### 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 ofthe State Parks Board to withdraw shares of stock from 

### the Varner-Hogg State Park Trust Account No. 941for the purpose of sale 

### or trade. Austin, Texas



### Dear Mr. Csmiade:

Yourrequest for anopinion



### “Enolosed is aphotocopy of aletter dated December 19, 1958from Alice N.Hanszen to the reads as follows:

State Parks Board concerning the gift or a stock certifioate evidencing 1,425shares of Fifteen Oil Company

### Stock.

“Based on Attorney 

### ffeneral Opinion number WW-122the State Parks Board aooepted said stock. The stook wasdeposlted with the State Treasury In Varner-Hogg State Park Trust Aacount number 941, an aocount that wasoreated for another stook donation (the stook donation 

### refersed to in said oplnlon numberW-122). 

### The reason 

### for using the cameTrust Acaount was 

### beoauss of 

### the eimilarity of 

### the u8e for which the 

### two separate donations vreremade--operation and

### malntenanoe ofVarnsr-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 ofthe 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* Doesthe State Parks Board have the authority to withdraw said 1,425 shares from 

### said Varner-Hog State Park Truat Aocount number 9f:1for theMr. E. B. Camiade, Page 2 (Opinion No. 

### ~-758)

purpose of sale andthen 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 myintention 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 andupkeep of what has formerly been knownas the Varner Plantation House and the premises on which the sameis situated andwhich is now known as the Varner-Hogg State Park, near the Townof 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 “Amere exchange of property is not avalid exercise of the power to sell.

. . .” (Corpus Juris Secundum, Vol. 

### 84,Sec. 288 (f), p. 482.) Again, "A trustee has nopower to invest trust funds unless such power hasMr. E. B. Camiade, Page 

### 3 (Opinion NO.

### ~~-758)

been expressly or impliedly conferred onhim; andpower to reinvest will not be inferred mere1 from apower to sell." (Tex.Jur., Vol. 

### 42,Sec. 98, p. 

### 713 7 Atrustee'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 donot empower the State Parks Board to reinvest proceeds from the sale of the stock in question. Furthermore, without specific statutory authority the Board has nogeneral authority to invest its funds. (See A.G. Opinion No. WW-725, November 

### 16, 1959.) Wetherefore 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, WILLWILSON Attorney General

JRI:bct APPROVED: OPINIONCOMMITTEE: W.V. Geppert, Chairman J. Arthur Sandlln L. P. Lollar Phocion S. Park, III TomI. McFarling REVIEWED

FORTHEATTORNEY GENERAL By: Leonard Passmore