**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 flayof **#oveuber** Iby(a) &qoelting a **depository** aignea laysome 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 

### thefreaaurer

unfi tobe inma& Porn au 

### ruby bir poorribedby theBoardend

## 877

l ttbeat

to'the~apprmalof mmhBoard; tb)by pled@agtiththe beasumr Ey seouritles OS the following klndet Bonds and cer@floetee and -othertidemo08 of indebtbdtm88 of.the United 6tstos, sad all otherbox&s -oh are @laranteed as 

## toboth @nQipal and interest by theUnfted Stster ;

## boode of thl6 

## state lespedby t b0xls ad other obligations

he Uxtivet-olty

of Text&s,

earmute 

### dravnonthoState 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 in**terest of**  **sold ‘** **bonds are**  **&g&ta.ufeo8 by**  theUnited Btat&Govermmnt$ BorneOwnem 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 u&s which they 8sm.u-e~ w&d, r 

### r centgreaterthsathe 8umm*
that Texas &Wiof mrds uay.be ~nccrOpted at 

### ffmevalueatxl

nlthont~mrr@.n

iorthe t6amttt ttS Btstefwm%sallotteU, Ffo+ide~I, atteh

### StateRelief Bond8 hare all rniEIkpsd 00upoM tittaeaed bonds of 0ounflelB 1oQated In Texaas; roud dLt**tr*ot8** oi aounttett ,in TeJIpsj 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 outaFt3@Utad w Chapter 8 Of Title la of the llerisedCivil Stututeo. BraxottBi+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 Cht3pter868.

Artlele 2628 o? the ctatuteo de-8 tie 

### olasses of eligible beouritieo ior public depositories. 'Ifthe bonds arler oon8iderat3anare tobe condder ed elle;ibl+ %t xttst'ba~bemu8e 

### taey belong ta thd alask llsrmsdby .mrrmigipal corprstlons,~ for, clearly, they **do** not fall within auy other olass~ezamertated by the statute.BozlorebleJooee Jame - paF;o 3

The torm*mn%uipal eorporafitm~ Is osmlln fro 

### differentsenses in otettttee md in detcbions, adl, lllmvias, in comlon lance of tiaeneiel circles. Pirst, it is ueod ea eynollymuaaith publzc oorporlrtionsau aontra-dlstinguiehodfram 

### prltntocorr 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&i** tutlontt

**deuigned** for the looal gmerntaantof towns a& cities; 

### or, mre eceumtel.y 

## towns

and 

## aitieodth their 

## Sult&iteuts

are for pwpo600 of iiubordinete local a&idnkstrotian ismeet@ 01th a oorpor~te &ereeter.~ (vol. 1rsw .ls). 

### A&n, the sspc authorltydaclarost

cuillltp,

00 vcll OS

## oity, ICIa 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 of this treatise. has
s- 

### roferenoe to lncorooretedwi 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 construiugArticle 2629, se held that the 

### r&tnding bot8l.s

of a w seter-lmprwosmt district

### werenot sllglblo es muicipal bonds. That opinion 8houldbe folloood not only upon Lpecedent but upon sound

### reasonlug as roll.
It hae boen suggested that thomordlug 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 lenguegersfsrrsd to being es 2ollosat

*she BraSOB River ConaerYatlou axl Reclamation dietriet ie 

### oreatedan 

### 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~ $31Seotion 2 is usod In the generalallcoszprehonsiresanse 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 -- thatof

## 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 theHonorable Jesse Jams - pace 5

olasses of securities &a eligible named l r osil diStriot6,' s&ndepsxIont axl oomxm school dietristan, ata l rmniclpal corpr;Ltlons,* thus **iadicsted** lndiaplteblg that smnmicipl corporations9 as a alas6 was used in the epacoifiossnse 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** thebroadest' 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 ls ee
OS-UR



### APPROVEDAPR 25,1940 /izkL&u*w ATTORNEY

GENERAL

OFTEXAS