**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

mnorabie CohnH. Shook Crlmlnal Dlatrict Attorney Bra County m Antonio, Texas Dear **sir:** 0plnion lo. O-6448 80: Lsga11ty 0 to bo ieeu pore or re held by Be tlaaor the **lloI**rir

## ing88rollowo-

**‘ n** **‘ e** **ye ln**  rece~y\~~eoent dote, **read**
opinion relae original request of the ing this requeet, certain personelinto the dlsouesion thereof, end oerted **acouaatlonm** hare **been** directed by the bonding companies toward8 this oliloe, and for this reaeon we deemit advieable to tranemit to you this file with the request that you kindly answer the legal quea**tions** propounded by our County Auditor, **aa** wall 88 an additional **question** which thle orrice wishes to propoundto you.

### or the provIslons or fib. 2368h of the HevIeed Ciril

Statute8 of the date of Texas, and are suoh bond8, webelieve, ti61**ar,e** held to be not refundable In the cmaeor Jarrereon County v. Sellers, 180 5. W. (26) 5t pags 138.

“It would thererore eeen that if the sameare therefore rerun&able, they would be so byvirtue only ot the fact that they tire ownedand eontrolled by the refunding **authority.** *you will not* also rror the letter 

## ortb county **,&iitor to**  thie orfice thnt there 18, clt thu prsrrmt thus, in tlm sinking ibid of the8e meveral bond8, the aggregate 8ua 0r Sixteen **thouaad** ($16,000.00) Dollar*, wbioh is at thirr time available for tha purpoee of retiring a portion of the bond8 nowin Bexar County*8 hands, and eought by thin **oontraot** to berefunded. *The queotionr propounded by the County Auditor **ara** as

## r0liow0:

*‘(1 .) Oan them rour bowl **imues be**  **legally** reiunded, **am t&me**  **bond8 1881~8**  afo

**r 6**  eria bond@ and ~FOnot op ional bonda? See a ookran County **Ca8e** an Parasaph 3 or thie letter)

“(2) Il?these bonds oan be legally refUnded, aan th6y **be** rerunaed by a bond irreuewith amturity ubaequent to the maturity of the bonds being rerunbed? (bee Paragraph 5

## orthis letter)

“(tith above referencea belug to the lettsr of 

## tb countyAuditor)

“In addition thereto, the queetioa propounded **by** thli# @ifloe 18 aafollow8~

“There being In the verioua afnk~idna; **funds** 

## orthe bead iesuaa in quemaioa the sua or gla,ooO.Oo, which ia available tar the **pur** pose **or** retiring bonar nownought to be re-run&e&, is It or uot incumbent uponthe CommIseionero* Court to apply suoh fund8 to the rettra~ent of the available bond8, andrefund only that portion in exoe88 

## orauoh amunt? "Your early anewer to the above queatione will be greatly appreoiated by thie offlOe.*
TheZiret **question** propounded by the County Auditor 18 a8wered in the arrirmatire. Thematter of refunding outstanding bonds 18 one for the Conxni88ioner8* Court to determine. 8eotion 7 of artiole 2st@A rradm,in part, a8 follow8:

"See. 7. The Co:nmi8sionerr* Court of **any** oounty or **the** governing body oi any oity in the State of Tcxa8 mnypws all neoessary order8 and ordinanae8 to provide for funding or rerunding the whole or any part of the legal debt oi euoh oounty or city, by oanoelling evidences thereof and issuing to the holders or oreditorr, notea, bon&eor treasury warrants with 

### orwithout coupoxu, bearing intereet payuble annua&l~ rate not to exoe.4 six 

## percentr or 8eni-annually **at** a S$) per u&mm. The uerofae oi muchauthority ahall ba **rsguhted** a@follow8: "(a) Suoh Commi8eioner8~ Courts and euoh governing bodism shall have the ri tet all time8 to 188~ raiunding bond8 ior the refuna.? ng of any outetandlDg bond8 legally 18eued and outstanding matured intereat on any leglly 18sued outstanding bonds, subject to law8 applicable to the irauanoe of refunding bond8 **and** without the neae88ity or any notice or right to a referenduta vote. "i 1 * *(o) * * * The runding bona8 hereb shall be payable ssriolly not eroeeding **nut c**  ed Iortyhpdf **year8** iron the date thereof, unless oomi88ioner81 **aourte** or governing body affirm&ively adjudge that the flnsnoisl oondition or euoh oounty or oity will not permit in 8uoh installments aawill maketbr, burden of taxation to rupport ewe, approximately uniform throughout tin term of 8816 bond Ieeue. 3uoh bonds 8hall be axeouted and 18- sued in the samemanwr no1 provided bylaw for the

### 220 “. I **mwrsble** JOhhd. &hook, &ge 4

l xeoutioh **and** issuance of bond8 to refund outstanding county or olty bonds. Said bond8 shall **bear** Interest sot eroeedlng six per osnt (6%) psr ahnun, and rhall be approved by the 4ittorney General andregistered by the state Comptroller in the same;Mnner as other oounty or city refunding or runding bmkn

**TAO** CoOhran ColUltycase tild that bond8 ierued under a partioular ohapter were optional whether expressed imthe proceedinga cr not, but did not hold that bond8whioh were not optional could not bs rerunded with the consent Orthe holder8 or suoh bonda. Yince the &xarCounty bond8 tire owned by 8inking **rWd8** of oertain othsr bond irruea under the oontrol 0r the Oo3missioner8* Court of &rar County, ad that **oolirt** ha8 oonsented to the rerunding thsrwi, it i8 tb opinion of this departmnt that **the** four **18suer** of **bonda mq**  be legally rerun&s&. ThI8 department ha8 alwaya approvrd rerunaing of non-optional bond8with ths oonaent 0r the holder8 0r aame.

The opinion in the oaae of Road Distriot Ho. 1, Jerter8on Ooantyv. tieller8, 12O8. V. (2d) lM, does not hold ttlat bond8 **oannot** berefuuaed with the coneent 0r the **bolder8** 

### 0r the outstanding bondr* on**the** oontrary it hold8 that they maybe rerunded with 8uoh oonsent. Wequote the foilowing from thm opinion of the Courtin **that** oaae:

-That article dose anthoriu blWi88iOlur8' COUZtE
8ought to be

### refunded we- then redeemable, or whenthe oould be redeemed with ths eonoent ot the ownerd ' \rtalio8 our*) The **second** question 18 **anmered** in the 

### arrirnratira alao. Theonly limit,ition in the law 18that they Ohall mature not exeeeding forty (40) year8 rrcm their date.

In answer to the quertion propounded **by your**  **offloe, wo**  think it 18a matter within the discretion or the 

### Oommi88loners* **‘ ,**  Cooit, except **that** bond8 maturingwithin the **ourrent year,**  

## ii **any,** should bs paid out or the #16,000 in the sinking fund. Weare of the opinion that the xttorney Oeneral **1s wlthout**  **authorltf to**  require the county to apply this moneyon **iuture** maturitioa. In the Oa8eof city or E;aoof. &UUI, 127 S. W. **(26) 879,**  it was agoad that oertain bond8were due or would be **due** during the **then ourrent**  year andthat

### 223.

theoityhad

## i0ma **and** 

## 00u00tea tare* **8urfiolont** 

## to paymm. Tbrktt0m.y Q#paidwith General ooatenaeathat 

## said bona880mturing should b 

## r0fwia0a. themoney oolieoteafor **that** .purposo ana @hOuldnot The Courtheldthat the **Attorney** 

## G4naral wanoorreot a thatoontrntion. Your8 tory truly ATTolUUY GZNEXALOF TEXAS

By ub ‘C.1. Gibron

Arrcrlstant



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