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 ‘handapproximately $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-
D The counties ar’emere .t’msteesfor the funds
t:Fonalpur:‘poses
and the’public schoo’lsape the beneficiarfes. The Commissioners 1
Court has the responsibility of investing and safeguarding this
fund. ~37Texas 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,
7, Section 6, of the Constitution of Texas,
ArJ”;icle
provides9 in part -‘-
‘I** * * be fnvasted in bonds of the United
States, the State of Texas, or counties in said
State, OP in such o,thersecurities, ana under such
raestrictlonsas may be prescribed by ‘law;and the
coti,nties
shall be responsible for all inveatmentsO”
(Underscorfng ours)
Ar;tfc:e28~4~ of ,theRevised Civfl Statu’tes,provrdes
for the investment of said fun.das 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'ountycannot 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 ,OpinionCommittee By s/%WR Chairman
Untitled Texas Attorney General Opinion
Combined Opinion