Untitled Texas Attorney General Opinion ( 1940 )

A-mnmY e-E-= Eonorable Chsrley Lockhart State Treas?LPer, Austin, Texas Dear Mr. ,Lockhort: Opition Ilo. O-2870 Re: Uhether or not revenue boncls are e$iglble under the State Deponitory Law as collateral fos State rundn. We beg to acknowledge receipt of your le-tterof Oatober 30, 1940, requesting an opinion of this department, whether or not revenue bonds are eligible under the State Depository I&w as collateral for State funds. Artiole 2529 of tpe Revised Civil ktatutes pre- scribing the character of security required of a State de- - pository insofar as it applies to securities as contradis- tinguished from s bond, is as follows: ** * * by pledgingMth the Treasqrer any securitiesof the following hinds: Bonds and oertificates and other evidenoes of in- debtedness of the United Statss, and all ether bonds which sre guaranteed as to both principal an& Interest by the United States; bonds of this State; bonds and other obligations issued by the University of'Texas; warrants drawn on the State Treasury against the General Revenue of ttm State; bonds issued by the Federal Farm Mortgage Corporetion provided both principal and interest of srS.dho&o- are guarrenteedby the United States Gs:vernent; Rome &nt:rs Loan Corporation Bonds, provided both principal.and interest oi said bonds are $;uarantectdby tl:eUnited S-tetesGovernment and such securities shell be acoepted by the Doard in an amount not less than five (5) per cent greater than the amount or ::tytefunds which they secure; provided, that '?exa:; Relief Zcnds may be acoepted at face vslire :;:I: with;.ztxar- gin for the amount of State funds allotted, provided, such State Relief Donds have all un- m~aturedcoupons attached; bonds of counties located in Texas; rood diStriCtS Of counties in Texas; independent and common schocl dis- tricts 1GCGted in TeXtiS; Slid bonds issued by munici~jalcorporations in Texas; tic * *?* The only class of seourities listed in this eligi- ble group tha-tcould by any nr:rt?? ccnPrruc!tiGn include re~enue bonds is "bonds Issued by municipal corporations In Texas.* Ordinarily 'Qnunicipalcorporations" contemplates cities and towns? although the term has a common and broader significance, ana often includes all character of public oor- porations as oontradistinguished from private corporations. Regardless of this distinotlon, however, we dare of the opinion that the language, "bonds issued by munioipal corpcrations In Texas" oontemplates the direct obligations.of suah munioipal corporation, end not the revenue bonds that may be issued by suoh oorporation payable out of defined earned revenues rather than from public taxes. It will be observed that throughout the list of ell- gibla aeourltles the bonds , ~drtificates or other evldenoes of indebtedness permitted oont@plate the direct obligations of the issuers, and considering the oontext, we give to bonds issued by municipal corporations the same meaning. This is the ordfnary rule of ooustruotion of statutes known as nosoitur 8 soalls -- wor,dsare known by their assooiates. So that , you are respectfully advised that your ques- tion should be answered in the negative. Very truly yours A".TORNRYGWRRAL OF TRXAS By /s/ Ocie Speer Ocie Speer ,Assistant OSrMRrjrb AlTR0v-m JAN. 2, 1941 /s/ Gerald C. Mann ATTORREY GL~tAL OF TEXAS