Texas Attorney General Opinion: WW-678 Page: 4 of 7
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Hon. Bill Allcorn, page #4 (WW-678)
At the time these "Division A" bonds were issued
Section 9 of Article 5421m, V.C.S., provided, in part, as
follows :
"... After eight (8) years from the ef-
fective date of said constitutional amendment,
all moneys received by the Veterans' Land
Board under the terms of this Act, or so much
thereof as may be necessary, shall be set aside
and used to pay principal and interest on bonds
then outstanding as they shall mature . .
The moneys so set aside . .. may be invested
by the Board in bonds of the United States, or
the State of Texas, . . ."
The 55th Legislature, Regular Session, 1957, added
Section 2(A) to this statute, which, in part, provides:
"The duties of the Veterans0 Land Board
shall be . . . to formulate such policies,
rules and regulations as may be necessary,
not in conflict with the provisions of the
law, to insure the proper administration of
the law and to carry out the intent and pur-
poses thereof."
This is a broad grant of discretionary power to the
Board to properly administer the program. For example, when
an opportunity is presented to the Board to purchase its own
bonds at a price less than their face value, because the bonds
have an attached interest coupon which is then considered
"low" due to the fluctuations of the bond market, it would
obviously constitute "proper administration" for the Board to
purchase and cancel those bonds, thereby retiring that portion
of the debt prior to maturity and realizing substantial savings
in interest cost and principal as compared with the amounts
which the Board would otherwise remain obligated to pay.
The Legislature, in using the words "as they shall
mature", was merely declaring that the Board must set aside
such moneys -- "so much thereof as may be necessary" -- in
order that no bond obligation would remain unpaid when due.
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Texas. Attorney-General's Office. Texas Attorney General Opinion: WW-678, text, August 3, 1959; (https://texashistory.unt.edu/ark:/67531/metapth267290/m1/4/: accessed July 13, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.