Case Information
*1 THEAITORNEY GENERAL OF TEXAS
Honorable H. A. Hodges
County Auditor, WillMmson County
Ge&+mm, Texas : 0pinion,No. O-7087 Dear Sir: Re: If?municipal bonds held by the
County Iilprovements Fund, are sold, may the premium from such bond8 be lnve8ted in U. S. Government Bonds?
We acknowledge re&pt of yc$ opinion request of recent date, end quote from letter, (18 follows:
'IThia County'8 Permanent School Fund ownm quite a lot of Municipal Bon&a for which an offer of rreieral hundred dollerr premium has be-. made, if the rale lr made the principal and the premium ~111 be inverted lz'b. 5. Government Bon&, by the Inverting of the premirrm In bonda there will be good findnclal gein over the maturity of the bon& rold. . "An the law directa the interert and leare money, except oil anu.. mineral leaae6, be trsnnferred to the State and County Available School Fund for appor:~kkmmnn~ -to the various Conrmon and Independent School Diatricte on a'per capita rcholsrtlc berir it bar occurred to me that premlunu on bonda may be held a8 Interest, if 110 the law would not permit the une of the premium to purchase additional bon&. “Kindly give me an opinion rtating whether or not the Commidlionere' Court would be authorized under the law to Invest the premium of bOnda mold in the purchase of bonda for the use and benefit of the County Permanent School Fund?"
The Attorney General'8 office held in Opinion Number O-823, copy of which is enclosed, that profit derived from purchase, sale, and reinvestment of the cash in the Permanent School Fund of a county should become-a part of the Available Fund (citing Art. 7, Section 6, Constitution of Texas). In line with that opinion, we believe that the premium received from the sale of bonds held by the Permanent School Fund becomes a part of the Available Fund.
Hon. H. A. Hodgee - Pege 2 (O-7087)
You are advieed, therefore, that the Commieeionere' Court would not'be authorized under the law to Invest the premium from bonde aold in the purcheee of bonds for the use and bei$efit of the County Permanent School Fund.
Very truly youre, ATTORNEX -oFTExAs a/ Claud 0. Boothmen By
Claud 0. Boothman Assistant COB: v/ldw
Enclosure 1
APPROVED FEB. 23, 1946
CARLas c . ~'TCSHIEY
FIRST ASSISTANT
A!lTORNEYGENEBAL
APPROVED OPINION COMMITTEE
By B. W. B.
CHAIRMAN