Honorable7. J. Campbell CountyAttorney Garea County Post, Texas
Dear Sir: OpinionNo. O-5509 Rer Dispositionof prooeedsof sale of countyland upon fore- closureof vendor'slien.
This is in responseto your recent requestfor our opinion upon the followingquestions:
"NS.11you kindly advisewhat dispositionshould be made of money procuredfromthe sale under fore- closureof oounty schoolland, under the following oonditionsr
"In 1909 Garaa County sold 516.5 acres of its school land and retaineda vendor'slien note against it in the principalsum of t5165.00. Defaultoccur- red in the paymentof intereston this note until the 8um of t2493.87had accruedat the time of the sale by Sheriffunder order of sale issued out of District Court in foreclosureprooeedings,and the additional sun of $784.85a* attorney'sfees.
"Shouldthis entire sum now be plaoed in the PermanentSchoolFund on the theorythat the purohas- or forfeitedand a resale oacurredl
"Shouldthe smn of $5165.00be placed in the Per- manent Fund and the remaindedin the availablefund?
"Shouldthe sum of $5165.00be placed in the Per- manent fund, the sum of $2493.87in the availablefund and the BIXII of $784.85placed in the oounty'sgeneral fund, recompensingit for attorney'sfees the fomclos- ure suit necessitated?
"Shouldthe sum of $5949.85(whiohis principal and attorney'sfees) be placed in the PermanentFund and the sum of $2493.87in the availablefund." Hon. V. J. Campbell,Page 2 (o-5509)
You are familiarwith the pertinentportionsof Article 7, Section6 of the Texas Constitution,providingthat:
'1.. Each oountymay sell or disposeof its lands in whole or in part, in manner to be provid- ed by the Commissioners' Court of the oounty. . . . Said lands,and the proceedsthereof,when sold, shallbe held by said countiesalone as a trust for the benefitof publio schoolstherein;said proceeds to be investedin bonds of the United States,the State of Texas, or countiesin said State,or insuch other seourities, and under suoh restrictionsas may be presoribsdby law; and the countiesshall be re- sponsiblefor all inVestientSJ the interestthereon, snd other revenue,exoeptthe prinoipalshall be availablefund,"
Suoh salesmay be made for oash or upon oredit,Delta County v. Slackburn,100 Tax. 51, 93 5.W. 420. Dhen acting pursuantto this authoritythe oountymakes an exeoutorycontractof sale retaininga vendor'slien and a defaultoocurs,It will ordinarilyhave an election of remedies. It mav elect to disaffirmthe sale won breach and make a new sale, West 636, or it may 8 S.W. (2d) 385. In the event it pursuesthe latter course it affirms its originalcontraotof sale. Hill v. Preston,119 Tex. 522.
lVethereforeadviseyou that when your countyforeclosedits vendor'slien it affirmedthe originalcontractof sale and the prinoi- pal amount,#4,165,shouldbe creditedto the PermanentSchool Fund, axidthe accruedinterest,)2,493.67,shouldbe placed in t&County AvailableFund. Article 7, Section6, Constitutionof TCWUJ Article 2284,Vernon'sAnnotatedCivil Statutes837 Texas Juriaprudunoe 8623 Dallas Countyv. Club Land and Cattle Camp (SUP. ct.) 66 S.W. 2941 Taber v. Dallas County,101 Tex. 241, 106
We also advisethat for the reasons set forth in OpinionNo. O-985 of this department,a copy ofwhioh $8 enclosedherewith,the sun of $784.85,the amountrecoveredexpendedfor attorneys'fees shouldbe placed in the GeneralFund.
Yours very truly APPROVEDAUG 20, 1943 /s/GERALD C. MANN ATTORNEYGWERAL OFTEXAS ATTOPZ?SY GElPERALOFTEX4S Ry /a/ Jas. D. &sullen
Jas, D. sullen Assistant JDSrEp~egw Enol.