The opinion
THE ATTORNEY GENERAL
OFTEXAS
AUSTIN II. Texan
December 16, 1959
Mr. E. B. Camlade Opinion No. ~-758
Chief Aocountant
Texas State Parks Board Re: Authority of the State
Austin, Texas Parks Board to withdraw
shares of stock from
the Varner-Hogg State
Park Trust Account No.
941 for the purpose of
Dear Mr. Csmiade: sale or trade.
Your request for an opinion reads as follows:
“Enolosed is a photocopy of a letter dated
December 19, 1958 from Alice N. Hanszen to the
State Parks Board concerning the gift or a
stock certifioate evidencing 1,425 shares of
Fifteen Oil Company Stock.
“Based on Attorney ffeneral Opinion number
WW-122 the State Parks Board aooepted said
stock. The stook was deposlted with the State
Treasury In Varner-Hogg State Park Trust
Aacount number 941, an aocount that was oreated
for another stook donation (the stook donation
refersed to in said oplnlon number W-122).
The reason for using the came Trust Acaount was
beoauss of the eimilarity of the u8e for which
the two separate donations vrere made--operation
and malntenanoe of Varnsr-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 of the
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 * Does the State Parks Board have the
authority to withdraw said 1,425
shares from said Varner-Hog State
Park Truat Aocount number 9 f:1 for the
Mr. E. B. Camiade, Page 2 (Opinion No. ~-758)
purpose of sale and then redeposit
with the State Treasury the funds ac-
quired 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 main-
taining a system of public parks.
The donor’s transmittal letter accompanying this
gift of stock contained the following language:
“It is my intention and desire in making
this gift of the shares evidenced by said cer-
tificate, 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
and upkeep of what has formerly been known as
the Varner Plantation House and the premises on
which the same is situated and which is now
known as the Varner-Hogg State Park, near the
Town of 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; there-
fore 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 securi-
ties. The rule is that “A mere exchange of property is not
a valid exercise of the power to sell. . . .” (Corpus Juris
Secundum, Vol. 84, Sec. 288 (f), p. 482.) Again, "A trustee
has no power to invest trust funds unless such power has
Mr. E. B. Camiade, Page 3 (Opinion NO. ~~-758)
been expressly or impliedly conferred on him; and power to
reinvest will not be inferred mere1 from a power to sell."
(Tex.Jur., Vol. 42, Sec. 98, p. 7137
A trustee's investment power must depend solely upon
the settler's intentions, as determinable from the trust in-
strument. (C.J.S., vol. 84, Sec. 325, p. 521.) The instru-
ment here involved is silent as to any power other than the
power to sell. The terms of the trust instrument do not
empower the State Parks Board to reinvest proceeds from the
sale of the stock in question. Furthermore, without specific
statutory authority the Board has no general authority to
invest its funds. (See A.G. Opinion No. WW-725, November 16,
1959.) We therefore answer your second question "no."
SUMMARY
The State Parks Board has the author-
ity 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,
WILL WILSON
Attorney General
JRI:bct
APPROVED:
OPINION COMMITTEE:
W. V. Geppert, Chairman
J. Arthur Sandlln
L. P. Lollar
Phocion S. Park, III
Tom I. McFarling
REVIEWEDFOR THE ATTORNEYGENERAL
By: Leonard Passmore