. 1



### Maroh 

## 29,1957

HonorableDawsonBryant CountyAttorney Kent County Jayton,Texas OpinionNO. ~~-81 Re:.The issuanceand legal obligatibnof.

time~uarrants by Jayton.Rural High School District
Dear Mr. Bryant: 7:; Arty. 2786(e),

. . . You request the opinionof this office+pon..the questionspresentedin your letter,as follows:,

"At.thebeginning of the current.school ye+- beginningon.September ,l,1956, ok, sho+ry th.ereafter, the Jay$on..Ru&?al..Hig& School"Distrrct

had just'komplete'd ~&~~nbu:'~ gch?oJ,,p&ant

consisting.,of.a.new~.grade ~'-schodl,

high school;auditoriumand gym:, " -:iI+stnm.:'.~Th&

scool districtwas.in needjof.~ '~?kquir$&nt

fdr.the.varlous

schoolrooms,

be& and lu,nchroom

in order that classes~could'~,' ,be,soperly:.conducted during. 

### the pt?esentL. j ‘.~iml~iiO$

year; The“school,had,enougR.,furids.,~ ' @i+vould':ti@celire .enou&availab)e findb .: <. .~~~asP"'dourdea~:during,~the 'pew.tb.'h*

_'aJa,, teacher~~~~~&~+lL;i;, ;~'iaainte~nceiar;a~~~o~~~~.,. -: , _ tiop,,q,Lth-+,sma~l surplus.leftovqr.; ,hov- '. everi“the::,school,districtid~d~not.~sue.enough fund~':'&~'of-:curyent available,

fundb.to..pu$+ chase.~~~fie-'xiece'ssary equipmentAndy

to eqtiip;;:~ scho6l.propertyr~~

The:Board'ofTrus$ees'order- .edthe :necessary,equipment durlng.theprehent schoo&yeaT 

### with~the intentionof borrowing ~ki6ney;by

:'ibsuing

'time-warrents

to,pay for s&e, ,Such.tqultient,cost wellover the sum.of:' #25,000.00. Upon receivingthe equipmentin' Septemberand Octoberof 1956, insteadof issuing time-warrantsto obtain thenfunds.necessary for such purposewhich warrantswould have been dravlng interest,the Board of Trustees paid for such equipmentout of availableHonorable Dawson Bryant, page 2 

### (~~-81)

funds with the intention of **ls~ulng** the time-warrants later in the school year when the need arose for the money. **NOW** the school is ln need of funds to replace that which was speriton the equipment and they now desire to issue interest-bearing time warrants in the amount of $25,000.00.
"1

. Can the Jayton Rural High School DEBtrict issue interest-bearing time warrants under Article 

### 2786e Texas Revised Civil Statutes under the above circumstances? "2. Would such time warrants be a legal obligation of such School District?"

"interest-bear1 time warrant" is defined in Se%o?imof Article 

### ~2786(3, V.C.S., as being a "p-omlssorynote, interest-bearing time warrant, obllgatlon or other evidence of indebtedness issued under this Act," and the statute authorizes payment of the warrants with tax moneys to be levied and collected in future years.

It 1s clear that neither bonds nor warrants may be issued for any purpose not authorized by 6tatutory or constitftutbnal provlslons, the leading case on the subject being Lasater +. Lopez, 110 Tex. 

### 179, 217 S.W. 

### 373.

In effect, it 1s proposed to replenish the "current available funds" of the dl&rlCt by the Issuance of time 

### warrants. Such a in Article 2786 rpose **1s** clearly not one of those enumerated

p"~ e), V.C.S., which are as follows: 11 to repair and renovate school bulldl&;'purchase school buildings and school equlpment; to equip school properties with necessary heating, water, sanitary, lunchroom and electric facilities;

. . ."
Issuance of time warrants for the purpose stated is not authorized by Article 2786(e), V.C.S., and 

### If they were Issued they would be void.Honorable Dawson Bryant, page 3 (~~-81)

Under Article 2786(e~), V.C.S., time warrants may not be legally issued by a school district for the purpose 

### of replenishing the "current available funds" of the district, and, if ISsued, would not be legal obligations of the district.

Very truly yours,

WILL WILSON Attorney Cjeneral

Byk"+ Howard W. May8 Assistant HUM-s

APPROVED:
OPINION CiMMITTEE By: H. Grady Chandler, Chairman