uai 

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

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 cemeteries which 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,'and we~.~are encloslng~ our-file. . 

wlth'reference to this matter for your study.~, 

~Please return this file to u8 after your'department has flnls.hed.wltb It. :. 

'.-wIf 'you desire any~ furtherln'formatlon regarding the nature of this corporation, 

'please let us.know and we will be gl.ad to..sup- 

.'ply,ypu with such Information as we:.have avail- 

._~ able . !' : . . 

. . " :_ 

~Artlcle 926, Verrqonis.Annotated'Texas Civil 

Statutes, .provldes for the investment of funds of perpetual 

.c,pe cemeteries. 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 

+ *the income only therearom the perpetual!-care‘!:- 

stipulated In the resolution, by-law or other 

action or instrument by which the fund was created.or established, and it shall be the duty 

of the board of directors -of the association 

in charge thereof, and Its duly appointed trus- . . . 

tee to Invest, reinvest and keep such fulids In- .- 

.vested in 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: ,the funds.'& .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' .banks of, $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% inhonslstent wlth"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 ,are as folloW3: ..~ 

"Public bonds'of'the,<ed'States'or of thls'state 

or lfi the bonds of 'any Incorporated city, county or Independent 

school district-.in-:thlB'.~State,? 

'After a' careful analysfa of. the..:.abov&.ref&rtid tostatutes, It is otir+p$nlon that~the sinking fund +d8'-of 

Sablne RoyaltyZorporatlon are not eligible as 'an Investment 

.'~ 
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 request we 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