THEAITORNEY GENERAL OF TEXAS
HonorableH. A. Hodges County Auditor,WillMmson County Ge&+mm, Texas
Dear Sir: : 0pinion,No.O-7087 Re: If?municipalbonds held by the County Iilprovements Fund, are sold, may the premium from such bond8 be lnve8tedin U. S. GovernmentBonds?
We acknowledgere&pt of yc$ opinionrequest of recent date, end quote from letter,(18follows:
'IThiaCounty'8PermanentSchool Fund ownm quite a lot of Municipal Bon&a for which an offer of rreieral hundred dollerr premiumhas be-. made, if the rale lr made the principaland the premium~111 be invertedlz'b. 5. GovernmentBon&, by the Invertingof the premirrm In bonda there will be good findnclalgein over the maturity of the bon& rold. . "An the law directa the interertand leare money, except oil anu.. mineral leaae6,be trsnnferredto the State and County Available School Fund for appor:~kkmmnn~-to the various Conrmonand Independent School Diatricteon a'per capita rcholsrtlc berir it bar occurredto me that premlunuon bonda may be held a8 Interest, if 110the law would not permit the une of the premium to purchaseadditionalbon&.
"Kindly give me an opinionrtatingwhether or not the Commidlionere' Court would be authorizedunder the law to Invest the premium of bOnda mold in the purchaseof bonda for the use and benefit of the County PermanentSchool Fund?"
The Attorney General'8officeheld in OpinionNumber O-823, copy of which is enclosed,that profit derivedfrom purchase,sale, and reinvestmentof the cash in the PermanentSchoolFund of a county should become-a part of the AvailableFund (citingArt. 7, Section 6,Constitutionof Texas).
In line with that opinion,we believe that the premium receivedfrom the sale of bonds held by the PermanentSchool Fund becomes a part of the AvailableFund. Hon. H. A. Hodgee - Pege 2 (O-7087)
You are advieed,therefore,that the Commieeionere' Court would not'be authorizedunder the law to Invest the premiumfrom bonde aold in the purcheeeof bonds for the use and bei$efitof the County PermanentSchool Fund.
Very truly youre,
ATTORNEX-oFTExAs
a/ Claud 0. Boothmen
By Claud 0. Boothman Assistant COB: v/ldw
Enclosure 1
APPROVEDFEB. 23, 1946 CARLas c .~'TCSHIEY FIRST ASSISTANT A!lTORNEYGENEBAL
APPROVED OPINIONCOMMITTEE By B. W. B. CHAIRMAN