Court Opinion

ID: 4141820
Source: CourtListenerOpinion
Date Created: 2017-02-18 03:14:59.310281+00
Date Added: 2024-06-11T14:37:33.416589
License: Public Domain

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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 ln-
     aulry Vegardlng the ellglbllity of the sinking
     fund bonds issued by the Sablne oyaity.Corpora-
     tlon ,~a:~an.
                 .~ve,atment~.,of
                               the fun 8 of:.theper-
     petual,care cemeteries which a.rerequired 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~fltof,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'de-
      partment has flnls.hed.wltbIt.      :.

               '.-wIf
                    'you desire any~furtherln'forma-
      tlon regarding the nature of this corporation,
     'please let us.know and we will be gl.adto..sup-
    .'ply,ypuwith such Information as we:.haveavail-
  ._~ able.!'               :    .    .. .      " :_

               ~Artlcle 926, Verrqonis.Annotated'TexasCivil
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 cre-
     ated.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 fulidsIn-               .-
     .vested in bon'ds.of.'theUnited-States or the State           "
     of Texas or of any c,~unty,clty;or other polltl-
     cal subdlvlsion,of~.the~%a'te~.of~Texas,     or In
     first mor?tga'g!esor on'imfiroveareal 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&- ..Theartlc~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 atibond% in-. ~~.
vestments for::sav.lngs'.banksof,$h+s Stzit+.under      :any'of'said
artIclesa      .:   '.;' .: _..
                              .i :" :: :::_:_". i........::
                                              ii.         ; ,,.
                                                         ,,:  .: :.
            : :~.:                           ~:               :
           A%WQ&   4986;'Veinon% .AtiiBtated~Texa@       Civil St$&utes,
provides that"the~~avis.'gov~~lngbank@:'and.ba$clhgcorp&at+ns
shall.apply to trust cotipafiltis wIie&.tio%inhonslstent wlth"tKe
statutes relative to trust companies. 'Art&& ,589Ob;Vernon's
AnnbtBtBd Texas Clvll'Statuteti,authorizes trust companies,
%i?+relT-'.as
            &any-other corporiitlcins‘lahd'liddie's   poli~lc) to ln-
vest their finds'~iri'Natidnal Gu.tird~&%diy'Bonds~i.lir?t!&9ie
511;Vernon's-:ArinbtatedTexas.C%viZ Stat&e-s, pro&desYthat
the type and.'k<& of bondt3“ihich::banks   and bank and trust
companies .of-tMs. Sta;t&ini? ilivi+st'ln ,are as folloW3:   ..~
           "Public bonds'of'the,&lted'States'or of thls'state
or lfithe bonds of 'any Incorporated city, county or Independent
school district-.in-:thlB'.~State,?
          'After a'careful analysfa of. the..:.abov&.ref&rtid
                                                          to-
statutes, It is otir+p$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
                                              .~        .

                                   By s/Wm. J. Fanning
                                       ~Wm. J.,Fannlng
                                             Assistant
APPROVED May.19; 1942

Gerald C. Mann
Attorney.General'of Texas
Approved Opinion Committee
By BWB, Chairman
~WJF:.AMM~
        bt

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