Dr. J.W. Edgar Opinion NO M-236 

Commissioner of Education 

Texas Education Agency 

Austin, Texas 7871.1 

Re: Whether Article 2786e, 

V.C.S., authorizes an 

independent school district to issue time 

warrants for purchase of 

land only, which is desired for school building 

or classroom construction 

needs projected into the 

Dear Dr. Edgar: future. 

You have requested that the Attorney General render an 

opinion on whether Article 2786e, Vernon's Civil Statutes, 

authorizes an independent school district to issue time 

warrants for purchase of land only (not to exceed $25,OOO), 

which is desired for school building or classroom construction 

to be built at some future time 

Section One of Article 2786e, reads as follows: 

"Section 1. Any school district in the State 

of Texas in need of funds to repair or renovate school 

buildings; purchase school buildings and school equipment; to equip school properties with necessary heating, 

water, sanitation, lunchroom and electric facilities; 

or is need of funds with which to employ an individual 

firm or corporation deemed to have special skill and 

experience to compile taxation data for use by its board 

of equalization; and said school district is financially 

unable out of available funds to make such repairs, 

renovations of school buildings, purchase school buildings, purchase school equipment, to equip school properties with necessary heating, water, sanitation, 

lunchroom or electric facilities or is unable to pay 

such individual or corporation for the performance of 

the professional duties hereinabove mentioned, may, 

subject to the provisions hereof, issue interestbearing time warrants, in amounts sufficient to make 

such purchase and improvements, to pay all or part of 

the compensation of such individual., firm or corporation 

to compile such data, any law to the contrary notwithstanding. Such warrants shall mature in serial installments of not more than five (5) years from their date of 

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Dr. J.W. Edgar, page 2 M- 236 

issue, and to bear interest at a rate not to exceed 

six per centum (6%) per annum. Such warrants 

shall upon maturity be payable out of any available 

funds of such school district in the order of their 

maturity dates. Any such interest-bearing time 

warrants so issued may be issued and sold by such 

district for not less than their face value, and 

the proceeds thereof used to provide funds required 

for the purpose for which they are issued. Such 

warrants shall be entitled to first and prior payment out of any available funds of such district 

as they become due. Included in such purposes is 

the payment of any amounts owed by said school 

districts, which indebtedness was incurred in 

carrying out any of such purposes." 

The above-quoted section is the only portion of Article 

2786e specifying the purpose for which time warrants may be 

issued. While it authorizes the issuance of time warrants to 

purchase "school buildings and school equipment", it neither 

expressly or impliedly authorizes the issuing of such warrants 

for the purpose of purchasing unimproved land upon which 

school buildings or school equipment is to be erected at some 

future date. 

We therefore hold that a school district would not be 

authorized to issue time warrants, pursuant to Article 2786e, 

fbr the purpose of purchasing land only. 

-----mm SUMMARY 

Article 2786e, Vernon's Civil Statutes does not. 

authorize a school district to issue time warrants 

for the purpose of purchasing land only. 

VeAy truly yours, 

Prepared by Roy W. Mouer 

Assistant Attorney General 

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Dr. J.W. Edgar, page 3 M-236 

APPROVED: 

OPINION COMMITTEE 

Hawthorne Phillips, Chairman 

Kerns Taylor, Co-Chairman 

Z.T. Fortescue,lll 

Fielding Early 

John Banks 

Jack Goodman 

A.J. CARUBBI, JR. 

Executive Assistant 

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