### OFFICEOF

# THE AlTORNEY GENERALOFTEXAS **AUSTIN**



### Honorable TOXI

C, Eiw~ stat0 AWlltOr end **gtriO~O~0p Aumtlnl**  

### Torar Deer Sir:

a

## 0rthi8 

## dreu&laoooant8 te he8rurW in 

## thapap nbaaed 

## tertate embeen l mrS.gnrdby 8tiia l q oeat roou have ark& hove #taOed 

### general d.11 be 

### l

mwerod 

### repv&ioh thrr.8p$mr ia SOUP

-lb this provlrionnan6rtory opal theSteta Tr66aurexW 

### Xtafour **rht** 

### question evldentlg you #r* r8- ferrfng 

### to Artlolr 4372, a8 aam by 

### the I.2~4Le&ir-**lature in**  **1931.** sala **article made4**  aa lollo*.s: *TheTreesurer ahall keep true accounts of the rfioa!pts andexpanditurer of the pub110 -txmys 0: the 'Fres6ury. anC close his accwnts annus,llp on the Pat 

### aey of Au,Tust, vlth the ?rop&r leiv.~l TC!UO~~TSfor the nam, dlstln~.u:ehia~ batwoen the rtca2pt.tm2 disburtammts of

’ each fl~scal ye)rr.* Youarc advised that Artlole ~372aakea it aanthtory upon the Stetc Trsasurtr to keep true auoounts 

### 0r

# tbs

rectl.pta and exptnaiturae 

### or ths public treasury. Your ettentlon is also celled to the feet **that** the Le.$fslature has not left ths matter of the katrlng of t&c sccoucts to tfm State Prceeurer'fi dieartticn entlxalg, but has pesssa uummous artloles troa time to time which detfno thr type at racordr aaclacccmnts **to be**  kapt by 

### 88ia state Treemurrr.

In oonasctioh with your queetlol number 1, you have asked the. followlAg quartloaa:

“2. Dosa the ~rOri8ion *true aocountr **or**
. . . ax~eadfturee of mbl.ic mxmym * nwm that the State Treasurer nnaetlgtp a rsoord/or account discloelng only the numberand stunt of State **warraats** Paid by h&a(ISI

State Traaeurar? ,-

**“ 3.**  Or daen ‘true aoeounts 

### or exptndltures Gf public liontya* man that the G,tsta Trtaaurdr must kae3:Brecord/or naoount 

### attting out in detail the nuabcr 

### ttnaasouslt 

### 0r east. state mrraat reeelvad ~(1 pid **by &lm**  **a8** Stste **TraaaurerT**

**“ L.**  iioca this statute raau that the Stata Txtaaurar mmt also keep a reaord/or aocount setting out tha person, aorporntlon, bcnk, eta., who piTi8Ated such wplrrantto him cs State Trashlurer **and wha**  **rsoalved pa?-**  ZQenttheram? "5. Grdoer this statute meanthat be must alao keep an BCOOUat/Gf record showingEonorablo To:.\C. Tin&, 

### 73~8 3

**that ti** **‘ e**  **stat.*** ha8 **aischrf0a ite**  obli?atlon to the payee or .euch warrant?* In answer to the **above** quoted qutrtlons, you **are advised**  **that Article**  k3e2 

### or Vernon's **Lnnotatrd Clvll**  St~~tutca, a8 emended **by tke**  **L2nB** Legislature in 1531, ccmtrols the type 07 reglwter to be kept **by** the Statr Treasurer **to show**  **the iosueoce**  **and poymbnt**  **of** 

### warranta. said articla reads 

### as rollons:

*?ha Tressurrr S!XIX keep rs&ieters of **warrent 8**  **lowed,** on6 for eaob class of warranta. The Cz::ptrollor~ehalJ furnish lists of warrant.8 lbmod, which lists shall ba oosparaa with the rarrente nnd shall c.:nntftuts the **Traacurar ’** **r** rea,lstars of **wnrratita** isstma. Tbb mounts of warrsnta lssurd aball br added **by the**  **Trsaourer** and Fortd a~atmt the totals cf the warrent reglst~ss. The date or peymant of all **wsrranta** shall: be ata=peQ on tbe aborr regl8ters. The **Trsraurcr** shall krep e *warrant8 paid re@rrter.* In thir register the warrents shall be entered eaoh **day** arhmn paid; the numberandamount OSasoh warrant paid baixg entered. S~arrantrshell bo maped **bf olaesra**  and separate **tot.816** of warrants paid fmm aaot fund shall **be** ehown, es wall as the grand tctel of all warrant.8 

### p0ia raoh day. TheTraesurer shall furnish to tha Comptroller eaoh **day** a ccpy of the warroztta ytld register ehowiw the

.~ werrants ra14. TheTraestmer shell keep e rag- : **later** of warrants cancelled, onwhloh shall **be** entered the detalla of all warrants oancellaa.-
It is tc be noted **that** tCe wwammta paid registera which the State Trrano~rsr !maetkeep, under thasi;thority of the ebc9e quoted erticl4, mat state the numberend mount cl each warrent paid. That **iafor?ation** concernhe eeah uer**rant** is to **be** entered cn the 3x9 v:henthe warrant is paid. In other wor00, th2 Laglnl3ture has mt left thle matter up to 

### $56Qiscretlon of tfie Treasurer with the broad Uutr On **said** Treasurer to keep **trus aaootmts**  and **sxpen~lturae Of**  public amaps, **but** baa (r.onsfurthpr 6~:: has stated syrclficell~r xhst iafonetion ehsll be co::tafned in the warrant8 piQ regSster. The Legislature haa not ptovfdad herein that t?lQ

rarrante paid rsgleter shbll lndioate tc what person or fim the warrant was actually Fald. UnderHonorable TomC. King, 

### Pete &

Artlole 4382 eaoh armant is to be set cut aeparetely In the warrent raid reggister as to the numberof raid 

### warrant an4 **amount.** %ltlTr66sUrer's re&itW Of Warrenta Issued In

# Zurnished hlrpby the Comptroller **aster** such **varrenta** sre Iseued. In this rcspctct It Is to h poil?tsd out that suah Warrant rsgiater, a oopy o: whioh tha Ccnptrollsr makesend furnish613 to 

### the Treasurer, contains the information 

### rsquired by Artlole 4359 as follow : *Andsuch regloter shall consist of' en entry of the agaunt of the vsrrant, nameof tha pags, epprcprlatlon to vhloh 

### oharged, and such 

### other inroraation ee may be daamd advisable by the Cos~troller.*

**A** copy 

### of thle warrant reglater Is kept by the Treasurer, end It In only wheu the warrant is eotually paid that th8 smueIs to be entered into the warrants paid rsgistrr. In this m(lnn6rths Treasurer Iti protided wltha rroord xtilah shove Whentha varl-ant was peid, and thereby whenthe atete has disoharged Its obl$Fatloa qa 

### such warrant. Theactual payment by the Traasurrr or tha **varrent** is under tht authority oi Artiol6 1371, Whiohprovides In part as rollowa:

*The Treaeurer shall count6rsIgn end pay all varrants drawn by ths Coqtroller on ths Trsasury wh:oh 

### eraauthorized by law

. . .* EywayOf 8mnn6ry, th6T6fOl.6, the Leglelature ha8 llOt b.?ft th@qU68tiOn Ofthe type OfVtirl-eZitr6&ist62' to be kept to the disoretion of the Stat6 TreaSUr6r tandsr the gcaaral 

### prorlelon that hekssp trua accounte of the sxy.anditures of pub110 m~nuys. **but** th6 **LC@#JlatUre -S**  **eons** further antihas epcclflcally dsflned t&istype of 

### regleter to bs k6pt by the State Trcaeurar and the infomation to be coatolned In such rsglstar. It ts tha opinion of this dspertmnt that Article L38!2

### must be strictly omplied with by the Stat6 Treasurer In ksepiug the registers and oooounts.

“6. Certain 

### banks, werraat oespanIsa, sad finance **aaupaniee** here follov6d the prsctiae or 16udIm ':!omsyto atats em~loyeee**iioncrable** Ton **C. King,**  **Fqe 5** 

nW.c3 loans %re nacurcd by 6:: aesipment by tha enployse to t&avmrrent coapany of all warraute due muchem,~lo,posby t.be stoto. Thmi:rr:o uead by 3oan Cw Coapsny ramIs a6 tollws: ** Pate 193- ;;0t6 $:w Vieaslrud front John Doe Date ~ed~l%uoe 7i Comyny the **above** aaount as an adranc6d payment tI \ f to me

### for ths purohase of 8wsrrant or **check** $ ‘P **due tm**  by the Stats at Texas or Fedsrol Government In the amount and for the prriod stated below. 1 htreby oesttiy that 1 have not &i~Qn6n order or ae~l~ned raid **warrant** or aheck to any other lndirldual, firm or oorporation. I hereby authorize **delitsry** oi said mrrrant or check to ths above Company, and author&t6 said Coqxny to 6ndOr666638 tor 166Kh6nrcosivsd. The dlsoount on this Item Is **to** be on the full **amunt**
or warrant or **check. For**  **value** r%O6iV6d. **Thl8** order la Irrevocable until tiio above eaount is fully paid, Including 10%attorn6y’e roes. ( ) Blue ( ) vh1ts

J Fxpsrls6

.., .."

. . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . .

“This form Ie not **aworn** to before 6 notary publlo. *(a) Ia **thle** assI&msnt legal‘? *(b)~ U so, is it bind&w upon the Comptroller or Public 

### Aooounts or 6 publla ofrlolal or anployeovri:cdf.s^rribcteo such warrunt 60 thst upon tlra pr&antrrsent to him nf this as6Qnment be aucit.deliver to th6 naslgnar all vzwrants cr eny earrant in his ~ometiuton in w)iichthe asclgor Is tmatedpayee?” The instrument rhiah you mclaes 1~ on6 whit& the R~E~O

ezplcpoe a1gr.a prior to the ioeuanas to him of his at&cc pay asrrant. Thein8truwnt thursfore operates in tArOti& a9d in f8ct s8 **a %Qhrp**  **eZS.%&!UWRt, end**  **LBURt br**  **oon** aidrr~~dSCsuoh. 'hl VOiiditr Cf-CiGOh ifAStURiL8nt

dSpSll6$ upcr, the assl~nebilitp.of th6 U,oLeryof 8aid a-ployee, rhlch 6618ry th8 warrant repreasnta. It i8 t0 be pOiCt& Out that theie~ri@3t8eEt Cal18 f@Tthe ~UrCh880Or train8f6r of tr.owarrant or thank due the sapioyes. ml18 iastrumtrnt emi ths puestlon **you cwkT&itczplatt,**  tb6reforta, **that tba**  lrstrulnent Is anesnQnm6at of 6wsrr6nt or check due the employeei because ot talery which .",a~b6an earned. In thi8 c.ancttion it is to be pointed out thet the unearned malarp of a public officio1 aannot ht sr;aigned. **5 COl?FUS** Juris 873 CoZtcin8 the fO~lUWiRgf8Z@Mg;e:

"The r88aon for the rule is not 8 desire to protoot t&s private lntsreat of euch of

### tiarrs, but i8 one of publlo policy, based on the neoaslsityof sacurine,the aftioiraoy oi ths publia service by lnmuritg tbst the fundo provided for 

### its ~latananoo shall be received by those whonra to perrormthh work, at t&t periods appointed ror tholr paymtints. mhpplicntione of **rule.** The rula that an offfoar camat n&e a raiid asai@Imant by cntioPp6tion of his serlery or fe6s be born ap?litd to siawny d-iff'arent c:aesee of offiaarn, including orzp offloers, naval orriosrs, superintendent in dapsrtmeot of public cLariti66, assistant parlxmentarj ccunael for t&e treemurg fn EnglenS, clsrka in She United f?.tEtcE**trst36Urg dO'?Oirt.aent,**  ?napeotora cf cuetwA3, xlel5. Osrr16r5, If@thouor ka6~6rs~ couc:y es06s3,'cr6, civctry treamrerr;I c14rkd or tha peach, clerks of wurt, nuotcre In charicory, recefvers, Cistrict ar proaeouiir*: attOrn8ya. **sheriffs** ) paica.?l8n, STUI 5unioipal firan%n."Honorable TomC. King, rake 7

TLe Suprem **Court** of Texas in tbe case of Stats Blatlone 

### Bankor El Faso 

### VS. Ylnk, 24 s. if. 256. held that thr above quoted rule applies in Teaaa, **and** stated as followa:

(at pages 

### 257-258) ".
. . .The law pmridoa ooapenaatlonror 

### otricial lenloainorder to enable the offioer to be free 

### fromthe oarea O.r**aaklng** provlaion 

### r0r his own rupport and that 

### or hi8 

### rmily during the **term** of offloe, that he maydevote his wsolo time to the dlachargr of the 

### dutisa or his orrloe. Ir such orrlcer ia permlttea to arelgn Me arlary or reaa before earned., he as9 thus deprive hlmself **aEd** melif 0r 

### thls support, and to aeouro it he muatlook to $0300other source. thereby aeprlvlng the atats 

### 0r the careful end thoup,htful attention that the publio lntereat demnds. Ahunsry man 1s weak in the precrencs of temptation, no

### setterwhat maybe his ability to withstand it. in a sta

### toof IddepenUenoe. To deprive ruch an

### otrloerof the mana or daily support for hlmaalt and ramii~, while his bi;Peaust be given to work in whhboh he oau axpeot no relief, would.be * .~ a strong induonment to resort to aathods

whloh, ir not dishonest, ma0uiaat least be inconelstant with the yubllc good, end the dlgnitg of his OfflOe bs deatroped bT losing the rcspaot and conflbence or the pub110

. . . .*

sea also tha cam of Villliaaa vs. Ford, 27 

### s. -2. 723.As 

### tojust whiah eaployeen are oonsldered pub110 officials under the holding of the Supreme **Court of**  Texas lntha P’ln* oess, m:re, lo undecided in Tame. ‘i;euan, however, see the extent towhioh the rule has bean axtended fn the quotation iron i Corpus Jurls, **supra.** The court ot Appeal8 0r tintu0ky, in th8 OOSO Or SOhIIiitt WJ. DOO~i43, 1LC9. Wrn 197,XonorabLe Ton C. King, page 8

hsld the rule to apply to e rlremn. In eo holding the court derined the **tam** “public oftlceP eu it is **usrd** in this oonneotlon, ae rolloios:

(et @age 198)

“The word8 *rubllo ortloer, 1maueed In theme oplnlomr, man one rho rondera a pub110 servloe; o sertloe ln uhlch the canera1 pub110 ia lntersatea. For Ii It were not **SO**the **reason** for the rule would be wanting, ineemoh as all the opinions exprassly aeolars that the rule 

### lonot adoptad for the benefit or the one rsndering the service. Is a tlrenan n public ofrlaar nithln this raanlng?R TheSupreme Court or Missouri l tteca+ladthe rule to an aselgnment made by a post orrlce mall aarrler. S8e State ve, Wllllamoa, 23 6. V. 1.054.

The rule announced above, however, doer not apply to aalarlrs or *rages or tees or public ofriOera uhioh hava been earned, although the sans **ars** ,unoolleoted. The Court o? Civil kppeela OSTeme, in the case of Sager ve. Glty 

### or lFao0, LOS. W. 549, writ or error reruard by the’Suprane Court, so held. Tha oourt stated 8%follows: *- ~; (at page 550)

“r
. . . %(Ido not hold that an officer cannot assign his earned fees 

### or salary, beoause the right to do so would not produoe the ease results **that wouLd**  follow the snrorced application Of much compensatloa to the payment of hle debts. If the moneywere in the treasury to pay tha oifloer for the services rendered, there would be no InUuoemeaf **to** sell him claln **for** less than its race valur; and, It the zoney were not on hand to po,yror the services rendered, it might 

### beneoessary for the wrrioer to dlsoount his clalrP, in order to &et the maans to sup

### port himself end 

### f8~lly

. . . ."Honorsble Ton C. Klll;~, pegs 9

The ~a)r~e

prlaalplo \‘a~)announced by the court of Civil kppsals of Texan ln the csss of Tho;apsonva. Cu;u;;, et al, 

### 353. 1.L12. The oourt atetrd as

:

/*It is 0lrarly Izaplird from thosa authorities and tbr others cite4 In sppsllant*a brief tbt whenthr official 

### aerviorseraperfomod, andthr salary or 1~4 earned en4 due, publlo polioy does not prohibit their arrlgnment

. . .* Th6 Oalvcston Court o? Clv5.1 Appssls In thr oar4 of Bated vs. Flrrt Stste Bankin Csldwell, 

### 105 S. 91. (26) 784, rrlt or 

### error dismissed, bald thst a public oftloer’s fear ware sss~,aable after the nape ha4bean **eemrd,** rsgsrdlese of the fact that they ha4 not been oollected Promthr Stnte Comptroller, snd b state warrant for the 88ms

### hadnot **been** Issued. Ths holding In that case aonoenad fees of a tax colfraotor which had been ase&ned after thal had been eerneu, but prior to the lssuaaco ot a state warrant by the Coaptroller 

### In paymsnt of the BBIOO.

Yourmaadvlrrd, therefore, that the tmeernsd ealery of a pub110 cftloial Is unersignablr, **bat** that ths portion of hia we&m or sslary which has barn earned maybe eral$nad prior to the tiao ewarrant In payment of the sass 1s **145u4d.** In this eonneotlon your attention is again called to tha hat thst the parparted ln-

,’ strummt considered 

### in this opinion 

### r’roltda thetths warrant or oheok la **due** the e~ployre.

Your attention **la** further called to the fsot that where wa&es or salary were properly assIgnable because the ease had been eornsd, but e Warrant for tha 

### mm had not 88 yet been issued, Artlolc 6165s. Section 6, Vernon’s Amotatrd Cl911 Statutes, would apply. Said article readi as follows:



### *Suchbond whenso aprrcsvsd by the county **JuEgs** eke11 be 

### fitid,together with the said aft5davlt, in the County Clerk’s otfice in the County in which **add loan**  broker is located end doing buslnese, an4 ths said bon4 shall be rsoordad at length by the County Clerk in a well boundbook kept for tilet pur~:onri, TL<>t$.$Ct).rq$jsigarnent of weg.493x contract provi4ing for the purohase oT !:a;!es, mortgages, i‘cwr 

### of Attorney to oollcot or o%br tra12~iar of the ealary or vmgas of 0 mrriled ixm 6n4 each bill ot oale or chattel .aortgaEe u~an housetold or kitchen iurafturs cl Haarried aan shall be.said unless the rie.:;ie be msde end giran with the ~ooussnt of ttrowlf ”e, on4 such consent shall be evidenced by the wife jofninp, 

### in the assiFnment. mr,rt~aga, Fowr of Attorney to colL0ot, or other trscsfcr 

### cf salary or wfqas on:3the aifriing GP her nma thereto RIX!by her xepera+:e scknowled&- ment thereon, taken plndrrrrrtlf5.d to by II Frcpcr offlosr, substent5ally fn the rao4e provided for the acLnow2e4gment of Hwife In the conveyance of DhowsetenC.n The above Q:,iOtsd article snu?d apply wkcre wages 37 eolary wr6 balng saalgned prior to the loeuaaaa of the wnrrent in paym6nt o,C3~8E~zL:E.t:r 

### necaerlty it would sot a~@g u;hera t!ze *.wwrantV:&SCarruedffir the eam, beoeuee then t&e aeze nwld not operets 06 Eceg,e eeeignment, but would operate aiuthe trsnsfcr of a SCRnegotleble instTum6ut or a8 the CaSkiii?&-in Of the e.%- ~loyse’a rey chsck.



### IAorder thrmtx4z2y haable *toascerta5.r~ the validity of an aazignxent of a state warr:lnt, ?t is newefsary to sefdexactly vit,at type 02 eaiinstrument such e u0+~at LB. The btet exg?eanisn a~ to the cL;-ratter cf Rstn:e warmnt ~88 3z<!tlSpfu:'ga %orrow of the

# Court of Crimdnel Appsulrp .:-f

### 3~3s In the mse of F&mar0. rt.ota, 58s. vi. (22,) 95. Tie oourt I3tnte4 

### as follor~s:
'2,626.95 was nnt a nngotiable instrument Tfi4 V::6rlYIlitISSUQd tg the StTttt?

### fOS
in the 

### aansa that it scsu34have sntltled nn imocant purchaser of the warrant to **acquire f?ms**  **tie** st:ite the **aniwnt ototsd**  on the fuse rf

’ the wsrrant, but auah pur

### ch~x?ieew?wld aquiz-a z-in%orathar, a ri@t tc: collect from the State tha ezwnt that MIowed the appellant, msaly, $,626.95. Loauthority tar t.heissurno8 of the war-Honorable Toa C. King, ~"6;s 11



### rant for th6 o?rAlntstated in its **race** or to pay **the** full **amcunt of**  **such warmat**  **eximtad.** Nopurchaser of the **wr:ant,** whether In good faith or not, mild la&ally demandfro3 the state the ragment of mere then the amunt which xa8 owing. **se6 EDOr.**  **or Law**  **Froo.,** vol. 11, r;. 531; volume 7, p. 818; volum 36 p. 895; Corpue Jurla, Vol. 59, & **8 406;**  Tar. JUT. vol. 11, Q. 6 5, 8 118. t? T3pesklng or the negotiability of **a** werrant, in t%r saotlon of Corpus **Jurls mentioned**  above, it la said: ‘It Is not, horetsr, a negotlablo lnstrumsnt In the **mm84** of the law narchant 80 aa to shut out amagainst e bcne fide purohaeer lnqulrlas 6~ to ite validity or preclude **detanmr** or sat-offs whioh aould be assorted as against tha orlglnal paysa. l ***** ***** **A.6 ag9inst**  tha **8tptr ths**  **soeigaar** aoqulres nogreater rQhte than the party to whoa the warrant was originally ltwued.* Vroa the Ssotlon of Texas SurZaprudenoe mentioned, tha fol.lowlng Is quoted: %hll.r warrants are in thr ordinary form of oo~merolal paper, they do not poeseas the quslltles of such paper; they are not negotiable lnatruments.’

. . .n *- .I Thdr8 oau be no **question but**  that **etste** warCent.8**are** not negotlclbls lnatruments as t&a 8asa were knownunder the lau of mrohants. Your attantIGn ie next called to Article 569 of the Eevieed Civil Gtetutas Gf T6xnal which reada as followsr

"The obl@es or **easlgnae ai**  **any** written lnetrument not negotiable by the law Gfzmrchsnte, zay by asalgnmsnt transfer all his lntrrast tharain to another." !% era unable to find any reason whyArt1010 569would not fgply to state warrants. Under the author-ltp 

### of the **above** quoted article, it has been held that

**oredlt** msnorandum**may**be assigned. **See Rsd**  **tbtor Co.**  v. Goad‘Motor Co., 24 5. W. (2d) 67.

It was alao held that tlar checks issued **by** en employer are assignable by en mployss. See Aldridge

**‘ Lumber** **Coaprnp ve.**  Graves, 131 S. W.g1.6, writ of error d-kalassd by the **Bupenr Court.** 

**Th5.s**dspartmsnt **ruled** in en opinion dated July 1, 1937, addressed to the Honoresbla George A. Sheppard, Comptroller of Fubllo Aeoounta, Hhlch opinion wes written by the Eonorabls SoOtt Gaines, Flr6t Aaeiatant Attorney Ceneral, **that** whlla W>te **wnrrante** are not nagotlablr lnstrumrnta, tha $838 my be aaslgnaa. Said o?lnion reade in part aa follows:

“It is the ~41 Battled law of this State that Etate or oounty warranta are not negotiable inetrumenta but are NOnep.otlablr lnstrumsnta r;lthin 

### th6 law marohant **but** the title **to aucb**  **wsrrmnt** may **be** transferred **by** endorsement anb delivery, but an assignee **would** aoqulra no greater r1Rht.e than the garty to whoathe warrant wea origlnnlly 

### ioaued. In other words, an ordinary State warrant drawn ayei-t the Stats Gsnoral Mvanue Fund .-in the hands of an ses&nee would bs eubjeot to the aazaedefensss and 

### off8ets whloh could **be esssrted**  

### against **the or**  iginal payee. Spsrr v. Stata, 58 ?. X. (26) 95, 123 

### Tax. **Cr. hip.**  **188;** 

### tit bt Belton v. Earria Trust **and** Ssvlngts ark, 8 273 **6. W.**  911, afflrsad 263 S. 110 TOI 186 ‘i’il;64’ Laeator v. Lopez,

. S. V:. 393; Galloway PD. Sheppard, ‘69 s. P;. (26) 4l7 (wit of error dimalsaed).

“Therafore t anrst-.erlngycur flrat queatlcn, you are reeljeotfully sdvlsad that a warrant drawn against the State **General Rrvenue**  Fund is not (Inegotiable instrument in the sense that tha law marchant would shut out as ctpaiast a bona fide puroheser lnquirlas 8s to ita velldity or rrealuds defenses or set-offawhlah cou?d ba asserted a;la:nst the orl~lnal paycre. A4 o~vx!nrrt the state the aerf@nas **aoqulres no**  prsatrr ri&ts **thsn** the-party to whomthe warrant ‘was originally issued. ln other words stats werraata are not negotiable instr~enta l’urthar then that title maybe transIerred by anQorsenrnt and delivery.” You Oomuwntin your letter on the faot that the ions for the vaTrant sss&nment is not sworn to berore a notary public. You 6re advised that It la anneoaaeary t&t a written **eesigmrhnt be**  **morn to**  and ecltnowladged. Sea 6 Corpus **Juris** houndan 1099.

You **ore a6xt**  conoerned with wbcther or not 

### aaah warrant asslgmant is binding upon th6 state aTent who **delivers** the warrnnt to the paye8. As a pneral rule, valid essl~nmente ere hindlng upon the **debtor** or peym, Thenhe la given mtloe or the **aasifimtnt.** This rule has been appllsd by the courta cf thla state to n sltustlon where a non-atgctlable instrument is transferred 

### under Artlalc 569, mpra, sad it has been held that 

### uadrrsuch artiole, If notice is 

### clvtato thq debtcr. ho la **bound** theraby andhas to deliver said rerrant to the esslcnee. Thie cono1uslcn lozlaally folloa;s frcm the statement of the court in the case ci Gulf C. k S. F. Fy. Co. v. Xldrtdgo, 80 s. 7:. 556, **as follov:s:** 

l - ***Article 309**  **of the**  !?evirad**Statutes**

of **1895** provides that the seslgme of any instrument asntionsd in the precediw erticle my maintain an **action** thereon in hla own mm, but ha shall allow every dltrcount and **clefsnae** arc?lnat the samewhtah it would have been subjrot to in tha hands of any 2rtvlous owner berore notice of the es.6ig.nsent was given to the defendant. Theprevious article referred to is artlale 308, which authorize8 e pledge6 or ase&nee of any lnstrmant not nagotlabla by the law narohant to transfer by aaaignment his interest to another. **It** is true that thsse provialons **of** the **statute** tiss the expression %rltten lnstrtment*, but weare inclinedto the o:!iniol; tbst :Lcm bt:.locksd to In corder$3 c?eta:r,f2e uporiwho9the Supden r~.sGnto estotllrih the fact that rey- .mtntV.-SE

?lacu Y it2 orating ;q- ?:ith;iut cctlca nr tt;;6rar3~xlant. T&5btGtUt6 ~rooieae thnt tti~ nzol~nzsnt la ::sde subject to 211 ::f the ,:efe.lscs bsfcra ZIOtiCoOrthe S$~i~nclWIt MS ,c.iven to the Cefcndant

. The use of the OXpZ-4Z6iOn'notlce of RaL'fGment v:as cfvcn Cothe .;efendcnt' izplies that the Cefsndsnt mutt bo &iven notice of the asalpment in order to preclude him rroa sasertlr,: a settlemsnt tloda ?,,ith the ori,gi.nel creditor. The rule my pcsslbly be othsruioe 4th reftracce to negotiable Instruments. Adebtor v&o settles cith the original creditor e nsnnegotiable claim, +lthcut notics thet it hae been trecsferred. ought to be yrottotsd; andweare Inclined to the opinlcn thet the burden of proof recta' upon the aanipnee to establish eom fact indlcatirdj that the debtor had 

### notice at the ti?ne the oettle~ht ues zade with the origins1 creditor.

. . .* The says eoccluaion my also be dram froa the **langue@a of**  **the** %utrme Court $9Texas in the cam Loft Sta;l2ord Coqreoa Cm;,eny VR. Farars 'LYerchanta Katioml Bank, 143 2:. :':. llL2, El8z=ollowe:

"The rvcsi;lt v:aacot *EirF:nable at Cow.c~nk:iv; and this ;.:urposa 7f IkieLezlsleture in ecacti~ tht article copied ?ZiQB to zlske such lnetrment scsiqabla, eo that the pc-~son to :::hc?aaucb inntrtinents shosld be r.e:;able z&+ht **asnign** t.!is contreot, thus ;rlac.fnF. the so:ci,~ne4 in tLe place of the assignor. Eut th6 sani::nca :;f ruch contraat cwid not have suet?t!.e 7..:rsr thereof at cmmon Law, but Zust have used the mm of the origIna obll gee. TSenforce the right 

### acquired under art?cle 3G8, the Ln&lelature enactedBomrabla Tos C. King, paps 15

artIel0 

### 309, Reviaed Statee, Welch reads: ‘The aael~naa of any lnstmmant iasentloned in ths pracedl~ 

### article may mintsin **an** action thcrron in his ownname, but ha shall 0110~ every discount anddefense agr.ainst the saoa rhloh it w~ald have bean subject to 

### In the hands of any prevloua owner bofora notice of the aaslgmen: ma given to the defendant; and In order to hold th6 aes?@or es surety for the paymaut of the Inatrumnt, the evolgnas shall uea bus dIlL~ence to aollsot the mm. "

. . . wS~tIola 

### 309 made

### it the duty of the bank, when It received the raoalpt, to give notice to the Cor,press Cozyany of the transfer in order to hold the obl.lgor responsible to the asnlgnca.

. . .

“In Sraarlngan v. Lucklap It wee said: 'It me the duty of the aaa&nea of a non-naectiable note to promptly rotlfJr the maker of such trsoafar. It 18 even held that a transf 6r, a%veas ber.waenthe pays8 and the lndorsae, la not cmpleta until such notice ws given

. . .* *

. . .

“By a **strong** iicpllcation article 

### 309, supra, euthorIzee the obllgor In a non-na&otlable contract to raoognlzs the oblleea aa ths owner of the pro;trt;l until notified of its aasigrlmsnt.” It la therefore the opinion of thla dapartaant th+t under be holdiwa of the above quoted casea and Artlols 569, If notice f an’askl@mnt or transfer Is brought to the attention of the tste spent whose duty it 1s to deliver the werrmt, than eel4 t&a egent Is bound thereby end mat pay the r!arrant to the 

### 8SIgtU!J@J.

In this respact you are edvlaod. hl:wevcr, thet when 

### otlcs of an asalgnment la 

### pr6%6ntsdto the yayin;: want, whlhh gzlgnmnt shows on ita face to be nnaanignment of unecrnad aalr, or ra:zas 

### 0r a public official, the ~-oyIc~ a6‘ent mat consider uch

### asalpment wavoi!l, and my not r:sy the saws to the asei@me. s pointed out by the Court cf Civil Ap?,ealo cf Texas in the case f s1111e v. Yaatharforcl Co,5praea Co., 

### $16s.-.472, pnymsnt to an g~lgnee unc?arBVOIDae~Ie,namat Is no pqment, and the fess are till oacollected fees cf cftlca so far as the eaployoa la concerned. gwevar, where the laatrusent rcrcltae ttnt the wor:~ant or check 1s usthe azployee and there Is nothing lndlcqtlpl”, the sameas being or unanrnsd salary, tba as-lgnment wuld have to be recognized ithln the ll~ltatlon of .irticla 

### 6165~3-6, suym.Eoaorabla TornC. Xl~8, pita 16

“7. Xunt a warrant rroeivrd by a wwrant companyunder such en nafilgnmant be an

### domed by the payea or by some one leeally authorizad to endorna the ama for h1.mbafora tha State Treasurer is authorized to pay the aa%eto the holder thereof?

“8. If 80, is the form hereinabove set out aufrlclsnt 80 aa to authorlza TheJohn DoaCompanyto endorse a warrant received by thra by virtue 

### of **an** aaslgnmant with thnt fora?

“9. If this form authorleas’ thin oompany to endorse such rerrants for tha payaes tharaof, which of the following steps should be taken by 

### ThsJohn Doa Companybefore t?;a Weta **Treasurer** la authorized to pay warrants praaantrd to him aa Stnta Trees-r by The John Doa CompanyIf the mamaof the payaa of auoh wsrrenta has bean sndoraad 

### upon the mm by The John Doa Cospany: *(a) Marsly present such warranta for papant? -(a) File erlodIoally a sworn statoment that they lp

ThaJohn Dca Company) have written authorlzatlon for all warrants yra- +aantad within thnt period to endorse the paj+as’s namethereto?

“(0) keooap~ny aaoh warrant presentad for payment with a sworn atatament that The John Doacompany is authorized to endorse the r;ayea’a nxde thereto? -(d) Accozipany each warrant Fresentad for payment with the orie,inal/or a carbon copy of the f;r.n heretofore set 

### out ale.nad by the payee of such warrant?” In these three **quaetions you**  **are** concerned with the typa of information tha Ststa Treaeurer should raquira before he rays a at!ita \%arrontto anyone **but** tha payaa therein. There can ba no question but that when**Honorable** TOEC. zing, i:aca 17

an assigcae nsrely presents the **warrant** to the State Treaeurar without any other evidence that the sem he8 been properly eaiignea to him, the State **Treasurer** would be unauthorized to makepaymmt on the warrant 

### to the 

### assl(;nea. This we8 the holding of the oourt in the cam of Attoyeo **River** Lllaber Co. v. Fayos, 122! S. ‘s?.278. In aLscueelng non-negotiable instrumsnte the **oourt** stated **as** follows:

n

. The cheeks In question having none of ths'&mtial quellties of 

### a negotiable lnetrumnt payable to bearer, the ners 

### --T-=- session of then by the app8llae re 

### 44tlno pmsumution that she ia entitled to the rlzhts of iha~pemon to whomthey 

### wore issued.-The evldenoe failed to show that appellee had **ao** 

### qufr4a the right 

### anatitle 0r the original **OvJner**

### 0r said cheeks, and therefore rells to show that she was entitled to rscomr thereon.

. . .* (Gc@arecorln~ ours) The 3iprs33 Court 

### or Teree In the teas of Cragg v. Johnson, 37Tex. 558, lc apeaklcg or **a** non-negotiable lnatrunett, said **as** tollows:

".

. . A;GsreI transfer by delivery xl11 not enable ths holder to rscover, without avsrrimnt end proof of such bone fide owner- .ship.

. . ." Eowavsr, if tha warrent is endorsed by the peyse ii~a~~~ataiv4reato the werrant oo~tpany, suoh endoreezent and dollvery would ba sutriclent to transfer said warrant. **Your** attention Is oelled to the feet that Ytate warrants read "my to the order or ." Ronorable 

### Scott Coinerr In the opinion prsviouely wfroa, stated as 

### r0ii0we: ".

. . but the title to suoh weri.ent aay ba transferred by erdorxmmt and deliv??ry,

. l .*$n other v:oras stats warrants are not negotiable instrumnto further than that title **zay** bs transferred by endor;erent **and** delivery."
In the cam of City of Belton v. ilerrie Trust end Savings &ink, 273 i. ":. 614, the court steted as 

### r0ilows:"That 

### zunlolpsl warrasts are not r.c~stisblo

lnstruxente withPc the law mrchnnt, Suxtbsr thah that title nry be trennforred by-%?%%- i-ent ar.ddeliver , is well settled." YhsY.acoCcu:t of Clvll Apceols in the oam OS 

### .:.00aV. Yparks, 4%7:. 1,:. 

### (~a) 142, stated 60r0ii0wa:

mEow4v4r, the rimrefeOt tlxt the instruzeht waononnegotiable In the eense that a purchavsr of nrsgotlable popes whobuys ror a val**uable** ooheideretlon eith,sut notloe, takes the earn **free** OSequities In ravor o?‘ the a&or, does not Atigste against a8 assignmht OSthe obll~stlon evidmoed thereby by lndoreaztvnt and delivery of the lnstrumnt. .hethsr it be denoi&mtad a tote or not, it was the prlzary obllgi\tlan to pay midwas the svldenoe oS the **debt.** The fact tht it was **trade payable**  to ,‘

. T. ‘$a!iss

or order, evldenoes the Intention of the parties that title thereto should pass by Lndorsament and delivery of **the** Instrument, end such was th;! effect thereof.

. . .n St is th% opli;ion of t&a dapartxmt,thereSore, that 

### while e rtate warrant is, not Enegotiable lnstruzcnt, the sasx nay bo transferred by ecdwearent bnfi delivery.

xc anf3w0sto your q,uf?etloz nu3her 8, Vu?3 ere unable to see any r6ason whythe fo,rmwhich you include in your letter xould not bo aufficlsnt to authorize the ;ohn ;;tje Co~~angto endoree a varrant racaived by themby virtue 

### or ec 

### a;aigm.snt.

In your question nutiber Byou ar? concerzed viith the authsrity of tLa Treaaurar ta rnw!;rzim on endarseamt isae hy a warrant cooprng In thmnaze of the cajree under tte authority of the previously dincussjcd dower OSattxuey. There can to EOquestion but that whenthe Treasurer ~227s e warrant endorsed in tbls manner he Eoes so at h:s porll. Aupointed out by the court In the ease OS";fll.lo v. tatheriord col;pr0ss co. ‘ 66 i.. i;. 472, pnyE.0ctto &xlas**ei;oee mdga**  **void** nsskoz.?;ont IG no payzx~~tat all. ~hsreSore, the T~~esurer should require ouuh iniorzutlon conoerniog the nuthority to endorse pey(~s~3nfU?ie on IYWrrsnt 88he seeie will proteot 

### him3eli. There o!in bc no qusnt:on **but** that **the m~l;od**  **yoti s&Jsest**  **in nwher**  **9** (d) **-** that of **acompnyiu&** each warrant with t!lo oriLxinal or a co~,y of the authorization - **r..c~.Q.d be**  the **rret,hoc¶** Chnt **would**Honorable Ton C. King, psge 19

beat groteot the Treasurer. Eow*var, any of the Eethode you suggeet w(xll%be rrufficlant 1P in iact authority for the *a%ors*&ent hd baen given by the pay**. The.problem which ttil8 question prosento is one of proof in ca8* of a conteet arising over a .ptxrtlcular warrant and not a problem of authority of the Treasurer,

"10. If the fan: heretoSore 64t out is not sufrloisnt to authorize the John CO* Coqmp to endorm upon a atnte u-arrant the m&e of the payee, what steps would have to be t&en by that aonipanyberore the S,t.ate Treasurer would be autt.orizedto pay the sanie to The John:Co%Company? ::oul.d The ,JohnEoe Con;panyhava to file with each state warrant upon presontsect **ror** payrkent, a 2ower of attortxy to endorse the ntir;e ot the payee upon the a&e?- This departnsnt is unable to find any reason whythe enclOSe% authorization would not be auftlclent to authorize the John Poe Colr;panpto enborae the state warrant in the n-6 of the payee. Theenfforsement fe part of the written assignment plan and as ha* Seen previouuly stated, ouoh aoslgnJn%nt Goeo not have to be aoknowladged or be und*r oath.

"11. If your answer to question ntmber five ie In the negative, is there.any statutory or constitutional prohibition whioh V?OUl% prevent the Stat8 Tr*a8UMr irOnirequiring a power of attorney to be tiled and by so doing keep an acoouot/or record shoaing that the st.at% ha8 discharge% it8 obligation to the payee of such state warrant? "12. Cr 1s there any statutory or Constitutional provision reqolrlng the State Treasurer to keep aooounte/or records ehowing that the state bee dlsoharged lte obllgatlon to the payee on a state warrant?" A8 prwiously pointed out in this opinion, Artiole 4382 requires that the state Treasurer register each warrant isher the saw is .pld in a wwarraaCpaid reglater" and Paid register is to 8hW the numberan%amOUntof eaid warant. This is the **record** that tha l%glaLature has pro-lded for acd whloh shows that the stqte hes dl8oharged its o?J.igation on a partioular warrsnt. %iowever,there is nothing in Article 43e2 or in any other 8tatute or Inthe Constltutton r:h:ch mwld prohibit the Ztote Treasurer

from keeping a record Ehowin g to whoma particular warrant wed >ald, nlthcu&h, OSpreviously pointed **out, the**  **sam%** is fret rec;uired under Article i,JP2. In line with what bee bean previcuslp stated, the State Treaeurer would heve to reco~nlze 

### ar. er:sQpmat 

### of a state 

### pp varrant rer.srdless of the fact that t::e ssaignee did 

### not fwnisb the Stcta Tre~surcr with the power of attorney eigne4 by the 

### payae. There onn be no question 

### but t!mt un3sr the decieions in this atate, end **under** Article 

### 569, such a written ttseiezwnt aa is enolosed in your lettor aonld be auT?fcieat to aiwlgn ~oallblp a payee’s interest in a state pay warrent, an4 ouch nsalgnment wuld have to be recognized by the State 

### Troesuror when the sma Is presented to hi3 =ith proper and sufriclent evidence of tke tmnefcr.

“13. If a0 statute nr 00nstltutlnnal ~rovislon rreocribes the .zanner xhereby e ~ovexnmental ,Functlon ie to be performed 2nd no 9ti:tut.s or constitutional provisicn 3rohibit.e t?x use of the most eff~iclant ,-ndbusiness llks manner, shrul4n’t that mtthnd :f performInS such function be **used** so OSto best protect tho lntereot of the etate::!* Cndoubtedlg yaw Guestlo:: numbr,r13muatbe azsvemd in ths cffiraative. ikcqavrr, 05 to Just what in t_?emost efficient and bmlnes3-lika msnn<:rof p:ar- ? fcminp, 3 ~ertixulnr funation~io c ~u63tioc which in this csae wuld rest within tha dlecrotion of the 5t”:f **3h,oi?Ur6r 80**  **long 05**  **!:s Octs**  within the wlea on9 lfaitatlone set 6ownby the Legislature In the articlea dlncuhsed ~rsvioualg in this opinion.

“14. !:ould the Stste Treasurer wx3 the sureties upon his official **bond bo**  lloble to t.!w etete if payment was z%de\~fwerrsnte proasnted for payment where e sworn stateasnt vraetiled **by** the pr8sent:ng parson or corporetion that ttia rrcsontlng pareon had **been** nutborlzad to endorse thereon the naac. of the pzyse, if In fsct no such authorizatlc;n existed?”"15. i'OUld the per823 63 :xcocsGin~z tbC rarront for oayzmntunder siich a evxx e\eSewr?t **b6** legally liabla to the st?t~:'~
Tne answertoyour **que5tlom** a8 to tba liabilitgof :he :'tate

Tre.esurer

end theye:'son

cr+.emtlne therorrontmi@S depend in each lns?t%rre on tbaracts or thepUrtlCUi%rCGSO, sadwe preiernot toatte-tpt to lay down a eencral rule of 1%~ basedoo a hypo:hetic%l puastlonunder th*se circunstanotn.



### “16. Ifyoura.nsw.:r to question Five 16 in t+ho

ne@ativo, **and** your nnsw%r% to questlonFourteen %nd Plftcen ara in the affixatlve, Uoen the ioct that a public offioia1 

### anahis ouretlen 1~1111. be 1~~.8llg !fableGG the st.at% for auohpublfc ofPicl%l~% non-fonsascaornlaPeas%nce inthe prformnca ofR #overumntsl functionor that scmebeok or corporatlbnor perecnHill be l%R"lly llaS1e to the aiate forbreach of swarracty or for zisrepresentstlcns, juatifp lnefiXciant~35 unhueinaoe-likajxrtormncs Gl a ~ovnrnnextel functionwhen sn efPicient andhu~insss-like mnnsr of pzrfoxxi~p, ouch E?vcr:im%cL%lfwiction is n:)t p?ohlbited by etztute cr comtitotion?" ;iven if ?2;e .?tateTreosbrcror scrle5:z2kinc~ c3ccem :cre~-:Sconolly

linbie in 8 prtlool.~~ case, Chi%aouldby

. :o%.<iRmY

JustffytheLteta Trfasurer's n.+t**cc:s>!l.vln~ dth**  ;be,Jewna to the tyT;e ~4 warrant roz.-rintcr% ho is tokaep. .%ersCRP,

be no qoe~tfocbut thatthe Ctste Trcsaurcrshould 

### iaherestrictly to Cbcrule%CJf %‘I?& ::soyln$~cf verxant Qigisters ~.8set out,bythe ~~~gi~i~t~~r~, and6130ch0ula :dapjt suchrula6 **as** i2ethinkSnscess~ry to st?tiEly hiwnelf Aat a rsli6sssim-mmt or trensl‘erof%n e3oloyee'sany ;srrenthe%been aade before he Fiiker p%y%i%nten such% asrrantto c.%e

not tbcFoyee therein.
"17. If ttie

State Tmxxwrer s~:ould !:6ec nc record ahcwing, tlis t the Ot2t-e

has fuI?llleditsotILT%ticn to theTease of c 7xrror.t

and dot?%

not xguire persons rr,%antlrq>

u;arr:lnt%

ubich Mse ?.ot

been eodcrsedby ther;syee under %% %s!signm+nt to prssentneparoteand actual uutborizatlcn t? endo: the sainain tha naas ofiAspay6a, isn’t tlif! CteteTreszu:?r in effect mklng such person a pcg111~ a-Tentfsr the st:~te’i **If 80,**  can **he** lcrollydo thls’~‘~
Under the eituotiosyoueecume i.nquggtlonnumber 17, the 5tat.e

Treasurer is notmski~: sucha parson asyou describea ~ayin& s::entfor the state,becmms suoh payment by the StateTreesurer is for thepurpose cf Cischarglng the s:ate*a liabilityon tAti warrant. Thepeyzient by the state ‘Yensurer is to the lndlviduslas asslgnsc~ or transfsrer of the peyea, nnd not to hi.?l OS DDagent to make pepent to the payas on thexarrsnt. The payment by the StateTreasurer ie for the purpose of 3tschnrging tha stata’s liabilityunder themrrant inall cases, and it couldnot be sei,dthen t&t thsStrcto Trcscsure=wes aaklw$ a paying eg&?toutof thepo:con towhen he saya theWarrant.

:l’e trust thet thsnbove discusaim ofthe

in your lettar~111.sotiaractorily qu66tions fropounastd ansnaryour Inquiry.