435 

THEA~~OHNEYGENEEZAL 

OIFTEXAS 

Hon. D. D. Williams 

County Attorney 

Throckmorton County 

Throckmorton, Texas 

Opinion No. V-684 

Re: Authority of Commisslonerst Court to 

transfer Road Bond 

interest and sinking 

fund and rental received for use of 

trucks to Road and 

Bridge Fund. 

Dear Sir: 

We refer tc your letter in which you submit 

the following: 

"1. Throckmorton County voted certain 

road bonds and sold certain road bonds and 

part of this money was used for the purchase 

of right df way, building roads, etc., and 

there remains from the sale of such road 

bonds approximately $10.000 in the road bond 

fund account. The State has assumed the payment of the road bonds in Throckmorton County and there will be no more highways built 

by the State Highway Department so far as we 

know and there is no need for this partlcular money for State Highway purposes at this 

time, nor do we contemplate any need for such 

money In the future. 

"We ado have a great need for this money 

on lateral county roads and we would appreciate your advice as to whether or not this 

money can be used on the County roads. And 

in this connection, I understand that the 

Attorney GeneSal Department furnished an 

opinion to the Commissioners' Court of Haskell County or the County Attorney of Haskell County; involving a situation exactly 

the same as ours and I would appreciate a 

copy of this opinion. 
436 Hon. D. D. Williams, page 2 (V-684) 

"2. Throckmorton County has set up an 

Interest and sinking fund to pay the principal and interestwhen due on two issues of 

road bonds. The State has assumed the payment of these bonds and the interest when the 

same becomes due and we have a surulus of aoproximately $9.000.00 In the road bond i&e;- 

est and sinking fund for which there is no 

need at the present time, nor will there be 

a need in the future as the State has assumed the payment of these bonds and the lnterest on same. 

"We would appreciate an opinion from you 

in view of the above circumstances as to whether or not this money in the road bond interest 

and sinking fund can be,,used on lateral roads 

in Tbrockmorton County. (Emphasis added) 

The money referred to in your letter was derived from two sources, viz: (1) Unused proceeds of countyroad bonds voted for the purpose of construction and 

maintenance of macadamized, graveled, and paved roads 

and turnpikes, or in aid thereof, in Throckmorton County, $lO,OOO.OO; (2) Unused road bond interest and, sinking fund raised by taxation to pay said bonds and the 

interestthereon, $9,000.00., 

In final analysis you ask if said sums of 

money may be used to build county roads in Throckmorton 

county. Your questions are answered in the order as 

above. 

(1) The sum of $lO,OOO.OO is the unused portion of the proceeds of a bond issue voted and sold by 

Throckmorton County for the purpose of constructing, 

maintaining and oueratlna macadamized. graveled- or uaved roads and turnpikes. or in aid thereof, in Throokmorton County. All of the election proceedings specifically earmark the proceeds of the said bonds as follows: 

"On roads from the North base line of 

said Tbrockmorton County through Throckmorton 

to the South Base line of said Throckmorton 

County, and from the East base line of said 

Throckmorton County through Albert and lntersectlng the said proposed road from the North 

'base line of said Throckmorton County to the 

South base line of said Throckmorton County 
Hon. D. D. Williams, page 3 (V-684) 437 

and from the North base line of Stephens 

County through Woodson and intersecting 

the said proposed road from the North base 

line to the South base line of said Throckmorton County." 

NothIng contained in any of such election proceedings enlarges the purpose of the bond issue as above 

recited to authorize the use of any of the .proceeds of 

said bonds for any other purpose. 

In Opinion No. O-7213 by a former admlnistration, a copy of which Is enclosed, it was held that an 

unused portion of a bond issue made under authority of 

Sectioff 52 of Article III of the Constitution, not 'earmarked for specified roads, may be used to purchase 

right-of-way for farm-to-market roads. It is there 

held: 

"It appears from the proceedings that 

no reference was made 'earmarking' the money 

for a particular road or a particular type 

of construction. We are furnished with no 

facts or orders showing that the proceeds 

of said bonds were 'earmarked'. 

"Based on the transcript of proceedings 

that we have before us, It Is our opinion 

that the Comm?ssl.onersl Court of Haskell 

C.ounty may sell the Series D issue of bonds 

and use the funds for the purpose of aiding 

In the construction of and purchasing rightof-;ay for farm-to-market roads in said County. 

funds were 

T$e above o@nlon further states that if the 

earmarked for a particular road or a partlcular tqpe of construction 'a different conclusion would 

result. In your case the records reflect that the bonds 

were voted for particular roads; therefore, in view of 

the foregoing it is our opinion that the unused portion 

of the proceeds of such bond issue may not be used for 

county roads other than those for which the bonds were 

voted. 

If the bond purpose has been completed, then 

the $lO,OOO.OO left over should be used to retire outstanding bonds. If the owner or owners of such bonds 

are unknown to the county, then the money should be plaoed In the sinking fund. 
438 Hon. D. D. Williams, page 4 (V-684) 

,._ ,~. ,,,,,, *,I1 

! (2) The sum of approximately $g,OOO.OO in the 

road"'bo'nd interest and sinking fund was obtained by a tax 

which was levied and collected to pay interest and create 

a sinking fund to pay road bonds voted and sold as authorized by Section 52 of Article III of the Constitution. 

The bonds have not been paid and Throckmorton County is 

primarily liable for their payment, which liability continues until such bonds are paid in full. 

In Opinion No. V-157 of this office it was held 

that money In a sinking fund may be used only to pay the 

principal and Interest on the obligation for which said 

fund was created, until such obligations are fully paid. 

It is there further held that after all such obligations 

are paid, any surplus then remaining in such fund may be 

disposed of in accordance with the provisions of Article 

752a, V. C. S., as amended. We enclose a copy of that 

opinion. 

SUNNARY 

The portion of the proceeds of a bond 

issue voted and sold under the provisions 

of Constitution Art. III, Section 52, and 

earmarked for particular roads, may not be 

used for the construction,of county roads 

other than those for which the bonds were 

voted. Money In the Road Bond Interest and 

Sinking Fund for the payment of road bonds 

may not be used for any purpose other,than 

the payment of such bonds and the interest 

thereon before such bonds are paid in full. 

After such payment such money may be used 

for the purposes specified in Art. 752a, 

v. c. s. 

Yours very truly, 

APPROVED: ATTORNEY GENERAL OF TEXAS 

c2$.-&& 

FIRST ASSISTANT 

ATTORNEY GENERAL 

By m7-wdLib da+ 

W. T. Williams 

Assistant . 

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