Editor's notes.

- In light of the similarity of the statutory provisions, decisions under former Ga. L. 1919, pp. 288, 347 (former Code 1910, § 1551(157)), which were subsequently repealed but were succeeded by provisions in this Code section, are included in the annotations for this Code section.

Board must expend funds only for purpose for which bonds voted.

- Plain provisions of this section under which the board of education has authority to take possession of trust funds require the board to expend the funds only for the purpose for which the bonds were voted. Board of Educ. v. Gray, 203 Ga. 583, 47 S.E.2d 508 (1948).

When trustees' decisions appealed, county board may select site and order erection of buildings thereon.

- When properly construed, the power granted by this section gives the county board of education lawful authority to select the site and order the erection of buildings thereon when there is an appeal from the selection of the local board of trustees, and the county board is not confined to the approval or disapproval of the site selected by the local board, but may reject that site and select an entirely different site. McCulley v. McFarland, 155 Ga. 700, 118 S.E. 52 (1923) (decided under former Code 1910, § 1551(156)).

Tax rate.

- Last sentence of this section allowed local authorities to impose tax at a rate higher than that authorized by the constitution for general school taxation. Seaboard Air-Line Ry. v. Wright, 165 Ga. 367, 140 S.E. 863 (1927) (decided under former Code 1910, § 1551(157)).

Trustees (now county board) authorized to sue treasurer.

- Trustees of a consolidated school district (now county board of education) are clothed with the authority to institute a suit against the trustees' former treasurer on promissory notes given by the treasurer to cover a shortage in funds raised by the sale of bonds issued and sold for legal purposes. Craft v. Seawright, 56 Ga. App. 656, 193 S.E. 485 (1937).

Cited in Williams v. Ragsdale, 205 Ga. 274, 53 S.E.2d 339 (1949).

Bonds may be validated after 1945 Constitution.

- If a local school district voted bonds prior to the adoption of the 1945 Constitution, the bonds may be validated thereafter and a bond tax levied. 1945-47 Op. Att'y Gen. p. 160.

Local board must levy only upon property that was subject to taxation in former district to pay the bonded indebtedness of the district and not upon the county as a whole. 1954-56 Op. Att'y Gen. p. 217.

It is the general rule that when one school system having a bonded indebtedness is merged with another school system, taxes levied for the purpose of paying off the bonded indebtedness may be levied only on property located within the territorial limits of the school system issuing the bonds as such territorial limits existed at the time the bonds were originally voted and issued. 1965-66 Op. Att'y Gen. No. 66-11.

Upon bonds' retirement, surplus in retirement account transferred to general fund account.

- Upon retirement of school bonds, the surplus remaining in the debt retirement account becomes a part of the general school fund and is properly transferred to the general fund account. 1965-66 Op. Att'y Gen. No. 65-116.

Fund legally usable for other legitimate purposes.

- Funds raised by taxation to pay the principal and interest on bonds should be set aside by the officials of the political division and kept separate from other funds to be used for the sole purpose of paying the indebtedness and none other until the debts against the bonds have been fully liquidated, but neither the constitution nor this section contemplates that after the payment of the debts against the specific fund that then the fund could not be legally used for other legitimate purposes for which the authorities could levy a tax. 1945-47 Op. Att'y Gen. p. 163.

Use of insurance funds.

- County board of education may not use funds collected by a local school district from insurance on a destroyed school building to carry out a contract with an independent system for the transportation and education of children of the former school district but may use maintenance tax funds for that purpose. 1945-47 Op. Att'y Gen. p. 186.

C.J.S.

- 78A C.J.S., Schools and School Districts, §§ 557 et seq., 756 et seq., 787.

Subpart 2 Refunding Bonds

20-2-450. Subpart to govern refunding, retiring, or refinancing outstanding district bonds.

Where any school district or consolidated school district or any independent school district, in cases provided in this subpart, has outstanding schoolhouse bonds or shall hereafter issue, in accordance with the laws of this state, any such bonds, and it becomes necessary or advisable to refund, retire, or refinance such bonds, the refunding, retirement, or refinancing shall be done in accordance with the procedure and in the manner provided in this subpart.

(Ga. L. 1937, p. 869, § 1.)

ALR.

- Constitutionality of statutes authorizing or requiring the payment of, or assumption of legal liability for, tax anticipation warrants, 99 A.L.R. 1039.