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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 3e, E Sec. 23~, Vernon's Civil Statutes. 'DearMrs. 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 sumwhich are subject to claim by the variouspersons covered by the Firemen's Pension Program.
you have expressed concern as to the appropriatenessof this type of investmentand 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 enforceproper investment by the local board. Article 6248e, Sec. 23A,Vernon's Civil Statutes,provides, inpart, as follows:

"In citieshaving a population of eight hundred thousand (800,000)or less according to the lastpreceding 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 somuch thereof as in the judgment of said Board is deemedproper,may be invested in Federal, State, County or Municipal Bonds, and in shares or share accounts of savings and loan

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associations,where such shares or share accounts are insuredunder and by virtue of the Federal Savings and Loan InsuranceCorporation,

. . .l)
It is our opinion that the above quoted article,which is applicable to Texas City, Texas, contemplates that only that amount of surplus fundsmay be invested in shares or share accounts of savingsand loan associationswhich are fully and completely insuredby 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 investmoney from its surplus account only to the extent of Fifteen ThousandDollars ($15,000)in each savings and loan association.
In connectionwith your question regarding the enforcement of the statutoryprovisions,you are advised thatwe are confident that the Firemen'sPension Board here involvedwill complywith the holding of this opinionwithout 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 ThousandDollars ($15,000)with an individual savingsand loan association.

rney General of Texas SK/lb Prepared by Sam Kelley AssistantAttorney General APPROVED: OPINIOR COMMITTEE

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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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