### "I'~XEATTOWNEY GENERAL

PRICE DANIEL ATTORNEY OENERAL

**Bon. A.**  **0.** Huellrs Oounty Attorney $"6: c;w& 9 

### OFTEXAS



### Augart 18,1950. oQanion Ho. v-loag. Rer The author%tJ of 

### the coplrpisetonerr ’ oourt to cash Ooverrrasnt bond **whoa1** fund Inoestaents befor. sa

### turltyan6 **Ire&avert** &ggpg; &$g
**a** lower Interest rate.-- ..

Hoa. 

### A. 0. llu8ller, PIge 2 (v-lm9)

settlera. Said 

### lands,anathe p00esas theroof, vhea 80la, shall. b8 held by eaid 

### oouatiesalonr 88 a trwt for tha braat of public sahoolr th8reia; sala proowdl to be lntwtrd la **bonds** of **thb Uaitad**  8trt.r; 

### theStatsofZuu8, or oouaticuin 88id 

### State,or lasuchothrs88cur;tiea, andunder suoh restrlotione a8 my **be**

### p88awlb~d 7 b lawj and the oouatles oh11 be rerpoari

### e forall iavrstmeatb; the iatemrt Wwo

### o~~~$uldo~m~e~mnn~ gxoopt **the** 

### pirroipal 0 Artiole 2624, V.O.S., pmvlbers %8ch oounty may8811 or alepose of the land8 gmnted to It for eduoatlon81 porpo808 la such a8nner a8 maybe p8ovlQod by the oomtmlrsioners court of such aowty, and th8 prooordr OSany ruoh sale 8h8U 

### be invortad in babde of the United States UI Sbrtie of Vu

### a8, thebeads 0r the oouldes 0r th8 statr, rDdth8 laQ.p8naent or oomon8ohoolal8- **tplete,** 

### roadpreoinot, dmimge, irrigrtion, 

### n8vi & ationand 

### lrvsodirtrIot lotU Ilkto, and he bond8 of Incorporate& 

### citiraan6 towne, and held by 

### suohoounty alone a8 a **trust** for the benefit of ublla free school8 therein, only the interee e thereon to be used and expended 8rW811y.Y Byvirtue OSthe foregoing constitutional and statutmt provirionr latorort p8id oa lavestments of moneys belonging to ihe per*anent school fund of a oounty 

### ia doposltrd In the 

### availableeohool fund OPthe county rather than the prrm8n8nt 8ohool fund. Furthermom, roneye 

### belongingto the paruarat rahool fund oanaot be upeaaod or used by the 

### aountyo

Under the fads submittrd, 

### theCcmlaeloners~ 

### Cowt wouldroll Unit84 

### Stat08Oovrraaeat bonds belongiag to the permanent school fund of the oountp at a diecount, 

### therebydiminishing the permanent achool fund. 

### It L8 ourspL"I

on that 8wh a proo@durs would br io vlol~- tioa 

### 0rl

ot1on 6 or Artio1, VII of the Con8tittltionor Tax08 * 

### If, ontar other hand, thr gov8mamrat bonds IA quor~lm era sold at not 1888 than par,.ths Coam%881oa8xw~lion. **A.** 0. Mueller, Page **3 (V-1089)** 

Court would have authority under Article 2824 to invest the prooeede in bonds OSIndependent eohool dlstrlcte.

Slnoe Section 6 of Article VII of the Constitutlon of Texas makes the 

### Comlasloners( Oourts trustees of a permanent school fund of a county for the benefit of public 8ohoo18, It was held in 100 Tex. 51, 93 Sew. 419 (1906 Yv. Blackburq, I i I Court could not reduce the lnt 

### x?f~L **ISeVOn**per oellt to **thr80** per curt.

In view of the foregoing, it ie our opinion that lt Is within the dlaoretlon of the Comi,esionersl Oourt to aetsmninb In vhat securlt;ies it ~111 Invest aoaeys be1
“e; ing to the permanent sohool fund of the county. If he facts should show, however, (tonslderlng the interest rate and maturity date of the bonds) that the Commlaeioners I Court abused its discretion In Investing the moneya belong

“& to the permwmnt echo01 fund of the county and did no 

### &llVBSt tlrfs ~Moneg

for the benefit of the permanent school fund of the county and the county available school fund, it 18 our opinion that the CQllPaisslonerst Court ‘8 order would not be valid.

You also ask if the Commissioners t Court would have the authority to sell United States Government bond8 at a discount and purohase the Llano Independent School 

### DietriOtS’bond8 if the Llano Independent School Dietriot would gay the amount of the dlaaount neoessary to obtain the nomy on the government bonds. In answer to this qu8stion, we 0811 your attention to the provirrions of Artiak **2786** whloh would prohibit the Ll.ano Independent 

### 8choelMetriot from

### pagan&thedltaaount, 

### einoeArtlols **2786 pm&ibltr**  the who01 dietrlat f~oi selling its bond8 

### at 1088thaa par.

The Cimmirebone;ret Court aannot eel1 **Uaftod** States Oovsment bonds beloqjkng **to** ma **prmenent** rohool runa of **the** oouat 

### at a diraouat. 

### T*x.benst., Art.VII, 

### Sea. z. It 18within tke d&6@‘etlon of **the Oom** * 8i88i 8’ Oort to deoi40 in what aee lti88 

### au **hstred by**  Arti,sle **28~4, V.C.S.**  it 9”T **7** ma’$v~oaeym bsWn&l~ ta the permanent

e The U~8e~oll*lra’ 00~4 hold8c
.

Hon. A. Q. Mueller, page 4 (V-1089)

moneys belonging to the permanent who01 fund in trust for public schools, and cannot abuse this diBcretion. Delta Coun m 100 Tex. 51, 93 S.W. 419 (1
APPROVED1 J. C. Davie, Jr. County Affairs Division Sverstt Hutchlason Executive Assistant Char108 D. Mathews **FirBt ABslst~at**  JR%mw Yours very truly, PRICEDANIEL Attorney General

a>, ,/-?Z? John Reevee Assistant

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