Texas Attorney General Opinion: O-4746 Page: 2 of 2
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Honorable John R. Shook, page #2
However, we find no provision of law authorizing the Commissioners' Court,
or any other authority, to invest money derived from the sale of bonds.
Such an authority is not to be implied from the power to manage the affairs
of the county. The Supreme Court of Texas, in the case of City of Bonham
v. Taylor, 16 S. W. 555, held that the city had power to raise a fund for
the construction of waterworks under the limitations imposed by law, but
when such a fund was raised it could only be used for the specific
purpose, and become, within the meaning of the law, a special fund, and
that the city had no authority to invest or loan money realized from the
sale of bonds.
We call your attention to the fact that the Legislature has provided for
the investment of surplus money in sinking funds of bond issues in certain
enumerated securities. If there is any surplus in the sinking fund of the
issue in question, this surplus may be invested in compliance with the
provisions of Article 779, as amended, Acts of 1941, Forty-seventh
Legislature, page 899, Chapter 552, Section 1, or Articles 836, 837 and
837a, Vernon's Annotated Civil Statutes.
You are, therefore, respectfully advised that in our opinion the proceeds
from the sale of bonds cannot be legally invested in United States War
Bonds or in bonds of the State of Texas or Bexar County.
Very truly yours
ATTORNEY GENERAL OF TEXAS
s/ Claud 0. Boothman
By
Claud 0. Boothman
Assistant
COB-s/ldw
APPROVED AUG. 4, 1942
s/ Gerald C. Mann
ATTORNEY GENERAL OF TEXAS
APPROVED OPINION COMMITTEE
BY B. W. B.
CHAIRMAN0-4746
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Texas. Attorney-General's Office. Texas Attorney General Opinion: O-4746, text, August 4, 1942; (https://texashistory.unt.edu/ark:/67531/metapth261999/m1/2/: accessed April 26, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.