The Attorney General of Texas 

January 14, 1982 

MARK WHITE 

Attorney General 

Supreme Court Building 

P. 0. BOX 12546 

Austin. TX. 76711 

512/475aOl 

Telex 9101874.1367 

Telecopier 51214750266 

1607 Main St.. suite 1400 

Dallas, TX. 75201 

21417428944 

4624 Alberta Ave., Suite 160 

El Paso. TX. 79905 

9151533.3464 

1220 Dallas Ave., Suite 202 

Houston, TX. 77002 

7131650.0666 

SO5 Broadway, Suite 312 

Lubbock, TX. 79401 

SWi’47.5236 

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McAllen, TX. 76501 

51216624547 

200 Main Plaza, Suite 400 

San Antonio, TX. 76205 

5121225-4191 

An Equal OpportunityI 

Affirmative Action Employer 

Mr. John Lloyd Bluntser, Chairman 

Board of Regents 

Pan American university 

Edinburg, Texas 78539 

Opinion No. MW-425 

RS: Disposition of restricted 

purpose funds donated to a 

university 

Dear Mr. Bluntzer: 

You request an opinion of the legal status of $58,324 in funds 

transferred from your Unrestricted Donations Account No. 2901 to the 

Business School Excellence Fund. 

It appears from your letter and supporting data that Pan American 

university received $76,725 in donations from various companies. 

These funds were restricted to “se in the business school and were set 

aside as a Business School Excellence Fund. It further appears that a 

transfer of $58,324 was made from the Business School Excellence Fund, 

where the restricted funds were placed, to Unrestricted Donations 

Account and then returned to the Business School Excellence Fund. 

Section 112.34 of the Texas Education Code provides: 

The board may accept donations, gifts, and 

endowments for the university to be held in trust 

and administered by the board for the purposes and 

under any directions, limitations, and provisions 

that may be declared in writing in the donation, 

gift, or endowment, consistent with the laws of 

the state and the objectives and proper management 

of the university. 

That statute is controlling. The $58,324 in question was, 

according to the information you have furnished to this office, placed 

in the Business School Excellence Fund, removed, and returned. That 

sum is now in the proper account and any use of it is governed by 

section 112.34 of the Texas Education Code. 

Your letter also indicates that a report of the Governor’s Budget 

and Planning Office suggested that this sum be placed in the General 

Revenue Fund of the state. Such transfer would be contrary to section 

112.34 of the Texas Education Code. The funds may be used only for 

p. 1448 
Mr. John Lloyd Bluntzer - Page 2 (MW-425) 

those purposes authorized by the donor pursuant to section 112.34 of 

the Education Code. 

SUMMARY 

Funds received by Pan American University by 

gift or donation are subject to the provisions of 

section 112.34 of the Texas Education Code. 

Very truly yours, 

MARK WHITE 

Attorney General of Texas 

JOHN W. FAINTER, JR. 

First Assistant Attorney General 

RICHARD E. GRAY III 

Executive Assistant Attorney General 

Prepared by Jerry Cain 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Susan L. Garrison, Chairman 

Jon Bible 

Jerry Cain 

Rick Gilpin 

Jim Moellinger 

Bruce Youngblood 

p. 1449