Untitled Texas Attorney General Opinion ( 1940 )

HEA~~ORNEY GENERAL OFTEXAS Honorable Foster Davis County Attorney Foard County Crowell, Texas Dear Sir: Opinion Number Q-2755 Re: May a county invest its permanent school fund in time warrants? This acknowiedges receipt of you* opinion request of recent date, and we quote from your letter as follows: “I would like to have an opinion on the fol- lowing matter: “Foara County’s Permanent School Fund now has on ‘handapproximately $4,000000 to invest and the Commissioners’ Court of Foard County would like to invest the same in time warrants. They would appreciate an opinion advising whether or”not a county can Invest their permanent school fund in time warrants.” The Peimanent School ‘Fund is a trust fund for educa- D The counties ar’emere .t’msteesfor the funds t:Fonalpur:‘poses and the’public schoo’lsape the beneficiarfes. The Commissioners 1 Court has the responsibility of investing and safeguarding this fund. ~37Texas JurispMidence, ,pages 860-861, and cases crted -therein. The Permanent School Fund must be invested as direct- ed by the Constitution and the Statutes of Texas, 7, Section 6, of the Constitution of Texas, ArJ”;icle provides9 in part -‘- ‘I** * * be fnvasted in bonds of the United States, the State of Texas, or counties in said State, OP in such o,thersecurities, ana under such raestrictlonsas may be prescribed by ‘law;and the coti,nties shall be responsible for all inveatmentsO” (Underscorfng ours) Ar;tfc:e28~4~ of ,theRevised Civfl Statu’tes,provrdes for the investment of said fun.das follows: Honorable Foster Davis, page #2 O-2755 ' * * * shall be invested in bonds of the United States, the State of Texas, the bonds of the counties of the State, and the Independent or common school districts, road precinct, drainage, irrigation, navigation and levee.districts In this State, and the bonds of incorporated cltles and towns, and held by such county alone as a trust for the benefit of the schools therein * * *rr. (Under- scoring ours) We note that the above quoted section of the Constitu- tion and Statutes of this State specifically name the type of bonds in which the Commissioners ' Court may invest the County %?%?nent School Fund, and time warrants are not included. Therefore, it is the opinion of this department'.thbt a c'ountycannot invest its Permanent School Fund in time warrants. Said fund mst be invested in the securities specifically named' in Article 7, Section 6, of the Constitution of Texas, and ARticle 2824, Revised Civil Statutes of Texas. Trusting that this answers your question, we are Yours very truly ATTORNEY GENERAL OF TFXAS By s/ Claud 0. Boothman Assistant COB-S-WC APPROVED OCT 17, 1940 s/Gerald'C. MAnn ATTORNEY GENERAL OF TEXAS Approved ,OpinionCommittee By s/%WR Chairman