AGO 1949-51 No. 191.

• Case Date: January 09, 1950
• Court: Washington

Washington Attorney General Opinions 1950. AGO 1949-51 No. 191. January 9, 1950[Orig. Op. Page 1]PRIVATEVETERANS' BONUS BONDS - INVESTMENT OF STATE FUNDS.Any funds of the state other than the permanent school fund may be invested in veterans' bonus bonds issued under chapter 180, Laws of 1949.State Finance Committee Legislative Building Olympia, WashingtonCite as: AGO 1949-51 No. 191Attention: Mr. Ernest Minor, Secretary Gentlemen: Receipt is acknowledged of your letter of January 4, 1950 in which you inquire as to whether bonds issued under chapter 180, Laws of 1949 (World War II Veterans' Bonus Law) are legal investments for funds of the state other than the permanent school fund. It is our conclusion that these bonds are legal investments for all state funds other than the permanent school fund. ANALYSIS Section 7, chapter 180, Laws of 1949, provides: "* * * Bonds issued under the provisions of this act shall be legal investment for any of the funds of the state, including the Permanent School Fund, any higher educational funds, and the Accident Fund of the Department of Labor and Industries." In the case of Gruen v. State Tax Commission, 135 Wash. Dec. 1, [[35 Wn.2d 1]]our Supreme Court held that the permanent school fund could not invest in these bonds since they are not general obligations of the state. Our Supreme Court on several occasions has held that the permanent school fund may be invested only in bonds which are a general obligation of the governmental unit which issues them. In the Gruen case the court said: [Orig. Op. Page 2] "However, the holding of this portion of the act invalid does not affect the balance of the act." The legislature, when it enacted § 7 of chapter 180, Laws of 1949, clearly expressed its intention to make these bonds eligible for...