OAG 40-8.

Case DateJuly 08, 1940
CourtOregon
Oregon Attorney General Opinions 1940. OAG 40-8. 10OPINION NO. 40-8[20 Or. Op. Atty. Gen. 10]State bond commission may invest state funds in street improvement bonds of the city of Stayton.July 8, 1940.State Bond Commission.Gentlemen: Pursuant to your request of July 3, 1940, I have examined charter of the town of Stayton, Oregon, with amendments thereto, and other instruments mentioned in said letter, relating to the legality of bonds of the town of Stayton in the principal sum of $13,000, authorized by charter ordinance and vote of the people of Stayton to pay the cost of street improvement. It is my opinion that the proceedings in connection with the issuance of said bonds are legal, and that when issued and delivered such bonds will be binding general obligations of the town of Stayton, payable from taxes duly authorized. You have requested my opinion as to the legality of said bond issue and the eligibility of same for purchase by the state bond commission under the provisions of sections 68-501 and 68-502, Oregon Code 1930, and section 68-503, Oregon Code 1935 Supplement, as amended by chapter 70, Oregon Laws, 1937, and by chapter 184, Oregon Laws, 1939. Section 68-501 creates the state bond commission. Section 68-502 authorizes the commission to invest state funds. Section 68-503, Oregon Code 1935 Supplement, as amended by chapter 70, Oregon Laws, 1937, as amended by section 1 of chapter 184, Oregon Laws, 1939, provides that said bond commission, in its discretion, may invest in any of the securities therein mentioned, among which are the following:
"1. In interest-bearing bonds, notes or obligations of the United States of America, or of those for which the faith of the United States is pledged for payment of the principal and interest, or in bonds acceptable to the United States government to secure deposits of postal savings funds."
11I do not find such bonds to be proper investment for any other class or classes of securities in said section mentioned. Section 759 of Title 39, U. S. C. A., which relates to the deposit of postal savings funds in banks, provides among other things:
"Postal savings funds received under the provisions of this chapter shall be deposited in solvent banks, whether organized under national or State laws, and whether member banks or not of the Federal reserve system, being subject to
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