OFFICE OF THE A’ITORNEY GENERAL OF TEXAS 

AUSTIN 

DearNr. Jams4 

you requeot the 

not araaoa iflver 

Befuading Borden 

tory &au, au co 

ier of Btate fun&a. FJU Treat1 reqdre eueh bmk 80 de&gQu8li.Q 98 h w&d r.MpoSlW~ 

before the with flay of #oveuber 

Iby (a) &qoelting a depository 

aignea lay some surety oonlpaq 

authorieed~ to Bo bud.nes~ la Bmau, 

in an asmmt equal to not lee9 than 

&n&lb the amount of &Rate fuxle allotted, em!& bond to be parYobl0 to 

the freaaurer unfi to be in ma& Porn 

au ruby bir poorribed by the Board end 
877 

l ttb ea t to'the~apprmalof mmhBoard; 

tb )by pled@agtiththe beasumr 

Ey seouritles OS the following klndet 

Bonds and cer@floetee and -other tidemo08 of indebtbdtm88 of. the United 

6tstos, sad all other box&s -oh are 

@laranteed as to both @nQipal and interest by the Unfted Stster ; boode of 

thl6 state 

lesped by t 

b0xls ad other obligations 

he Uxtivet-olty of Text&s, earmute dravn on tho State Trsam agalast 

the General Ro~snue of the St&et bond6 

issued by the Federal.Farm Ucwtgage Corpor-atitm ~orlded both pri.noip~%l and interest of sold ‘bonds are &g&ta.ufeo8 by 

the United Btat&Govermmnt$ Borne Ownem Loam Corporatioa Bonds, ,protied both 

pslmiprrl and interest~ot mid boqU8 we 

@aranteedbytheUnitod StatesGoverntmnt and 8uoh osburitles 8hdl be acoepted~theBoanLin,aa,~tnotlessthan~ 

five (a) 

d State r u&s which they 8sm.u-e~ w&d, 

r cent greater thsathe 8umm* 

that Texas &Wiof mrds uay.be ~nccrOpted at 

ffme value atxl nlthont~mrr@.n ior the 

t6amttt ttS Btste fwm%s allotteU, Ffo+ide~I, 

atteh State Relief Bond8 hare all rniEIkpsd 

00upoM tittaeaed bonds of 0ounflelB 1oQated 

In Texaas; roud d Lt tr*ot8 oi aounttett ,in 

TeJIps j inaepetatent sad comma *c&o01 dietriCtslosstediIi~sxas) ana'bondeZe8usd 

by tinntcL* oorporatlons b Tow; ~* + l m 

Ccm8ematlon aul'k&sat~o.on bietrlots are pm110 

OOt'QO~8tiOM OuthOrieed outa Ft3@Utad w Chapter 8 Of Title 

la of the llerised Civil Stututeo. Braxott Bi+er Ceneervotion and Real~tion Distriot *as ersated by eat of the Clst 

'beglslature, 8octd called seesion, -special Uivs, page 22, 

Chapter 13. The Aathasbeenssmmaltimec amended, the 

last one be%ng tliat of lQ3!S, 44th Legislature, first called 

SOPSIO~, page 1627r Cht3pter 868. 

Artlele 2628 o? the ctatuteo de-8 tie olasses 

of eligible beouritieo ior public depositories. 'If the 

bonds arler oon8iderat3anare tobe condder ed elle;ibl+ %t 

xttst'ba~bemu8e taey belong ta thd alask l lsrmsd by .mrrmigipal corprstlons,~ for, clearly, they do not fall within auy 

other olass~ezamertated by the statute. 
Bozloreble Jooee Jame - paF;o 3 

The torm*mn%uipal eorporafitm~ Is osmlln 

fro different senses in otettttee md in detcbions, adl, 

lllmvias, in comlon lance of tiaeneiel circles. 

Pirst, it is ueod ea eynollymua aith publzc 

oorporlrtions au aontra-dlstinguiehod fram prltnto corr 

etiom, esl in thet eonee it would lnclnde State 

OXiS, COUttt~ bO?ldB, Oity bOlit8, SChOObdthtdCt bonds, 

saqmYenr3ntdstriot bonds, and pgp other bog2 Issued 

bJooergordioIlServiago 

eoeote pleao, the torn 

rover aud tmro speol.fic twause at3 roferrizg to oitios, 

tovM aud vllleg0s only. 

billon on Uaniclpel Corporations (6th editbn) 

sajrst 

•Uuni.c~pal oorporetians am2 in&itutlontt deuigned for the looal gmerntaant of towns a& cities; or, mre eceumtel.y towns and aitieo dth their Sult&iteuts are for pwpo600 of iiubordinete local a&idnkstrotian ismeet@ 01th 

a oorpor~te &ereeter.~ (vol. 1 rsw .ls) . 

A&n, the sspc authorltydaclarost 

cuillltp, 00 vcll OS oity, ICI a gubllc corporstiOll; bat th0 Bob001 diStriCti Or 

county, jroporly epeuking, is not, while 

the city is, a gunicivo~ corporation. All 

rslnicipal ~corporatfons.ere gxttalio b0dief3, 

oraetod for cirL1 or political purpeee~ 

but all aivil, political, or p&lie cor- 
.I379 

Honor8blo J0s8s Jams - page 4 

contenmletlon s- of this treatise. has 

roferenoe to lncorooreted wi 

touns, and cities, rlth potter of loCC1 adlli338~tl. 88 diOtiMUfShOd 

from other public iorpmatic& auah 

as oouuties cud guesi oorporet~oua.~ 

(6348 P* 452) 

To the sme general effoot are the following 

stcmderd srlterer Fletcher on Corporetious, YO 

sf! 67 to 66; Thompson on Corporotio 

1, 

lWuillian hunicipal Corporation8, ii 

8, vol. 1, 

% 133-13y. 

ifi M-26; 

In Opinion X0. o-U52, applying thoeo priueiples end construiug Article 2629, se held that the r&tnding bot8l.s of a w seter-lmprwosmt district were not 

sllglblo es muicipal bonds. That opinion 8hould be folloood not only upon Lpecedent but upon sound reasonlug as 

roll. 

It hae boen suggested that tho mordlug of the 

statutes creating the Brasos airer Consenatiw and Reolemation District is such en to constitute the district a 

suudcipslity sit&W the euaning of Artiole 2S29, the particular lenguege rsfsrrsd to being es 2ollosat 

*she BraSOB River ConaerYatlou axl 

Reclamation dietriet ie oreated an a 

gwenmrsntel agomy, a pmicipelitp, body 

politlo end corporate, rested tifb all 

the eutbority as an& under the Constitution aad leas of this State.. (B 2 of 

tho original Act). 

We outmot adopt this suggestion. Tho rord 

l sunloipalit~ $31 Seotion 2 is usod In the general allcoszprehonsire sanse of public corporations, as oontrndfBtiUgUb%hea fmtu private Corporation. In this sense 

the word is apt and it is In thin sense the I4egislattme 

Used It3 ObYiOUSl~, the LegislatUre did riot use the TOrd 

Qunicipality~ in its smo speclfio sense -- that of city, 

town or Yillage - for the consorYation and reclaxatlon 

district was not at the time and cannot be, arrl sas nwer 

ihteuded by the Act to be, a olty, tow or rlllage. 

Wreovec, the faat that Article 2620, occordiug 

to the latest smmdment thereof' (1039) In enumBretfug the 
Honorable Jesse Jams - pace 5 

olasses of securities &a eligible named l r o sil diStriot6,' 

s&ndepsxIont axl oomxm school dietristan, a ta l rmniclpal 

corpr;Ltlons,* thus iadicsted lndiaplteblg that smnmicipl 

corporations9 as a alas6 was used in the epacoifio ssnse of 

cities, tow mcl rillagcs, rather than in its uxmt general 68063 -- that of publio COrpOrRtiOM -- for rood dintriots and COEWP school distriots and independent school 

districts are publia corporations, and in the broadest' 

sense nunLeipa1 corporations , so that their enumratlon 

tould hmo bean use1086 if l nunAcipalitieew Included 

thoui. 

If tho Loglslature had intended that consanatlon 

and reclamation district bonds should bs eligible, undor 

Article 262~~ it oould easily have included them in its 

amx&mntOP1939. 

We therefore hold that the refumling bonds of 

Brazes River Conservation and BecloEation districta are 

not sligible as eoouritiss SOr public depoetteries, under 

Article 2620 of the Revised CiHl Stat&es. 

Very tmly yours 

ATTORWEiXGEBEULOFT~ 

&G 

t 

wie 

ABSi6 ee ls 

OS-UR 

APPROVEDAPR 25, 1940 

/izkL&u*w 

ATTORNEY GENERAL OF TEXAS