THEAITORNEY GENERAL
OF TEXAS
HonorableH. A. Hodges
County Auditor,WillMmson County
Ge&+mm, Texas
Dear Sir: : 0pinion,No.O-7087
Re: If?municipalbonds held by the
County Iilprovements
Fund, are
sold, may the premium from such
bond8 be lnve8tedin U. S.
GovernmentBonds?
We acknowledgere&pt of yc$ opinionrequest of recent date, end quote
from letter,(18follows:
'IThiaCounty'8PermanentSchool Fund ownm quite a lot of Municipal
Bon&a for which an offer of rreieral
hundred dollerr premiumhas be-.
made, if the rale lr made the principaland the premium~111 be
invertedlz'b. 5. GovernmentBon&, by the Invertingof the premirrm
In bonda there will be good findnclalgein over the maturity of the
bon& rold.
.
"An the law directa the interertand leare money, except oil anu..
mineral leaae6,be trsnnferredto the State and County Available
School Fund for appor:~kkmmnn~-to the various Conrmonand Independent
School Diatricteon a'per capita rcholsrtlc berir it bar occurredto
me that premlunuon bonda may be held a8 Interest, if 110the law
would not permit the une of the premium to purchaseadditionalbon&.
“Kindly give me an opinionrtatingwhether or not the Commidlionere'
Court would be authorizedunder the law to Invest the premium of bOnda
mold in the purchaseof bonda for the use and benefit of the County
PermanentSchool Fund?"
The Attorney General'8officeheld in OpinionNumber O-823, copy of which
is enclosed,that profit derivedfrom purchase,sale, and reinvestmentof
the cash in the PermanentSchoolFund of a county should become-a part of
the AvailableFund (citingArt. 7, Section 6,Constitutionof Texas).
In line with that opinion,we believe that the premium receivedfrom the
sale of bonds held by the PermanentSchool Fund becomes a part of the
AvailableFund.
Hon. H. A. Hodgee - Pege 2 (O-7087)
You are advieed,therefore,that the Commieeionere' Court would not'be
authorizedunder the law to Invest the premiumfrom bonde aold in the
purcheeeof bonds for the use and bei$efitof the County PermanentSchool
Fund.
Very truly youre,
ATTORNEX-oFTExAs
a/ Claud 0. Boothmen
By
Claud 0. Boothman
Assistant
COB: v/ldw
Enclosure 1
APPROVEDFEB. 23, 1946
CARLas c .~'TCSHIEY
FIRST ASSISTANT
A!lTORNEYGENEBAL
APPROVED OPINIONCOMMITTEE
By B. W. B.
CHAIRMAN