Case Information
*1 uai Ausrnk 1.1. - .' .-----------xxxx ,: , Hon..Wllllam J. Lawson
Secretary of State Austin, Texas Attention: Mr. C...P. Sanders Qpinion..No. 0-4~22
. ,. Re: Investments for funds of I perpetual care cemeteries. pear Sir:
~. -Your~~re~uest.for.oplnlon has been recelved.and. ca&zfufuliy'c.on&ldered.by this department. 'We quote from your request as-,foilows:. ;:
. ..“Th~~..De'partment 1s in receipt of an ln- aulry Vegardlng the ellglbllity of the sinking fund bonds issued by the Sablne oyaity.Corpora- tlon ,~a:~an. .~ve,atment~.,of the fun 8 of:.the per- petual,care cemeteries which a.re required tom ,., fl.ie:~aniu~aI reports wlth,the office o.f,the ~.,.~'eb&$~a~,: of: State. ..,
?We:w&iId appreciate v&y much having the bene~flt of, your oplnlon'as to the legality of :-these* bonds as: aninvestment by a perpetual. : . care ce~@tery,'and we~.~are encloslng~ our-file.
wlth'reference to this matter for your study.~, ~Please return this file to u8 after your'de- partment has flnls.hed.wltb It.
'.-wIf 'you desire any~ furtherln'forma- tlon regarding the nature of this corporation, 'please let us.know and we will be gl.ad to..sup- .'ply,ypu with such Information as we:.have avail- . . . ._~ able !' . " :_
~Artlcle Verrqonis.Annotated'Texas Civil Statutes, .provldes for the investment of funds of perpetual .c,pe cemeteries. The. article provides:
[1]
. . . _ Ron..Wllliam J. Lawson, page 2 - (O-4522)
"Perpetual care funds shall not be used for any other purpose than to provide through + *the income only therearom the perpetual!-care‘!:-
stipulated In the resolution, by-law or other action or instrument by which the fund was cre- ated.or established, and it shall be the duty of the board of directors -of the association in charge thereof, and Its duly appointed trus- . . .
tee to Invest, reinvest and keep such fulids In- .- .vested in bon'ds.of.'the United-States or the State " of Texas or of any c,~unty,clty;or other polltl- cal subdlvlsion,of~.the~%a'te~.of~Texas, or In first mor?tga'g!es or on' imfirovea real estate, or in bonds:legal'for ihvestment: for savings banks, or trust companies lnthls State."
.:.. ': '. Artllcles. 1187a-9, 842 and 1269k-1, V.A.C.S.;
provldes,.f&. the:e:-l~ves.tment .bf: ,the funds.'& .Gavlngs. banks. :of this Stat&- ..The artlc~es:ar~..rat~~:~engt.hyi:~na will: not-'.be:.- quoted here, but it will suffice to say.he.&:'.that the"~bonds'. i of the Sabine Royalty Company will not qualify ati bond% in-. ~~. vestments for::sav.lngs' .banks of, $h+s Stzit+.under :any' of'said artIclesa . . . . . ; .: '. ;' .: _.. .i :" :: :::_:_". ii. i ...:: ,,: ,,. .: :. : : ~.: ~:
A%WQ& 4986;'Veinon% .AtiiBtated~Texa@ Civil St$&utes, provides that"the~~avis.'gov~~lng bank@:'and.ba$clhg corp&at+ns shall.apply to trust cotipafiltis wIie&.tio% inhonslstent wlth"tKe statutes relative to trust companies. 'Art&& ,589Ob; Vernon's AnnbtBtBd Texas Clvll'Statuteti, authorizes trust companies, %i?+relT-'.as &any-other corporiitlcins‘lahd' liddie's poli~lc) to ln- vest their finds'~iri'Natidnal Gu.tird~&%diy'Bonds~i .lir?t!&9ie 511;Vernon's-:Arinbtated Texas.C%viZ Stat&e-s, pro&desYthat the type and.'k<& of bondt3“ihich::banks and bank and trust companies .of -tMs. Sta;t& ini? ilivi+st'ln ,are as folloW3: ..~
"Public bonds'of'the,<ed'States'or of thls'state or lfi the bonds of 'any Incorporated city, county or Independent school district-.in-:thlB'.~State,?
'After a' careful analysfa of. the..:.abov&.ref&rtid to- statutes, It is otir+p$nlon that~the sinking fund +d8'-of Sablne RoyaltyZorporatlon are not eligible as 'an Investment
.'~ *3 Honorable William J. Lawson, page 3 - (O-4522) for the funds of perpetual care cemeteries under Article ‘926, V.A.C.S., and other pertinent statutes.
Pursuant to your request we are returning herewith your file In the matter.
Very truly yours ATTORNEYGEWERAL OFTEXAS .~ By s/Wm. J. Fanning ~Wm. J.,Fannlng Assistant APPROVED May.19; 1942
Gerald C. Mann Attorney.General'of Texas
Approved Opinion Committee
By BWB, Chairman
~WJF:.AMM~ bt