March 11, 1971 

Honorable Thomas Bartlett, Jr, 

County Attorney 

Falls Oounty Courthouse 

Marlin, Texas 76661 

Dear ‘Mr. Bartlett : 

OpiniOn No. M-807 

Re: Authority of County 

Commlsaionera 1 Court 

to sell unmatured U. S. 

Government bonds beTonglng to the Permanent 

School Fund of the County 

Por the prebent market 

valtie of such bonds, aaaumlng such market value to -’ 

be leaa than their par 

value but In exceaa of 

their coat.prIce. 

In-your recent letter you’request thIa office to render 

an opinion on the following question: _ 

“Does the CommIaalonera~ Co&t have authority 

to sell unmatured United States Qovernment bonds 

belonging to the Permanent School Fur&of the County 

for the present market value of’ such bonda, If the 

market value la now In exceaa of the price for 

aUCh bonds, yet less than their par value?” 

paid 

The ~eaponaIblllty for administering the permanent school 

*d of a County Is vested In. the CommIaaIonera ’ Court of’ the 

=‘untg. 

17.81 and 

Tex. Con&. 

Sec. 17.82. 

Art.. VII, Seo. 6 and Tex. Ed. Code, Sec. 

These constitutional and statutory, 

pmvIalOna preacrlbe the type of investments the COmmiaaIOnerS’ 

tit can make and provide that auah Investments “shall be 

held by the county In trust for ‘the benefit of Ita publfc free 

schools ,I’ 

It has been held by this offloe that SeatIon 6 Or Article 

vrI of the ConatItutIon op Texas prohibited the selling of 

‘a S. Government bonda belonging to the permanent ach6ol.fund 

Or the county at a dieaount when such prooedure would result 

In dIml.hIeung the permanent school fund of the oounty, 

Attorney Generalfa Opinion NO’. v-1089. However, when bonda 

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Honorable Thomas Bartlett, Jr., page 2, (M-807) 

are sold for a price greater than the amount of money df 

the permanent school find lnveated In them there would 

be no dlnilniahlng of the permanent eohool Lund no violatic 

of Sedt1o.n 6 or Artlole VII of the Texas Constitution and 

.4:4;;qey Ceneral’a Opinion No, V-1089 would not be appll- 

. 

Finding no other authority which might be construed 

to prohlblt the CommlaaIonerel Court from aelllng bonds 

belonging to.the permanent school fund at lesa than par 

value, it la the opinion of thla Offloe that the Commission 

Court doea have authority to eel1 unmatured United States, 

Qovernment bonds belonging to the permanent aohool fund of 

the oounty at a .dlacount provided the dlaoount price of the 

bond3 la not leas than the amount of permanent school funds 

inveated In aald bonda. 

SUMMARY 

The CommIssIonera Court does have authority 

to sell unmatured United Statea Government bonds 

belonging to the permanent echo01 fund of .the county 

for the present market value of such bonda, If the 

market value la now In exceaa of the prloe paid for 

auoh bonda,*,yet leaa than their par value. 

Very truly youra, 

CRAWFORD C. MARTIN ’ 

Attorney General of Texas 

,dZ&&ti 

Firs+ Ass&ant 

Prepared by Ed Eaqulvel 

Aaalatant Attorney ffeneral 

\ 

APPROVED : 

OPINION, COMMITTEE 

Kerns Taylor, Chairman 

W. B. Allen, Co-Chairman 

Pat Bailey 

Houghton Brownlee 

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. . 

Honorable Thomas Bartlett, Jr., page 3, (M-807) 

Jack Goodman 

John Reeves 

KECADEF. MUFFIN 

Staff Legal Assistant 

ALFREDWALKER 

Executive Assistant 

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