Show ATTORNEY GENERAL ON ARMORY MATtER MAHER I I I Advises of Loa oa i Before Supreme I Court 1 1 I i WOULD BE DEBT OF STATE j Quest Question Ion Is So Considered In Ils III to Secretary r of State Board l I J t t ore Barnes Barncs has hias jus an opinion to the state lant land board as to whether It can accept a note for fOI from flom the the Ar Armor Armory mor mory board stating that In his opinion there Is grave doubt as to the t of the thc land b to loan lena the fun s sas as requested to the state armory board Time The document in full ul Is as follows I am In receipt of o r favor avo l 01 of the 2nd with enclosure note noto executed e ed to tile the state board of oC land commis commissioners commissioners of the State of Utah b by the tho armor armory board by William Spry governor C S secretary 01 of state stale and H E A adjutant general constituting said corporation In time the amount of oC under date dato of oC Dec 10 1909 together with the tho written request b by said armor armory boara to th time tate state board bord of land commission commissioners er ers that the tho said state board or of lan land turn over oer to the tho state armor armory board tIme the amount of this note You luave hae asked m my opinion a as to whether or 10 the hoard board can legally honor this noto The note Is 15 made and presented un del der time the Provisions of section 4 chapter 75 Laws of Utah 1909 the state ar air armor mor mory board nt act B By this act there Is created a sta o armory board which is constituted a body corporate I it is that such board ma may sue and bo be sued anti contract and be contracted with The ant he board Is authorized to acquire ground upon which an armory shall bo be con and Is further authorized em empowered powered and directed to cuse causo to be constructed and equipped for occupancy C cy upon tho lands so acquired a state armory and arsenal and tH time sal said ar armO mO board Is b by said act authorized and empowered to borrow from tiu state slate board of land commissioners the sum of or such porton portion thereof as ma be required for the erectIon of such armo armory and to execute and al deliver Its promissory note for that I sum so 50 borrowed and tIme tho said bard board ot of land hand commissioners Is b by the 1 provisions of the net act authorized and empowered to accept such note and to loan to said armory board the sum 01 of or or such uch porton portion ns as may be required for such uch purposes AJl NOT ATE ATEI I It Is further provided b by this net act that said bd body corporate shall be loomed deemed a public corporation and Its shall be from exempt al all taxes and assessments I It is further provIded therein that such loan above referred to when made b by the said board ot of land com commissioners commissioners missioners to the state armory board together wIth 11 nIl sum sums of accrued In Interest interest terest shall constitute and remain a first prior len bleat upon the lan lands s and build ings b by said ing act ct authorized to ho bo pur purchased purchased chased and constructed by said armory board I it Wa ivas held In the tho case of oC tto tato vs Candland Utah 10 Pac where the constitutionality of an act passed by the legislature o of 1909 for a loan ot of b by lH board ot of land commissioners the UnIversity of Utah UPOn ulon notes l to o be executed by the regents of oC the sit shy of Utah was that the obligation authorized by such act while In terms made a debt o of tim tho university was ms lam in effect an obligation of the pure and simple and It was held In that thal case that such act wa was In direct conflIct wih with the Provi oI dons of Section 1 of Arti rt le 1 it of the Constitution in that the tue Indebted indebtedness ness s which would be created under r the th provisions of said act would be beIn bein In excess s of the borrowing capacity o of time thc state rho state armory Is a state and It would seem that the tho rule which wa was laId down downIn In tIme the case caso above cited the oblige ton lion which wi will bo be created providing the tho provisions of this act are arc carried out wi will be an obligation of time the state although h It Is not so expressly provid provided ed b I the act M Ait time the university case so In this timis obligation could be mol only bY b appropriation made b hI the In fact ii h the act acl Itself there Is 18 provided for Cor an annual of out ot of the mone moneys of the state stale treasury for 01 the purpose of paying interest on nn any sum hor rowed by br time the state slate arlon armory board for forthe forthe the of armories I It Is my opinion therefore that this loan It if made wi will be a loan to the tho state which wi will be In an Indebtedness of the state stale But further while It would ho he nn an I Indebtedness or of the state it could not not j In my opinion hO bo considered I a bond bondOr Or a properly Issued and authorized obligation 01 of the state such a as would ouid bo hea a proper Investment ot of time the funds hel by time the state board 01 of land band corn com NO APPROPRIATION As above stated theres there is no provi provision slon sion for un an In lila act to meet time tho principal sum borrowed I It would be nece necessary ary therefore to depend upon future legIslation for such appropriatIon The funds which the state board of land commiSsioners have at their dis disposal for Inv lmont are arc funds do e from the sale le n tumid rental 01 of lands granted to the state under the tho of oC time the enabling net act which funds are to be safely Invested and held by the tho state for tor tIme tho purposes for tor whIch the they wore were granted Constitution of Utah Act Act 10 SectIon 6 I It has Ims been provided b by law Jaw JawIn lawIn In what whal manner funds ma be invested b by the state board or of land commissioners Section 2357 2157 Compiled Lais ot of Utah 19 1909 Under der the provisions or thIs section time tho slate bard board 01 of land commIssIoners Is authorIzed to lo invest such In state county cl city or other district bonds or In script or 11 d against time tho funds to tobe tob be b raised by or local 01 assessment under the provisions of the laws lawR 01 of the State or of Utah or notes of oC the state madl made under thu tho or sections 1423 and amI or In first mortgages on Improved farm within law the or otherwise a as provided b blaw by bylaw SHOULD GO T TO COUnT Now O calling attention I t the wor word wording Ing of oC 4 of chapter 7 75 JAW 1909 that Is the state A t 0 o I board board act act It 11 be seen seemu that thal thee Is to bo be found no mo provision made mudo a ato as asto I to what fund or or funds the particular loan there provided for fOl shall be made flOI from by w the state board 01 of land corn com Time The nt act simpi the armory board t borrow Crol from the state board ot or land and th the state stale board or of land t Ic loan to said tU armory eard the of Outside of the tho fund provided CUI for the tho re reservation land nd grant which cannot be conti erell In this maler mattor the time state stute board or of lan have no minds 10 for i exempt fun funds s which are re r cl If d from the sales lt i and rentals of oC lands Assuming then nn an nes fleas would be n In o of tIme the state stale but not sch such as Is pro provided vided for fOl under th hip provisions or o lec lecton see ton tion i it would Seem that thele lInac would 0 be grave ave doubt a as to whet 1 or 10 mao this Is or would bo be a In Investment vestment ot of trust funds and 1 in m my opinion Ul there ro Is 19 grai doubt as a to the tho authority of oC time the board of oC hand commissioners to any of luh suh to time tho state mis provided In tho armOry board ac net The Thc It is one one of grea Ira Im Importance and can camm determined In ha tIme tho courts and In m opinion be before fore forc the I rd amy all money to the ala armory board or 1 takes lakes any stop lop umer the provisions provIsion of this armory bor net time tho matter should be adjudicated e In the courtS nn and you are so 80 dI ed a law lawyer yer er ot of experience does oes not agree with tho gner and says the mat tr tar will 11 b be up t to this the I determination r |