THICA-ITORNEY GENERAL OF TEXAS
HonorableAlbert J. Hutson,Jr. Oounty Attorney Trinitycounty Groveton,Texas
Dear Sirr Opinion moo.o+-fg6 RO: The ca~~~i8sloners' court cannot legallyinvest the permanentschool fund of a oo?ratyin such bonds ae schoolboards are authorized to issue under Article 2802 R-1, Vernon% AnnotatedCivil statutes.
Your recent request for an opinionof this DepartBlent, upon the questionas is herein stated has been received.
we quote fraa your letter aB follows:
%y the Ccmuiesloiera'Court investthe pemeamit eahool fund of the county, (that is, the moneys receivedfor the sale of public school land given to the county)in such bcuds as sahoolboards are authorizedto lseueunder tit,.2802 R-1, B. c. S.?
.iirt.2824, R. C. S. authorizesthe Cmmisa~oners' Court to investsuch fmds In bonds of the State, of tim County, roaddistricts etc, but all these bonds are bonds votedby the people and creatinga debt Ihat all the propertyof the polltlcalsubdivisionvoting said bond Is back of, while the bonds authorizedby Art. 2802 E-1 are bonds that say be issued by the schoolboard and are expresslynot an lndebtednese createdagainst the vbole districtbut only against the parti- cala- bullding,stadium,etc.
"It is my opinion that such bonds as are authorized by Art. 2&Z E-l are not bonds that Art. 2824 authorizes the pemanent school fund to be investedIn, and that, therefore,a Oaaissioners' Court oamot legallyinvest their pe-ent school funds in such bonds as Art. 2802 R-1 aut&orizes.w
'Em pemsnent school fund ia providedfor in Sectloas 2 aad 6 of Texss. The above mentionedSeati&m of Article VII of the Ccpetitutlorr of the Constitutionread ka follovs: HonorableAlbert J. Hutson, Jr., Page 2 (O-2796)
Seotlou 2. "All fImA.9,lands and other property heretoforeset apart and appropriatedfor thesupportof pub110 eohools;all the altamats motions of land reseneA by the State out of the ~rants hsretoforemaAs or that may hem titer be made to rall.roaAmor other oorpara.tlonr of soy uature whatsoeverione-halfof the pub110 Aaaaln of the State; and all mm ofmoney tibatmy oune to the State fram the sale of any portion of the saum, shall constitute a perpetualpublio school fund."
aaction 4. "All lands heretofc're or hereaftergranted to the soverslaountfeeof thsn State for educational purposes,are of rigbt the propertyof said countiesres- pectivelyto which they yer+ granted,ad fltle %eretc la vested in said countlee,ad no sdveraep0setf.m'I;" linfta- tion ahall ever be wailable ag&fnst %e %tle or"any oomty. Bach countymay sell or diupoee of fL,sland in whole or in pert In manner to be providedby the cmtisfomra' court of the county. Aotualsettlem residingon said Lmds shall be protectedin the prior rights of ymchaefng ':1esame to tie axttnt of the52 settle- ment, not to exceed 160 a,~%, at 3~6~prize fIxed by said court, which price shall not Incluiliie tie mix of existing SmprcvTnents made thereonby such ee%lers. Said la&a, ati the proceeds thereofwhm sold, shall be h?ld by said countiesalone as a +M.uatfor the benefit of pzbl!,sx&.oo.l~tieref?l; eafd prxeede to be %uvestid31 bonds of +a% Baited States, the S+ate of Texas, or countiesor in said S*sta, or in acch o+&er securitiesaud under 6uch restrictionsas may It pr3s;ribedby law; antithe couuty shall be