Alabama Attorney General Opinion 1979-0083

February 5, 1979 qa u TiATTORNEY GENERAL STATE OF ALABAMA • MONTGOMERY, ALABAMA 3613( 9 00 gB CHARLES A. GRADDICK ATTORNEY GENERAL Mr. R. E. Killette Administrative Assistant Jefferson County Board of Education A-400 Courthouse Building Birmingham, Alabama 35203 County Board of Education - Maximum interest rate allowed by law Section 16-13-146, 1975 Code of Alabama Dear Mr. Killette: I have your letter in which you request an opinion of this office concerning the maximum interest rate allowed by law to be paid by county boards of education engaging in short-term borrowing. Specifically you ask whether Sections 16-13-146 and 8-8-7 Code of Alabama 1975 are in conflict and if so which section controls. It is the opinion of this office that Section 16-13-146 controls the maximum interest rate which may be paid by a county board of education engaged in short-term borrowing. That section sets such maximum interest rate at six percent per annum. We base this opinion upon the general principle of statu- tory construction that where two statutes, one general and one specific, appear to cover the same subject matter the specific statute controls. In this instance, the general statute, Section 8-8-7, codified under the usury laws of this state exempts local boards of education from "all laws of the state of Alabama governing usury or prescribing or limiting interest rates. . ." Mr. R. E. Killette Page Two February 5, 1979 The specific statute, Section 16-13-146, limits to six per cent per annum the amount of interest which county boards of education may pay on loans taken out pursuant to the authori- zation prescribed in Section 16-13-145, Code of Alabama, 1975. Both Section 8-8-7 and Section 16-13-146 were reenacted into law with the legislative enactment of the 1975 Code of Alabama. Therefore it is our opinion that Section 16-13-146 controls. While we recognize the problems that may be created with present situation of rising interest rates, it is our opinion that this situation is one which must be solved by the legis- lature. Sincerely, CHARLES A. GRADDICK ATTORNEY GENERAL By- 'ROSA G. HAMLETT ASSISTANT ATTORNEY GENERAL RGH:dpr r