Investment of Certain Tax Proceeds in Authorized Bonds; Registration of Bonds

  1. Law
  2. Georgia Code
  3. Local Government
  4. General Provisions
  5. Investment of Certain Tax Proceeds in Authorized Bonds; Registration of Bonds

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  1. The officer or officers charged with the administration of the fiscal affairs of the several counties and with the custody and control of such funds may invest all sums collected under the requirements of Article IX, Section V, Paragraph VI of the Constitution of this state, for the purpose of paying the principal of bonded indebtedness of such counties, which sums are not actually payable on the principal within 12 months from the date of collection thereof, in valid outstanding bonds of the county or some other county of the state which have been duly validated, or in valid outstanding bonds of this state or of the United States. Such officer or officers may keep the funds so invested in such bonds, with the privilege of changing the investment from the character of the bonds named to another from time to time as such officer or officers may direct until such time before the maturity of outstanding obligations as may be necessary to dispose of the bonds in order to meet such obligations at maturity.
  2. Whenever and as soon as the sinking fund of any county has been invested in the manner specified in subsection (a) of this Code section, the officer or officers of the county charged with the administration of the fiscal affairs of the county shall proceed forthwith to have the securities in which such funds are so invested registered in the name of the county, provided the bonds by their terms under the conditions of their issue are capable of being registered in the name of the owner.

(Ga. L. 1924, p. 86, §§ 1, 2; Code 1933, §§ 87-706, 87-707; Ga. L. 1983, p. 3, § 57.)

Law reviews.

- For note discussing and comparing the prudent man rule and the legal list rule in trustee investment, see 15 Mercer L. Rev. 530 (1964).

JUDICIAL DECISIONS

Requirements not absolute.

- It must be observed that neither Ga. L. 1917, p. 199, § 1 (see now O.C.G.A. § 36-6-16) nor Ga. L. 1924, p. 86, §§ 1, 2 (see now O.C.G.A. § 36-1-8) makes their requirements absolute; county treasurers may follow the provisions of either of these statutes, and thereby become absolutely safe from loss, as well as making safe the public funds with which the treasurers are entrusted; however, it appears the county treasurer may keep the funds in the treasurer's possession so long as the county treasurer is prepared to pay them out when lawfully authorized and required so to do. Century Indem. Co. v. Fidelity & Deposit Co., 175 Ga. 834, 166 S.E. 235 (1932); Allen v. Henderson, 48 Ga. App. 74, 172 S.E. 94 (1933).

This section provides that funds collected for the purpose of payment of principal and interest of bonded indebtedness under the Constitution "may" be invested in valid outstanding bonds of such county or some other county of the state, which have been duly validated, or valid outstanding bonds of the State of Georgia or of the United States. Allen v. Henderson, 48 Ga. App. 74, 172 S.E. 94 (1933).

RESEARCH REFERENCES

Am. Jur. 2d.

- 63C Am. Jur. 2d, Public Officers and Employees, §§ 256, 339 et seq.


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