AGO 85-30.

• Court: North Dakota

North Dakota Attorney General Opinions 1985. AGO 85-30. Office of the Attorney General State of North Dakota Opinion No. 85-30Date Issued: August 20, 1985Requested by: Michael S. McIntee State's Attorney McHenry County, North Dakota--QUESTION PRESENTED-- Whether a county treasurer may transfer, upon proper authorization, investment income or interest earned prior to July 1, 1985, through the investment or deposit of the principal amount credited to a school district's special reserve fund to the school district's general fund pursuant to Senate Bill 2270.--ATTORNEY GENERAL'S OPINION-- It is my opinion that a county treasurer may transfer, upon proper authorization, investment income or interest earned prior to July 1, 1985, through the investment or deposit of the principal amount credited to a school district's special reserve fund to the school district's general fund pursuant to Senate Bill No. 2270. --ANALYSIS-- Section 1 of Senate Bill No. 2270 passed by the 1985 Legislative Assembly amends and reenacts N.D.C.C. § 57-19-02 to read as follows:

57-19-02. FUND DEPOSITED WITH COUNTY TREASURER. Such special reserve fund shall be deposited with the county treasurer of the county in which the school district, or the greater part of its territory, is situated, for use and benefit of the school district, to be drawn upon as provided in this chapter, and kept by such county treasurer as a separate trust fund. Moneys in such fund may be deposited, held, or invested in the same manner as the sinking fund of the district or in the purchase of shares or securities of federal savings and loan associations or state chartered building and loan associations, within the limits of federal insurance. The county treasurer shall annually, upon a resolution of the school board, pay to the school district general fund any part or all of the investment income or interest earned by the principal amount of the school district's special reserve fund. (Emphasis supplied.) 1985 N.D. Sess. Laws 622.

Senate Bill 2270 provides, among other things, for two significant acts by the county treasurer, both relevant for answering the question presented. First, the investment holding or deposit of a school district's special reserve fund ('Fund'). Second, the annual transfer, upon resolution of the school board, of the investment income or interest earned by...