..: 324 

OFFICE OF THE Al7ORNEY GENERAL OF TEXAS 

AUSTl N 

QROVER SELLERS 

*+TORNLI QLNLRAL 
. . 

325 

**id1010 780-b Thet where a aajorlty ot 

the rasldant property tarpay4r8, king qualltled 

l lo oto rof s any ooanty, rot- on the progoaltlon, h~~tlag rots4 at an l loctlon ha14 in auoh 

oountl oalled by tha ooadoaionara oourt of such 

OOUnty, in favor Of the laauan~a oi the bond8 of 

suoh oounty for any purpose authorloed in chapter 1, Tltlo l6, R~vla~ Clrll Utatutas of 19911, 

or Choptor 8, Title U, Ratlna4 clrll Gtatuter 

of 1955, the oanvsss or such tots rwaallo~ suoh 

mtjorlty, haring baao raoordod ln the ailnutaa or 

suoh eomalsalonars oourt, and wherr tha ordor of 

8aid OOWlS8iOnOr8 Ciourt oalliag suoh bond alaotlon, and the not&as of auoh b o nl d leotlon, 

provided that such bonds were to be I4auab by 

suoh ooiamiaalonars oourt, payabls aarlall~ or 

othor*laa, not 4~0*04ing the aaxl!aum period of 

tluia atlpulatad ln sueh rlrotfors order and oleotlon notlaos, and whom therrafter aald oo~ssloners oourt of suoh aounty, b7 orders adoptad . 

and raoor4a4 in its ainutas, ooatraotod r0r tha 

solo oi raid bonds at not lora than par and aaorurd latereat, an4 ~uthorlmd th4 lasuana4 or 

add bonds in aooordanoa vlth tho term aa 

prorlslons of mob oontraot OS aalo, pesccrlbl&q, is l uoh order8 the data oi aald bonds, the 

mturltles of a014 bonds, and the rate of lntoraat said bonds are to bow, au4 lovying the 

tar to pay the lntareat on aald bon48 an4 prorldo a sinking fund sufflolant to pay the prlaolgal theroor at maturltt, and #al6 bonds wars approreQ bl tbr Attorary Wner8l 8nd roglater4d by 

tea Comptroller of Pub110 kooounts and wore tbareaftor sold at a ml04 of not 14013 than pclr.an4 

aooruod intersat, saoki ruoh elaotlon and all act8 

0116 procaedlngs had &ad toiran is oonneotlon thcrawith by l uoh ooutity oomlaalonors oourt la roapeot 

of raid bonda, the d&to Of aald bonda, tbs aatmlty 

dataa of sold bonds, tha lntorsot thereon, and the 

lavy of tares in poynent thereor, fira hereby aggr~vad, confiraeci, ratlflrd, legallsad end rulld- 

,,ted; and raid bonds, and tha oou~~na 4Vld4nOlW 

the interrat thorBOA la and for eaoh of the Year0 

l tlpulatad la auoh raoorded orders, ara herabr 

oooatituted the valid and aubalrrtlng obllgatioo8 

of atioh oounty, and sold bond8 an4 ooupons shell 

b payable or radasmbla only OII tha =tUitY 

or rraeaption deteo atlpulated in auoh reoorded 

ordera and in the rvoe of etroh of said bond8 

end ooupons .’ 
. 

“‘artlo& 780-b. That rhero tha oommlarIonsrr 

OOUCt Of @w OOUItl bar hU@d tbr bO&O Of l UOh 

OOUfitj iOr th JBUr~OOO Of iUli41fU3, XWfU5di56, OMtMl1106 and in 1l.U of any bond8 of l uoh Oounty 

1ogaU.y Iaaua4 ior oar jwpoar l athorIza4 in 

Chapter 1 Title 18, 6avlaod Civil Statutoa oi 

1911, or beptar 2, Title 22, #orIs Clvll St&u-~ 

tea 0r l985, auf, ~316 ruP4in~ or rtiundiug bonda 

were duly l ppro~od by tbo titbor nOenoral o y l nQ 

regIetera4 by the Coaagtr liar o? Pub110 hooounts 

In 8ooorQnoo with the lowr l pplIoablo to the 

Iaauanc~ oi rrfundlngi bonds, the or4er or orbarr 

of ouoh oomala~ionsra oourt l pprovln8 the oontraot 

between ouch oounty an4 the holdar or holder8 oi 

OU0h OUt8tCd~& bmda iOr tbr pur&V36. Or flMbill(L 

or rofundlng ouoh outatandin& bon40, proooriblxq 

the d&e of aaI4 funding or rrtundlt@ bondr, the 

2bturity dater 0r ~14 rmdi56 or refuntllng bonda, 

the rate ot intrraat aaid fu.u&,lag or rafundlng 

bon40 were to boa and ~wyin& sixi ta to pep 

lntoraat OIL l ald fun4144 or nrumUn$ bond8 an4 

to produaa a alnklng fund l usflolant to pay tb 

prinolpal therrof et mturlty, herIn& boon rccordad in tha tinutea or raosrda oi woh county 

oomiaaionara oourt, all act8 an4 prooaa4Iu&a had 

an4 done In omnaotlon tharevlth by auoh oouaty 

ooainIaalonora court, an4 the ooarity Judge, oounty 

clerk, oounty trebauror, or any other oounty offloial hsvlng any 4utls8 to parform in reapact to 

th6 i~aueaor 0r aal iding or rrtundi56 bond8 

afa horrby apprOv84, ooaflrnmd, ratified, la~al~tad 

en4 validata4; crad l alb funding or ratPndI.ng bond8, 

~4 tha coupon8 avIdenclng tho interest thereon In 

rod for enoh or the yraia l tlpuleta4 In l uoh recorded order or orbra, es8 baraby oonetltutod 

the velid an4 8ub8leting oblI~tlon8 of such WUnty, 

ln accardanoa rlth the tarma end jwovislono of auot 

rocordad order or ordera, and eel4 inndin& or refunding b.xida end ooupona tiitirato appertaining 

shell La payable or ra4eo.sibls only on the s!ituritg or redeaptlon dvteo atipul~tad in such IYcorda order or orders an4 15 tha fuoa Of aaoh Of 

a;,id runding or rofundlog bond8 and 00uPone.’ 

*t l l . 
f 

@morrible Cbel L. Xonlieter, pago 4 

It ia tha opinion oi tbla dopertaunt that Srotloo 1 

of Hour* 0111 115 la oonatItutIonal. The juprm8 Court of Texas 

in Coohran County V. Mann, 198 S. Yu. (Zd) 589 and Norton v. Tom 

CM) 849 (writ 0r error re?uaod) heJl4 

of Chapter 2, Tit10 22, Ha+Isa~ Civil 

statute8 of 1925, and Chapter 1, Tltl~ 3.8, havlaad Civil Stotutea, 

of lQll, the oounty oommIarioaera @ oourt ha4 the right to redoem 

tha bonda l uthorlzad under aal4 l tatuto at any tlrm after said 

bonds ha4 bran Iaautd SW a ;IerIOf oi flvr years, prorIds no 

option wlaa raaerva6; an4 It aa option was r*aerved, the oounty 

h&d the rl&ht to redoam, tinder any oiroumdtanoea, after a period 

of ten years. 

The Suprosa Court, la l fteot, held that tba outstanding bon48 authorieod by raid atatut~a zero bIu4lw aontraata an4 

t&t the right of redemption was a part of 8814 oontraot. 

The suuprama Court in Dalloa County v. LOokbart, Stott 

‘Treasurer, 96 8. D. (lid) 60,65, be14 that tha Ight of redamptIon 

by refunding was l valuable rlgt an4 not rubjtot to b@ dareate 

by a bond holder. 

Saotion be 0r Art1010 5 of the Conatltutloa 0r Tgxsa, 

reads, in part, 68 follower 

.Tha kt~Ialatwa shall huvo no power to authorlu ay county, city, town or politloal oorporatlon or aubdlvlaIon of the State to lend its oredlt 

or to grant pub110 taonay or a thln& Oi ?al~a la al6 

of, or to any Individual, l asoolatlon or oorporatian 

whatsoever. l ’ l I 

Conalderlng as14 oonstltutlonpl provlalon in oonJux tl m 

with the reterrod to authorities, it IO the opinion Or this de?tirt3ent th3t jeotlon & 0r l rrld kot la unoonatItutlo5ul, imofer da it 

citteapta to change the oontraot between the oountiaa and t!Ie bondhuld~era. The Aot would confer “a thing of value” on the bondholders 

vclthout h rbtiproo01 

Zontrol DIatrlot v. Eaann 

~cz~a); T. A Y. 0 

713, (Coo. app.); halby County T. Provident 

CO . , 35 r‘ed. (Zd) 608 606,(mrIt of oortorari refused) 

Howard T. Henderroa Ckaty., 

See 6180 

?udad); hods8 urllllr~ C , 

Al6 i+. YI. (24) 479, (writ'or error realma, 70 s. K. (24) 8769 ~0.~4 

Llstrict No. 4, Shelby Cott:: v, ,,Urcd. C&S.Pi. (Zd) la;.- 
. . 

Thsrv are other rerlour aonrtltutlonal quortlonr 

rai#ed br the prmirlonr Or Seotlon a oi 8Oid Bou88 Bill 113, 

but W d0 Oot d,m tt IkO0088lbr~ t0 di8OU88 tb& in V!ieU Of th 

&0r. holdbsl(t. 

BY