Untitled Texas Attorney General Opinion ( 1945 )

Honorable Everett Hutchinson
Bond Counsel
State Board of Eduoation
Austin, Texas
Dear Sirr Opinion No. O-6967
Ret 41-ethe 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 Ccrmptrollerof Pub-
lic 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 exoeed-
ing 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 Arti-
cle 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 Com-
missioners' 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 ap-
propriate order entered aitthe 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