THE ATTORNEY GENERAL 

OFTEXAS 

AUSTIN II. Texan 

December 16, 1959 

Mr. E. B. Camlade 

Chief Aocountant 

Texas State Parks Board 

Opinion No. ~-758 

Re: Authority of the State 

Parks Board to withdraw 

shares of stock from 

the Varner-Hogg State 

Park Trust Account No. 

941 for the purpose of 

sale or trade. 

Austin, Texas 

Dear Mr. Csmiade: 

Your request for an opinion 

“Enolosed is a photocopy of a letter dated 

December 19, 1958 from Alice N. Hanszen to the 

reads as follows: 

State Parks Board concerning the gift or a 

stock certifioate evidencing 1,425 shares of 

Fifteen Oil Company Stock. 

“Based on Attorney ffeneral Opinion number 

WW-122 the State Parks Board aooepted said 

stock. The stook was deposlted with the State 

Treasury In Varner-Hogg State Park Trust 

Aacount number 941, an aocount that was oreated 

for another stook donation (the stook donation 

refersed to in said oplnlon number W-122). 

The reason for using the came Trust Acaount was 

beoauss of the eimilarity of the u8e for which 

the two separate donations vrere made--operation 

and malntenanoe of Varnsr-Hogg State Park. 

“However, the donors are different parties 

and the latter oovering the gift of the Fi.ftron 

Qll Company Stoak provides for the use of the 

proaaadr from tho sale of said shares as wo%L 

as any lnoome r@aLbe’i therefrom, 

“Your opinion is rsnpsotfully requested on 

the f&llowlng queetlons: 

” 1 * Does the State Parks Board have the 

authority to withdraw said 1,425 

shares from said Varner-Hog State 

Park Truat Aocount number 9 f: 1 for the 
Mr. E. B. Camiade, Page 2 (Opinion No. ~-758) 

purpose of sale and then redeposit 

with the State Treasury the funds acquired from the sale thereof; 

“2. Does the State Parks Board have the 

authority to withdraw said 1,425 

shares from said Varner-Hogg State 

Park Trust Account number 941 for the 

purpose of trade or exchange for other 

stock and then redeposit with the 

State Treasury the stock acquired 

under the trade transaction?” 

Opinion No. WW-122, referred to in y-cur letter, 

concluded that the State Parks Board has implied power to 

accept gifts of personal property for the purpose of maintaining a system of public parks. 

The donor’s transmittal letter accompanying this 

gift of stock contained the following language: 

“It is my intention and desire in making 

this gift of the shares evidenced by said certificate, that you use the proceeds from the 

sale of said shares, as well as any income 

realized therefrom, for current expenses and 

costs incurred in the operation, maintenance 

and upkeep of what has formerly been known as 

the Varner Plantation House and the premises on 

which the same is situated and which is now 

known as the Varner-Hogg State Park, near the 

Town of West Columbia, in Brazoria County, Texas.” 

The Parks Board here occupies the position of a 

trustee, and as such is subject to rules of law governing 

trustees generally. 

The quoted portion of the settler’s letter shows 

that a sale of these shares by the Board was contemplated 

with approval. This language is sufficient authorization 

for the sale of the donated shares by the trustee; therefore your first question is answered “yes.” 

However, it does not follow that the Board also has 

the power to trade or exchange the stock for other securities. The rule is that “A mere exchange of property is not 

a valid exercise of the power to sell. . . .” (Corpus Juris 

Secundum, Vol. 84, Sec. 288 (f), p. 482.) Again, "A trustee 

has no power to invest trust funds unless such power has 
Mr. E. B. Camiade, Page 3 (Opinion NO. ~~-758) 

been expressly or impliedly conferred on him; and power to 

reinvest will not be inferred mere1 from a power to sell." 

(Tex.Jur., Vol. 42, Sec. 98, p. 713 7 

A trustee's investment power must depend solely upon 

the settler's intentions, as determinable from the trust instrument. (C.J.S., vol. 84, Sec. 325, p. 521.) The instrument here involved is silent as to any power other than the 

power to sell. The terms of the trust instrument do not 

empower the State Parks Board to reinvest proceeds from the 

sale of the stock in question. Furthermore, without specific 

statutory authority the Board has no general authority to 

invest its funds. (See A.G. Opinion No. WW-725, November 16, 

1959.) We therefore answer your second question "no." 

SUMMARY 

The State Parks Board has the authority to withdraw 1,425 shares of donated 

stock from the Varner-Hogg State Park 

Trust Account No. 941 and sell the shares, 

redepositing the proceeds from such sale 

in that account. The Board does not have 

the authority to trade or exchange these 

shares for other stock. 

Very truly yours, 

WILL WILSON 

Attorney General 

JRI:bct 

APPROVED: 

OPINION COMMITTEE: 

W. V. Geppert, Chairman 

J. Arthur Sandlln 

L. P. Lollar 

Phocion S. Park, III 

Tom I. McFarling 

REVIEWED FOR THE ATTORNEY GENERAL 

By: Leonard Passmore