uai Ausrnk 1.1. - .' .-----------xxxx ,: ,

Hon..Wllllam J. Lawson Secretary of State Austin, Texas Attention: Mr. C...P.Sanders Qpinion..No.

0-4~22

. ,.Re: Investments for funds of - I perpetual care cemeteries.
pear Sir:

~. -Your~~re~uest.for.oplnlon has been recelved.and. ca&zfufuliy'c.on&ldered.by this department. 'We quote from your request as-,foilows:.

. ..“Th~~..De'partment 1s in receipt of an lnaulry Vegardlng the ellglbllity of the sinking fund bonds issued by the Sablne oyaity.Corporatlon ,~a:~an.

.~ve,atment~.,of

the fun 8 of:.the

perpetual,care cemeterieswhich a.re required tom ,., fl.ie:~aniu~aI

reports wlth,the office o.f,the ~.,.~'eb&$~a~,:

of: State. .., ;:

?We:w&iId appreciate v&y much having the bene~flt

of, your oplnlon'as to the legality of :-these*

bonds as:aninvestment by a perpetual. : care ce~@tery,'andwe~.~are encloslng~

our-file. . wlth'reference to this matter for your study.~, ~Pleasereturn this file to u8 after your'department has flnls.hed.wltb It. :. '.-wIf 'youdesire any~furtherln'formatlon regarding the nature of this corporation, 'please let us.know and we will be gl.adto..sup- .'ply,ypu

with such Information as we:.haveavail- ._~able !'

. : . . . " :_

. ~Artlcle926, Verrqonis.Annotated'Texas Civil Statutes, .provldesfor the investment of funds of perpetual .c,pecemeteries. The.article provides:

1. .. _

Ron..Wllliam J. Lawson, page 2 - (O-4522)

"Perpetual care funds shall not be used for any other purpose than to provide through + *theincome only therearom the perpetual!-care‘!:- stipulated In the resolution, by-law or other action or instrument by which the fundwas created.or established, and it shall be the duty of the board of directors -ofthe association in charge thereof, and Its duly appointed trus-
. . . tee to Invest, reinvest and keep such fulids In- .- .vestedin bon'ds.of.'the United-States or the State " of Texas or of any c,~unty,clty;or other polltlcal subdlvlsion,of~.the~%a'te~.of~Texas, or In first mor?tga'g!es

or on'imfirovea

real estate, or in - bonds:legal'for ihvestment: for savings banks, or trust companies lnthls State." .:.. ': '.Artllcles.

416, 1187a-9, 842 and 1269k-1,V.A.C.S.; provldes,.f&.

the:e:-l~ves.tment

.bf: ,thefunds.'& .Gavlngs. banks. :of this Stat&- ..The

artlc~es:ar~..rat~~:~engt.hyi:~na will:not-'.be:.- quoted here, but it will suffice to say.he.&:'.that the"~bonds'.

i of the Sabine Royalty Company will not qualify ati bond% in-. ~~. vestments for::sav.lngs' .banksof,

$h+s Stzit+.under

:any' of'said artIclesa .: '. ;' .. . ; .:_.. .i :" :: :::_:_".

ii. i ...:: ,,: ,,. .: :. : : ~.: ~: : A%WQ& 4986;'Veinon% .AtiiBtated~Texa@ Civil St$&utes, provides that"the~~avis.'gov~~lng bank@:'and.ba$clhg corp&at+ns shall.apply to trust cotipafiltis wIie&.tio%

inhonslstentwlth"tKe statutes relative to trust companies. 'Art&& ,589Ob; Vernon's AnnbtBtBd Texas Clvll'Statuteti, authorizes trust companies, %i?+relT-'.as

&any-other corporiitlcins‘lahd' liddie's poli~lc) to lnvest their finds'~iri'Natidnal Gu.tird~&%diy'Bonds~i .lir?t!&9ie 511;Vernon's-:Arinbtated Texas.C%viZ Stat&e-s, pro&desYthat the type and.'k<& of bondt3“ihich::banks and bank and trust companies.of-tMs.Sta;t& ini?ilivi+st'ln

,areas folloW3:

..~ "Public bonds'of'the,<ed'States'or of thls'state or lfithe bonds of 'anyIncorporated city, county or Independent school district-.in-:thlB'.~State,?

'Aftera'careful analysfa of.the..:.abov&.ref&rtidtostatutes, It is otir+p$nlon that~the sinking fund +d8'-of Sablne RoyaltyZorporatlon are not eligible as 'anInvestment .'~Honorable William J. Lawson, page 3 - (O-4522)

for the funds of perpetual care cemeteries under Article ‘926, V.A.C.S., and other pertinent statutes.

Pursuant to your requestwe are returning herewith your file In the matter.

Very truly yours
ATTORNEYGEWERAL OFTEXAS

.~ .

APPROVED May.19; 1942
Gerald C. Mann Attorney.General'of Texas Approved Opinion Committee By BWB, Chairman
~WJF:.AMM~

bt

:. By s/Wm. J. Fanning ~Wm. J.,Fannlng Assistant