OFFICE OF THE ATTORNEY GENERAL OFTEXAS 

AUSTIN 

GROVERSELLERS 

*~TaRNLY OENLRAL 

Honorable S. C. Xaailton 

county kuaitor 

pitor county 

OdaaCIa, Tsxaa 

Dear sirs 

1 of tfe Bonds aad inthereon ham been paid. 

11 or thr Pond8 and ln- ' 

t thereon havs not been 

But tha.tot.al obliga- 

(total Bonds and in-. 

8tlu 0uwanaidg 

i8 n8ea8a in tta5 .orri08 aonlitp or the use or oertain publio 

or dseorlbeb. It will bs appreciatea ir you will inrorm me co5oclmin,j my rlshts 

and~auties aa county Auaitor under the r0il0ting 

clfcumtanoe6. 

"This oounty has certain tunds on d8posft 

and 0tber runa8 hve8t8a in ainking rund ror th8 

paywmt or prinaipal and lntersat or psrtlaular 

bond lesuer. 

"In the first inetanoe, the bonds and all 

interest thereon hove bean .mia in ruu, 
:: 

360 

xonorAbl8 I. C. Uaailton, County kudltor - pagO EI 

wln the 8roond instan08, th8 8ua or ttiA suftitanding bonds ~1~8 All lntarast which will beauma 

aus and payable thereon to the date8 0r their m8tur. 

itioa are 1088 thmn the 8um8 evrilabl8, 1.8. OA 

depoalt and invested, in the slnlriq fund. 

*It ia propored to tmn8r8r the 8x08~888 oi 

the available ~lnno8s cm funb8 OA aepo~lt AA~ 

0r proo88dr 0r Inrostm8ota in the two iA8taaou 

aboro cla#oriB8d, ruoh AxoeW118 te Bcm68 l nilable for current uaa or the sbmd and Frid#ge Pus& 

-AS COUtJ AUtIitW, do I ha~~.authOrit~ UAW 

Ii. B. S96, 46th Le(illaturA, a8 oAaAtO& Of~ondor 

any other aot, to approve vamvA$A &ri~g .oiieot. 

to thras tranMer8, dwpitr Beation OS9 RCC? 

*Do08 the Ctmeisrion~rs*~'Co@rS lmra Mthorlty 

to authorize these hsAn8fe$N: 

Froa the inrorntion @iVOA in YOU1 1*tter,.w underEtaAd th. #itllati@A t0 Be AA iDmJUA$ A8 t0 OAO 8iAkiA& iuod 

all or the Bond8 and the int8rrrt thereon hAM BMA I'uLly paid 

aod a oa8B, 8usplor rem&~A in raid 818kb& ilupd) .u to thr 

reoond lnatanoe, w8 undentmd that All.ot thO.bondA a~&. 

lntore8t h8va a b8.n paid ln~ful.l, but'tho ,A%Ak&s~fppd,:. 

o wns certain l eourlties a s isrve8tmratr ‘aad Pa* o*rkin- *. 

on d8p0rit, and.tbat tti0 tow 0r th4 0~8hwsd ~tnvortmnta 

eseeode the cuPmAt r8@irAd to my ofi AU of thm,~ ~ 

bond8 and lntrre8t whloh 8re OutAtAAdin(l.ar ObUgAtLem 

against 8ald slaking run& Ala@, we~aa8uao that in oaoh 

lrutaaoo the kind of BOA~A orl&lAA&2~< fAtiti'vf8rA Read 

BOnd8. Th8 UOZUh8:OM iA t!iiA 8,&3h$OO ~tU?k OP tb bMi8 Of 

the ~8lWUlptiOA thet the bond8 WEQ&*fOS t&e ~Ul'pO88 Or t&O 

oon8truotlon, zaaintMfuio8 and d*8rtttion or *~adaalsed, grave&d 

or pared road8 and tmApik88 or in *id thereor* aA authorized 

by rrtiole PSt(m~), Vernon’8 Aanotatsd Civil BtatUt88. 

Via rsrsr you to Hotam Bill MO. SSO, Oltepter 116;. 

Oenerttl and Bpeoial Ian of T8xa8, Rogul8r BeAaloA, Mtb 

L8gi#latun, ArtlolA 9SRa, Y. Ai C. 0.. whioh prorfQ.Ar 
361 

honoriibls J. C. iismllton, County Auditor - pegs 5 

“&otion 1. section 1 of Chapter 16, Benat0 Bill 

Ho. 287, Aata OS the First Callad Serslsn ot’tho 

Thirty-Ninth Legislature, la nmsndad so as to 

hareaftsr read as follows: 

"'Eiectlon 1. Any oouuty, or any polltloal subdivision of a county, or say rosd dlotriot that has 

been or may haresitar be orsated by.any Gemma or 

Special Law, 1s heraby authorized to lmoe bond8 for 

~the porpors 0r the con8trootloli, maintewn&s and 

operation of maeadaolted, grave10d or,pavo& Soad8 

and tarnpikag , or in aid thsreor, in any amount 

hot to exased mm-fourth of the asseosod~valustion 

or the real propsrt~ oi such county oc pollticml 

subdivision or road dlstrlot, and to Lavy gad aolloot ad valorcua tax@ to pay the intersst,w-srrmh 

bon$s end provld0 a s~lnklng fund for tho.redenptl0n 

thermoi. 3uch bonds .shsll be issued in tjta’marumr 

hsrelnaftsr provided, and as aontsmplatrd and authorlasd by SaOtlon 58, or Art&lb IS, of~ths~'QMt~titutlon 

Of' thls Stati. The tam ~Poli~tloal S\rbdirL*~lon, * a8 

wed la thla Aot, shall bs oonstrurd taa?iAn any emialssioner~o ~raolnot or any Juetios pl'eoM0t.or i 

county, now or hereafter to be orsetad and’ establishad. ?mvidad when the prlnofpll and slL Iatsrast.on said bond8 IM fully pa&I, in the oven* 

thsri is any eurplue rsmalhlng in the 8ink&$ run4 

said rsma~Ai surplus not u08d in thr iull .pa an 

,~ or the pr 1 and lntsfset’,oasald~ bond OB-, r’ and8 

: my b8 us bhs O~lln~~, _i pOL’~w3al e4bditirion eg : 

; 

the oounty,.or my local diotrlot t~t:.$w bam ore 

quay hi%?aattsr br created by ~a@y.:&aojadZ-or rpaolal 

;‘~&iw Sor the gur~6so of the eou&$&&tiue, ~mint.seahor, 

itid operation of, maoadamlr;e&&$e%d or parea:reatb 

and turnpikss or In the aid th+ut:,aq;nay b*:drtqrmined by the Conunis8lone~l,CoUEt~aOr~q~ ooMt7~or the 

0rfi0mO of any ~olltlo81 subdlvlrion of~a~~aopoty 

cr any said road alstriote 

In applying ths provlslona oP.~t@ls A& to the first 

lwt,anom, that is when the bonds and lnrrr~et, thereon harm 

basn rully paid, ws rind thst outhorlty is given to a ooqty‘, 

p,olftloal subdivision of a oountj, nor any .road disttilot~@o 

usi such surplus that remains in the s%nk%Iq --fund far the 

pUl?iiOSe of the con8truction, lMintensnea,,and dpsration of 

mdcadamfzed, grswJed or paved reaps aad turnpikes, or in aid 

thereof as may be detsxmlnsd by thi.Comufas~onsrs* Court of 
362 

EoAoieble J. C. ifamilton, County i.uditor - pag&.'~ 

r::. 

'the County or the OffiOial8 of a ~)olitioal subdirfalon or 

road dletrict, when a&the principal and ax1 o$ the tntere8t 

have been fully paid. - 

St 18 therefore ths$oplnlon of this departme,nt that 

the Comissloaere* Court of Si%or County la authorized to ex:- 

pend suoh surplue funds as remain .ln$he ei~nklng rund 

in the ,Lnstance mentiorred where all of th@ bOda8 and all 

of the intereat have been fully qd, and Sald'rundo * 

,be used for the specific puryPsr of "the oonatrwtlon, maintenance, and operation of macadrmlzed, grrrrrled or gave6 

roada and turnpikes or in aid thsreof aa deter&md by 

aaid ComiSsionere* Court." 

: .(' 

In conneatlon with this Natter, yoti rrfegrod to 

Nticlm 889, Vernon*s Annotated Clvll Statuter, wCiahmud8 

;as fo11ow8t . 

,' ,, 

. wNo oity or qowty trqa8urer Shall honor 

any draft upon the interert end 8lskl43 l%md 

prorldsd ior My of this bond8 of 8UUh 05ty . 

or COUllty, nor pay out nor divert aAg of *8 

~sem, except Sor the purpofwot print3 t48 

loter:~ot on suoh bonds or f.og iedaamlng.t&S . .. 

SMiew Or Loi ~invartmat io. 8Uoh eeour$tEea 

atymy 'be provided by lay.* ." .", _ 

'Tae provision8 of t&i* aitlola &e~~a$itoadl6 on4 to .c:' 

:the m~pendlture of rlnk~ hmbs. ,Under the 3&Oti'8ioJJs of 

l?. 8. S$W, Chaptiw 116, 48th Leegirhture~~(8upra), uh8n 

ail.of %hS pi%Wipal mad all 0,r the intera8U aB'bond8 h&r. 

bern'fu.Xlg papaid iron 8 slnhihg fad, ,tho'sU~~lus fund' 

which;rsbains i.oSeS it8 id8LItltyiS a ?6iiIk&'iYnd? a& 

beOOme8 M *avaiPable fund", .th+ 18,~ fUi¶d in *hioh Oh8 

'. money is SvailablS ror USE for the puryomm dsslgnatadla 

the Act. COASejUeAtly, the prO68iOn8 Si +StiCle~859,'7f. A. c. G., 

(sug~) would not be applicable to said fudl, 

Since the lict.authorizea the use of auoh surplua~ 

tunds (funda rmaini~ after all boAde and ixteraot have been 

paid) for the desiwated purposes we city (1013 no neoeeeltp.-for 

a transfer. ;is Lmretorore Lvilca c ad, instead of said fund retaining its status as a sinking Lund, it bsoomse a fund available 

ior the dm&,nated use, end auoh l'und could ba known as W 

.kvafltible Fund; fneteed cl * ulnklng~ Fund." You wo- 
363 

goaoreb10 Jo C. Ilamiltorr, County Auditor - page 5 

Then have b Bupar&tt: fund limited, in its use Sor wtha pur;iose 

of the oonatructlon,, SdLntqIlanoe , cmd operation of niacedemieed, 

grsreled or paved roa6e and turnpiken or in aid thereof.* 

The &ccOUS!ting for the OXpenditUreS Of the monay might be a 

greatar yrottlac mhen said funds, which play Ls used only for 

the fOrf3&OiS&$ pUr,:OWJS, are OO-miB&3d with it&B that may 

not be a~' reatrlctad as to their use. Since tile hoed end bridge 

Fund my be used for broader purz:ose8 than those denlgneted in 

the Act, we therefore advise thet those funds restrioted es 

to use for the designated purposes, should noi be transierred 

to the Road snd IJrfdge Fuml. 

Wth reference to the seoond inst.&me, that is, 

where all of the bonds and tntsreat thereon have not been 

d' 

full ,-id, yet tha ocmbined assets of the 8lnking fund, 

tnclude cash end investments, exceed the amount. ef- ,T’ 

bonds -nd interest yet to be pdid from seid fund, you are 

advised that the sot apeoifioally provide8 thet all of the 

lntere8t and all of the bonds must be 

rurplus rkioh~maina artier all of 

paidTad the 

the and all of 

the intereat hme been fully gal.1 is erailaDle for use 

for the designated .p;lrposea. 

Therefore, it i8 the opinion of this department 

that eeld funds, in the second lnetanoe, cannot be wad Zor 

any purpo60 exoept to pay the iataruat on tutsknding bonda 

or for redeeming same, Or f;or the hmmtxuent in securitirr 

as krovidsd by law. Until all outhanding bonds anb interest thereon are full pa~from the fund; It retains 

ito identity es a "8 T-5 nx ng fund-, dad the oounty treasurer 

could not honor P draft against aald sfnkin& fund for a traneier 

or for my purpose exoept to puy lnterast on ou~stw.tdlng bonds, 

or for redeeming m.me,~ or ror investment8 in esouritioe as authorized bg Law (Artiole 4580, V. A.. C, 8. supn’). 

Trustlag that the foregoing fully 8nawere your 

laqulr;T, *I) are 

Yours Yerymulf