Hon. Tom Blackwell Opinion No. M-22
District Attorney
Travis County Re: Whether a Savings and
Austin, Texas Loan Corporation can
serve as a county
Dear Sir: depository.
By a recent letter to this office you have re-
quested an opinion in regard to the above stated matter.
Specifically you have asked the following question.
"Under the Constitution, Statutes and
laws of the State of Texas does a Savings
and Loan Corporation (State or Federal) qualify
as a depository for official county funds?"
Articles 2544 through 2559a. Vernon's Civil Statutes,
provide the authority and method for counties to establish a
depository or depositories for county money.
Article 2544, Vernon's Civil Statutes, is quoted,
in part, as follows:
The Conugissloners Court of each county
is hereby authorized and required . . . to
enter into a contract with any bankinq coruora-
tion. association or iridivldualbbnker in such
county for the depositing of the public fund5
of'such county in such bank or banks. . . ."
,(Emphasisadded.)
Article 2545, Vernon's Civil Statutes, is quoted,
part, as follower
"Any bankins corDoration. aseociat~on,
or individual banker in such county desiring
Xon. Tom Blackwell, page 2 W-22)
to be designated as county depository ahall
make and deliver to the County Judge an ap-
pllcatlon applying for such funds . . . .I
(Rnphaaio added.)
Article 2546, Vernon's Civil Statutes, in quote&,
In part, a8 follower
"It shall be the duty of the Conmla-
sioners Court at ten o'clock a.m. on the
first day of each term at which banks are
to be eelectod as county depositories, to
conaider all applications . . . and to select
those applicants that are acceptable . . '. ."
(Emphasis added. 1
Article,2549, Vernon'8 Civil Statutes, is quoted,
in part, aa follower
“As soon as said bond be given and
approved by the Coxaissionere Court, and
the Comptroller, an order shall be made
. . . designating such bankins cormration,
~aaociation or individual banker, as a
depository for the funds of said county .
. . . * (IPnphaaisadded.)
In a prior opinion from this office (V-120, 1947) i
wae held that the language "banking corporation, association
private banker- did not authorize a conmissioners court to
select any individual, partnership, or group of individuals
whatsoever other than a banking corporation, aeeociation or
private bank aa e depository for county f\urdsb
The following language ie found in the prior opinio
YIt is obvious the etatutee contsaaplate
that the county depository must be a banking
inetltution. If thin were not clear mmugh
fraa the ntatutom thumelvesr it would necem-
madly k trua becaum the bus&nom of a
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Hon. Tom Blackwell, page 2 (M-22)
depository of county funds is essentially '
the accepting of deposits and paying checks,
which constitutes the one unfailing exclusive
banking function.
"You are therefore advised that the
Commissioners Court is not authorized to
select, as a county depository, any pexson,
partnership, association or group of persons
whatsoever other than a duly organized bank-
ing institution, association or private
banker with banking privileges in this
stats."
Based upon the foregoing and an analysis of the
relevant statutes, it is the opinion of this office that a
savings and loan corporation does not qualify as a depository
for official county funds.
SUMMARY
Savings and Loan Corporation5 do not qualify
as county depositories under the requirement5 of
Articles 2544 et seqi of Vernon's Civil Statutes.
truly yours,
orney General of Texas
CCJhnkhrra
Prepared by James C. McCoy
Assistant Attorney General
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