Alabama Constitution Section 257 Principal from sale etc of school property to be preserved disposition of income therefrom
Alabama Constitution – Section 257: Principal from Sale of School Property to Be Preserved; Disposition of Income Therefrom
🔹 Short Heading:
Preservation of School Property Funds and Use of Interest
📘 Plain English Explanation:
This section of the Alabama Constitution says:
If any public school property is sold, the money received from the sale (the “principal”) must be kept safe and preserved — it cannot be spent.
Only the income or interest earned from investing that money can be used for education purposes.
🏫 Why This Rule Exists:
Protect Long-Term Educational Funding:
The idea is to treat money from sold school property like a trust fund. You don’t spend the original amount, only the interest, so it supports education forever.
Prevent Misuse of Funds:
Without this rule, school funds from sold property could be quickly used up and leave nothing for future students.
💡 Example:
A school district sells an old school building for ₹10 lakh.
That ₹10 lakh must be invested — not spent.
If the investment earns ₹70,000 a year in interest, only that ₹70,000 can be used for school needs like supplies or improvements.
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