~fs*aa

the sale OSbonds, not immediately needed,
on soured interert bearing time deposits with a state or national bankof this state other than its school district Ueposltorg.,I
, ‘;

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

‘In any Independent dbtitbrlct of more ,thanone hundred fifty (150) scholastloa, uhethsr It be la a city uhl;bhLhas::asrsum&d control of the sahoole within Its limits, or arrorporatlon for school purposea only, andwhether organized under general lawOF created by special act, the treasurer of the school fund shall be that person or oorporation whooffers satisfactory bond andthe bert bid o interest on the ,average daily balanaea or time depoaitd for the prlvl-

f lege of aatlnq as such treasurer. The treasurer whenthue selected shall serve Sor a term of twoyears anduntil his succeseor shall have been duly selected and quallfled andhe shall be required to give bond in anamountequal to the estimated amountof the total receipts coming annuallr into his hands, whensuch bond Is a perrcnal bondi provided, that whenaHonorable J. W.Edgar; page 2 (w-1083)

bond Is executed by a surety companyor Is abond other than apersonal bond, suoh bond shall be In an amountequal 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 tiuuhgoverning body may, in lieu of the bond herein authorized, accept a deposit of approved ee~urltles, which seourltles mayInclude 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 TaxNotes legally issued by the governing body of such school dlatrlct, which shall be deposited as such governing body may direct, in an amountsufficient to adequately protect the funds of such school dlstrlcfi In the hands of the selected Treasurer.”
Thelanguage used in the above statute Is clear and there is nodoubt but that deposits could only be madeIn the designated school district depository, under Its 8rovisions. TheLegislature, in 1953, passed Artlole 27 6d of Vernon’s Civil Statutes which Is set forth in part below:

“Fromandaftier the effective date of

this Act, any school district within the state which has or mayhave onhand any sums of moneywhioh 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 6secured in the mannerprovided in Article 232, Revised Civil Statutes, with a state or national banking corporation within this state, or Invest the proceeds OSsuch bond8 in bonds of the United States of America or in other obligations of the United States of America, as maybe 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 nodoubt 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 amendedArticle 283% Vernon's Civil Statutes, by HouseBill 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. Thethree words are 'or time deposits."

It should be noted that Article 2832, as amendedIn 1959, does not contain a repealing clause andthe language used Is general, though the speclflc,,additlon is madeto Include the words "or time deposits. It Is awell accepted rule of statutory construction that the enactment of a general law does not ordinarily operate as a repeal of aparticular
or special lawby lmplloatlon
, although both relate to the
samesubject matter. Flowers v. Pecos River Authority, 138 !I$. .ll, 156 S.W.2d 260 (1941); 39Tex. Jur. 149, Statutes,

Inthls particular instance, since Article 2832, Ve&on'i Civil Statutes, as amended~ln 1959, does not contain a repealing clause andIs general in nature, It Is the opinion of this office that anIndependent school district mayplace 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

AnIndependent school district mayplace 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 thanits school district depository.
Yours very truly,
WILLWILSON Attorney General of Texas

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

JCS:ms:lgh
APPROVED: Assistant

OPINIONCOMMITTEE
w. v. Geppei6, Chairman
Elmer MoVey J. Arthur Sandlin Dudley McCalla B. H. Tlmmtlns,Jr.
REVIEWED

FORTHEATTORNEY

GENERAL BY: MorganNesbitt