March 11, 1971
Honorable Thomas Bartlett, Jr, OpiniOn No. M-807
County Attorney
Falls Oounty Courthouse Re: Authority of County
Marlin, Texas 76661 Commlsaionera 1 Court
to sell unmatured U. S.
Government bonds beTong-
lng to the Permanent
School Fund of the County
Por the prebent market
valtie of such bonds, aaaum-
lng such market value to -’
be leaa than their par
value but In exceaa of
Dear ‘Mr. Bartlett : their coat.prIce.
In-your recent letter you’request thIa office to render
an opinion on the following question: _
“Does the CommIaalonera~ Co&t have authority
to sell unmatured United States Qovernment bonds
belonging to the Permanent School Fur&of the County
for the present market value of’ such bonda, If the
market value la now In exceaa of the price paid for
aUCh bonds, yet less than their par value?”
The ~eaponaIblllty for administering the permanent school
*d of a County Is vested In. the CommIaaIonera ’ Court of’ the
=‘untg. Tex. Con&. Art.. VII, Seo. 6 and Tex. Ed. Code, Sec.
17.81 and Sec. 17.82. These constitutional and statutory,
pmvIalOna preacrlbe the type of investments the COmmiaaIOnerS’
tit can make and provide that auah Investments “shall be
held by the county In trust for ‘the benefit of Ita publfc free
schools ,I’
It has been held by this offloe that SeatIon 6 Or Article
vrI of the ConatItutIon op Texas prohibited the selling of
‘a S. Government bonda belonging to the permanent ach6ol.fund
Or the county at a dieaount when such prooedure would result
In dIml.hIeung the permanent school fund of the oounty,
Attorney Generalfa Opinion NO’. v-1089. However, when bonda
-3920-
Honorable Thomas Bartlett, Jr., page 2, (M-807)
are sold for a price greater than the amount of money df
the permanent school find lnveated In them there would
be no dlnilniahlng of the permanent eohool Lund no violatic
of Sedt1o.n 6 or Artlole VII of the Texas Constitution and
.4:4;;qey Ceneral’a Opinion No, V-1089 would not be appll-
.
Finding no other authority which might be construed
to prohlblt the CommlaaIonerel Court from aelllng bonds
belonging to.the permanent school fund at lesa than par
value, it la the opinion of thla Offloe that the Commission
Court doea have authority to eel1 unmatured United States,
Qovernment bonds belonging to the permanent aohool fund of
the oounty at a .dlacount provided the dlaoount price of the
bond3 la not leas than the amount of permanent school funds
inveated In aald bonda.
SUMMARY
The CommIssIonera Court does have authority
to sell unmatured United Statea Government bonds
belonging to the permanent echo01 fund of .the county
for the present market value of such bonda, If the
market value la now In exceaa of the prloe paid for
auoh bonda,*,yet leaa than their par value.
Very truly youra,
CRAWFORD C. MARTIN ’
Attorney General of Texas
,dZ&&ti
Firs+ Ass&ant
Prepared by Ed Eaqulvel
Aaalatant Attorney ffeneral
\
APPROVED :
OPINION, COMMITTEE
Kerns Taylor, Chairman
W. B. Allen, Co-Chairman
Pat Bailey
Houghton Brownlee
-3921-
. .
Honorable Thomas Bartlett, Jr., page 3, (M-807)
Jack Goodman
John Reeves
KECADEF. MUFFIN
Staff Legal Assistant
ALFREDWALKER
Executive Assistant
-3922-
Untitled Texas Attorney General Opinion
Combined Opinion