Hon.
~;---_ Henrv
-~~-_-” Wade Opinion No. C-226
Criminal District Attorney
Records Building Re: Construction of Article
Dallas, Texas 75202 8021 of Vernon's Civil
Statutes relative to the
Attention: depository for funds of
Hon. Ted 2. Robertson the City and County of
Assistant District Attorney Dallas Levee Improvement
District.
Dear Sir:
Your request for our opinion concerning the construc-
tion of Article 8021 of Vernon's Civil Statutes has been received
by this office. This request indicates that the City and County
,of Dallas Levee Improvement District has designated the Republic
National Bank of Dallas as its principal depository, but that the
bank is not a County depository and has not made a bond payable
to the district as required by Article 8021. On June 30, 1963,
the bank did, however, advise that certain securities were on file
in its trust department as collateral for the amount on deposit.
No depository contract exists, and the auditor of Dallas County
now questions this arrangement.
The exact questions propounded to us in your letter are
as follows:
"1 . Does the City and County of Dallas Levee__
Improvement District have a legal right to keep all
or part of its funds in a bank, not a county deposi-
tory, that has not given 'bond to the district with
a corporate surety company as surety, which is au-
thorized to do business in the State of Texas, in an
amount equal to the funds so deposited, conditioned
upon the safe keeping of said funds and paying of the
same? f (Art. 8021, V.R.C.S~.)
"2. If the answer to question No. 1 is in the
affirmative, is the pledge of collateral by the bank
on file in its own trust department binding to pro-
tect the district's deposited moneys:
"a. without a written contract, or
"b. with a written contract?"
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Hon. Henry Wade, page 2 (C-226)
Article 8021 states as follows:
“The board of supervisors shall select a &-
positorv or deDoSitorieS for funds of the district
and the county treasurer shall deposit such funds
of the districts in such depository or depositories
as the supervisors may direct
denository shall receive any
thev shall Rive bondst;ut;; dis~tr,‘~ti~ith a corDor-
ate surety c muany a r Y.W authorized
to do businezs in the State of Texas. in an amount
eaual to the funds so deaosited. conditioned uwon
the safe keeping of said funds and navinz of the
B.” (Emphasis added)
The statute in question applies to all Levee Improvement
Districts throughout this state. The board of supervisors may de-
posit the district’s funds in any depository they choose, there
being no requirement that the depository also be the county deposi-
However it is necessary that the depository execute a bond
:;:;‘a corporate surety company in accordance with Article 8021.
It is immaterial that the banking institution may satisfy the dis-
trict of its ability to safely keep the funds. The requirement
of the Legislature is that the depository execute a bond, and we
so advise you that the depository should be in compliance with the
terms of Article 8021. Even if a written contract existed, it
could not override the provisions of the statute. Your first ques-
tion is therefore answered in the negative.
The decision reached makes it unnecessary to answer your
second question.
SUMMARY
The board of supervisors of a Levee Improvement
District may deposit the district’s funds in any de-
pository they choose, but it is necessary that such
depository give bond to the district with a corporate
surety company as surety, in an amount equal to the
funds deposited, pursuant to the provisions of Article
8021 of Vernon’s Civil Statutes.
Yours very truly,
WAGGONER CARR
Attorney General of Texas
By&k-?d & 6chiii
Fred D. Ward
FDW: wb Assistant
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,, .
Hon. Henry Wade, page 3 (C-226)
APPROVED:
OPINION COMMITTEE3
W. V. Geppert, Chairman
Al10 B. Crow
Wayne Rodgers
34. 0. Shultz
Gordon Cass
APPROVEDFOR THE ATTORNEYGENERRL
By: Howard W. Mays
-llOO-