Case Information
*1 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 ‘hand approximately $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- t:Fonal pur:‘poses D The counties ar’e mere .t’mstees for the funds and the’ public schoo’ls ape the beneficiarfes. The Commissioners 1 Court has the responsibility of investing and safeguarding this fund. ~37 Texas 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,
ArJ”;icle 7, Section 6, of the Constitution of Texas, provides 9 in part -‘-
‘I* * * * be fnvasted in bonds of the United States, the State of Texas, or counties in said State, OP in such o,ther securities, ana under such raestrictlons as may be prescribed by ‘law; and the coti,nties shall be responsible for all inveatmentsO” (Underscorfng ours)
Ar;tfc:e 28~4~ of ,the Revised Civfl Statu’tes, provrdes for the investment of said fun.d as 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'ounty cannot 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 ,Opinion Committee By s/%WR Chairman