THEATTORNEY GENERAL
OF =XAS
Honorable Ray A. Fowler Opinion No. C-733
Assistant Commissioner
Coordinating Board
Texas College and University System
Austin, Texas
Re: Whether money in the
Texas Opportunity Plan
Fund in excess of the
amount immediately
necessary for student
loans may be invested
in obligations of
agencies of the United
States which are not
unconditionally guar-
anteed by the United
States.
Dear Mr. Fowler:
YOU have requested our opinion concerning whether
money in the Texas Opportunity
_ Plan Fund In excess of
the amount lmmedlately necessary for student loans may
be Invested in obligations of agencies of the United
States which are not unconditionally guaranteed by the
United States. You point out that not all direct obli-
gations of agencies of the United States are uncondition-
ally guaranteed by the United States, and that a differ-
ence In the amount of the return on the investment is
effected thereby.
Investment of the funds In the Texas Opportunity
Plan Fund in excess of the amount Immediately needed for
student loans is governed by Section 9 of Article II of
Article 2654g, Vernon's Civil Statutes, which provides:
"All moneys standing to the credit of the
Reserve portion of the Interest and Sinking
Fund and any moneys in the Texas Opportunity
Plan Fund in excess of the amount necessary
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Honorable Ray A. Fowler, page 2 (C-738)
for student loWis may be invested by the Board
in direct obligations of the United States or Its
agencies or in other obligations unconditionally
guaranteed by the United States. . . , except
provided, however, that money in the Interest
and Sinking Fund, except for that which Is In
the Reserve vortlon of such fund, may be in-
vested only in direct obligations of-or uncon-
ditionally guaranteed by the United States which
are scheduled to mature prior to the date money
must be avallable for use for its intended pur-
pose. . . “(Emphasis added).
This provision makes two separate authorizations.
It clearly provides that money in the Interest and Slnk-
lng Fund, except for the Reserve portion thereof, can be
Invested only in direct obligations of the United States
or those unconditionally guaranteed by the United States.
However, investment of moneys in the Reserve portion of
the Interest and Sinking Fund and “excess moneys” In the
Texas Opportunity Plan Fund Is not subject to the same
restriction. An additional type of Investment is author-
ized for these funds, viz. direct obligations of agencies
of the United States not unconditionally guaranteed by
the United States. This Is evident from the difference
In the language itself and is clearly implied by the fact
that had the legislature Intended no difference in the
permissible scope of the investment of these funds then
there would have been no reason to make separate pro-
visions therefor.
Therefore, we are of the opinion that the Coordinating
Board has the authority to Invest moneys in the Texas
Opportunity Plan Fund, In excess of the amount necessary
for student loans In (1) direct obligations of the United
States, (2) direct obligations of agencies of the United
States, or (3) in obligations which are unconditionally
guaranteed by the United States. The decision as to the
type of investment, of course, lies within the sound dis-
cretion of the Coordinating Board.
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. l
Honorable Ray Fowler, page 3, (C-738)
SUMMARY
Moneys of the Texas Opportunity Plan
Fund which are not Immediately needed for
student loans may be invested In direct ob-
ligations of agcncles of the United States
which are not unconditionally guaranteed
by the United States.
Yours very truly,
WAQQONER CARR
Attorney General of Texas
JWF:vg
APPROVED:
OPINIOK.COMMITTEE
W. 0. Shultz, Chairman
John Reeves
Pat Bailey
Roy Johnson
Paul Phy
APPROVEDFOR THE ATTORNEY
GENERAL
By: T. B. Wright
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