THE ATTORNEY GENERAL
OIFTEXAS
Hon. George H. Sheppard Opinion No. O-4013
Comptroller of Public Accounts Rer Is the Comptroller au-
Austin, Texas thorlzed to direct the State
Treasurer to release the de-
scribed bonds for the proposed
Dear Sir: exchange?
We acknowledge receipt of your opinion request of
recent date and quote from your letter as follows:
“This Department is in receipt of a latter,
from Mr. C. P. Sfmmons, Comptroller of the Uni-
versity of Texas, requesting the exchange of
certain United States Government bonds. His let-
ter is as follows:
‘tlWill you please authorize Honorable Charley
Lockhart, Treasurer of the State of Texas, to with-
draw from the Treasury the following bonds belong-
ing to the Unfverslty Permanent Fund:
$500,000.00 United States 29% Treasury Bonds,
due 195S/S6
to be sent to the Federal Reserve Bank in Dallas,
Texas, for exchange into a like amount of regis-
tered bonds of the same issue, regfstered in the
name of “The University of Texas, Austin, Texas.“l
“1 would like your written opinion as to whether
this department fs authorized to direct the Treas-
urer to release these bonds for exchange as outl1ned.e
We have been unable to find any specific statute au-
thorizing your department to direct the Treasurer to release
the bonds outlined in your letter. We understand, however,
that it has been the custom for many years to withdraw coupon
bonds belongfng to the University Permanent Fund and exchange
them for a like amount of regfstered bonds of the same issue,
registered in the name of “The University of Texas, Austin,
Texas”.
Bo,nds registered in the name of the University are
further protected from possible loss by theft or otherwise,
Hon. George H. Sheppard, page 2 (O-4013)
and the interest is paid directly on this type bona and elimi-
nates the necessity of clipping the coupons and sending them
in for payment.
Article 2591a, Revised Civil Statutes of Texas, give5
the Board of Regents of the University of Texas the authority
to invest the Permanent Fund of the University in bonds of the
United States. This article further provides that the bonds
of the University Permanent Fund may at the discretion of the
Board of Regents be sold and the proceeds reinvested for the
Permanent Fund e
We see from the foregoing statute that the Board of
Regents have control of the Permanent Fund of the University
in that they have the authority to invest said fund and to with-
draw the bonds and sell them and reinvest the proceeds. There-
fore, they would certainly have the authority to further secure
their bonds by exchanging coupon bonds for a like amount of
registered bonds.
It follows, we think, that it is merely a ministerialL
duty of the Comptroller at the request of the Board of Regents,
acting through the Comptroller of the University of Texas, to
authorize the withdrawal of bonds owned by the University Per-
manent Fund to be sent to the Federal Reserve Bank in Dallas to
be exchanged for a like amount of reglstered bonds of the same
issue e Precaution should be taken to see that the bonds are
properly insured.
Trusting that the above fully answers your inquiry,
we are
Very truly yours
ATTORNEYGENERALOF TEXAS
By /s/ Claud 0. Boothman
Claud 0. Boothman, Assistant
APPROVEDOCT 16, 1941
/s/ Grover Sellers
FIRST ASSISTART ATTORNEYGENERAL
APP.ROVED:OPINION COMMITTEE
BY: BWB, CHAIRMAN
COB-s-wb