Honorable Everett Hutchinson 

Bond Counsel 

State Board of Eduoation 

Austin, Texas 

Dear Sirr Opinion No. O-6967 

Ret 41-e the Dallas County Road 

Bonds in question callable 

under the provisions of Ch. 

2, Title 22, Revised Civil 

statutes? 

Investigation of the record on file withthe Ccrmptroller of Public Accounts discloses that the bonds mentioned in your request were 

authorized by an order of the tkunty Commissioners' Court of Dallas: 

County, Texas, on the 13th day of Jme, 1940, being a partial issue of 

#760,000 of bonds authorized at an election duly and legally held on 

the 2nd day of &y, 19393 said bonds being dated May 10, 1940, and 

were approved by the Attorney General of Texas and registered by the 

Comptroller of Public Acoounts on July 3, 1940. 

The record also reveals that the Commissioners' Court, at the 

t&e the bonds were issued, made no provisions concerning its right to 

redeem the konds prior to their maturity. 

The bonds were voted under Chapter 2, Title 22, of the Revised 

Civil Statutes of Texas, 1925. Article 720 of the Revised Civil Statutes 

of 1925 forms a part of the above mentioned chapter and reads as follows~ 

"All bonds issued under this chapter shall run not exoeeding forty years, and may be redeemable at the pleasure of the 

county at any time after five years after the issuance of the 

bonds, or after any period not exceeding ten years, which may be 

fixed by the oommissioners court." 

The Supreme Court of Texas held in the case of Cochran County v. 

?.Lann, 172 S.W. (2d) 689, that all bonds issued under Chapter 2, Title 22, 

Revised Civil Statutes, 1925, x subject to the provisions of said Article 720. We quote from the opinion as follows; 

"The above statute, being in effect at the time the bonds 

were issued, was read into and formed a part ofthe oontraut, 

and purchasers of the bonds were charged with notiae thereof 
Honorable Fkerett Hutchinson, Page 2 (O-6967) 

and are presumed to have bought the bonds in reoognition 

thereof. 1 Jones Bonds and Bond Securities (4th Ed.) p. 

590, par. 627. 

“As we construe the above statute, where bonds are 

issued under the ohapter therein referred to, if the Commissioners' Court at the time the bonds wre issued makes 

no provision aonoerning its right to redeem the bonds prior 

to their maturity, they maybe redeemed at the pleasure of 

the county at anytime after five years after the issuance 

thereof. However, the Commissioners1 Court may, bs an appropriate order entered ait the time the bonds are issued, 

postpone the date after whiohthe bonds may be redeemed to 

not exceeding ten years from the date of their issuance. 

The bonds are redeemable in all events,at not exoeeding ten 

-years fromthe date of theii issuance. Dallas County v. 

Lockhart,, State Treasurer, 126 Tex. 50, 96 S.11. (2d) 60. 

"Since no provision was made fixing the date after 

which the bonds here under consideration could be redeemed, 

they were redeemable, penPorae of the statute, at any'time 

after five years after the issuance thereof." 

In view of the foregoing, you are Mvised that the $200,000 

Dallas Coun Road Bonds, dated May 10, 1940, bearing interest at the 

rate of per annwn are now redeemable at the pleasure ofthe 

aounty. 

Yours very truly 

ATTO= GERFXALOF TEXAS 

BY 

s/ Claud 0. BootMan 

Claud.O..Boothman 

Assist~t 

COB:EP%egw 

hPPRovED DEC. 10, 1945 

s/ Carlos.Ashley 

FIPm ASSISTANT 

ATTORNEY GENERIL Approved Opinion Conmittee 

ByBRB Chairman