E NE 

E-Y&AS 

Honorable Marie Winters Opinion Ho. M-42 

Firemen's Pension Commissioner 

1010 Sam Houston State Office Building Re: Inter retation of 

Austin, Texas Article 62 E 3e, Sec. 23~, 

Vernon's Civil Statutes. 

'Dear Mrs. Winters: 

In a recent opinion request of this 0ffic.e you outlined 

the following fact situation: 

The Firemen's Pension Board of Texas City, Texas 

at present has approximately $150,000.00 of their 

surplus invested in one savings and loan association. 

The entire amount is invested in the name of the 

Board and there is no method available to show the 

various individual interests in this sum which are 

subject to claim by the various persons covered by 

the Firemen's Pension Program. 

you have expressed concern as to the appropriateness of this 

type of investment and have asked our opinion regarding same. In 

addition, in the event that such an investment is not appropriate 

under the statutes, you have requested our opinion as to what 

action, if any, can be undertaken to enforce proper investment 

by the local board. 

Article 6248e, Sec. 23A, Vernon's Civil Statutes, provides, 

in part, as follows: 

"In cities having a population of eight hundred 

thousand (800,000) or less according to the 

last preceding Federal Census, and only in such 

cities, whenever, in the opinion and judgment of 

said Board of Trustees, there is on hand in the 

Firemen's Relief and Retirement Fund for the city, 

a surplus over and above a reasonably safe amount 

to take care of the current demands upon such fund, 

such surplus or so much thereof as in the judgment 

of said Board is deemed proper, may be invested in 

Federal, State, County or Municipal Bonds, and in 

shares or share accounts of savings and loan 

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Honorable Marie Winters, Page 2 (M-42) 

associations, where such shares or share 

accounts are insured under and by virtue of 

the Federal Savings and Loan Insurance Corporation, . . .l) 

It is our opinion that the above quoted article, which is 

applicable to Texas City, Texas, contemplates that only that amount 

of surplus funds may be invested in shares or share accounts of 

savings and loan associations which are fully and completely insured by the Federal Savings and Loan Insurance Corporation. Since 

the present insurance coverage is a maximum of Fifteen Thousand 

Dollars ($15,000) for each account, we are of the opinion that 

the Board of Trustees of a Firemen's Pension Board is authorized 

to invest money from its surplus account only to the extent of 

Fifteen Thousand Dollars ($15,000) in each savings and loan 

association. 

In connection with your question regarding the enforcement 

of the statutory provisions, you are advised that we are confident 

that the Firemen's Pension Board here involved will comply with 

the holding of this opinion without incurring the necessity of 

legal action. 

SUMMARY -----VW 

The Firemen's Pension Board of Texas City, Texas, 

is authorized to invest from its surplus funds 

only an amount of up to Fifteen Thousand Dollars 

($15,000) with an individual savings and loan 

association. 

rney General of Texas 

SK/lb 

Prepared by Sam Kelley 

Assistant Attorney General 

APPROVED: 

OPINIOR COMMITTEE 

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Honorable Marie Winters, Page 3 (M- 42) 

Hawthorne Phillips, Chairman 

W. V. Geppert, C&Chairman 

Malcolm Quick 

Pat Bailey 

John Fainter 

Mark White 

STAFF LEGAL ASSISTANT 

A. J. Carubbi, Jr. 

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