THE ATNBRNEY GENERAL
OF TEXAS
HonorableGee. H. Sheppard
Comptrollerof Public Accounts
Austin,Texas
Dear Sir Att'n: Mr. Cus Farrar
OpinionNo. O-1109
Re: Whether or not the Comptroller
is authorizedto approve
countydepositorypledge contracts
securedby legallyi8sued
warrantsof municipalities.
We are in receipt of your opinionrequestand quote from your letteras
follows:
"Article297, as amended,leavesout, . . .I and the legally
issuedwarrantsof any of said municipalitiesso named.'
"This departmentnow has for approvalseveraldepositorybonds
securedby, ' and the legallyissuedwarrantsof any of said
municipalitiesso named.'
"Am I authorizedto approvesuch bonds?"
Articlei547, section (c) ( as amended,Acts 1937,Forty-fifthLegislature,
page 1298, chapter484, section1) reads *s follows:
'In lieu of such personalbonds or suretybonds as above specified,
said bankingcorporation,associationor individualbanker so se-
lectedas county depository,msy pledgeand said depositorybank
is authorizedto pledgewith the Commissioners' Court for the
purposeof securingsuch county funds,securitiesof the following
kind, in an amount equal to the amount of such countyfunds on
depositin said depositorybank, to-wit:bonds and notes of the
United States,securitiesof indebtednessof the United States,and
other evidencesof indebtednessof the United States,when said
evidencesof indebtednessare supportedby the full faith and
credit of the United Statesof America and other bonds or other
evidencesof indebtedness vhich sre guaranteed8s to both principal
and interestby the United States Government;bonds of the State
of Texas, or of any county,city, town, independentschooldistrict,
commonschool districtor bonds issuedunder the Fenders1Farm Loan
Act,or road districtbonds, bonds, pledgesor other securitiesissued
Eon. Oeo. H. Sheppard,page #2 (O-1109)
by the Board of Regeuts of the Univarsityof Texan,bank acceptances
of banks having a capitalstoekofnotl.esa thanFiveHuudred
ThousandDollarm ($5OO,OOO)jnotes or bon& securedby mortgages
insuredand debenturesirsuedby the BederalHousingAdminiatretor
of the mated states Government,and bonda Issuedby municipal
corporationain Texa8 . . ."
The type of securities that my be pledgedby countydepositorypledge
contractsare unmteratedin the rtetuteabove qwted. "Legellyiarued
warrantsof any of said munlcipalitiea so named' la not includedin
the amendedrtatute(Acts 1937,Forty-fifthLegislature,pege 1298,
chapter484, section1).
It is the opinionof this departmentthat only the securitiesenumerated
in Article 2547 may be pledged. Therefore,we feel thct countydepository
pledge contracta,includinglegallyissuedwarrantsof municipalities
should not be approvedby the Comptrollerof Public Accounts.
Trustingthat this answer8your question we remain.
Very truly yours
A’Il!OlUiEfGNNNBALOF TEXAS3
a/ Cloud 0. Boothman
w
Cloud 0. Boothmen
Asri8tant
APPROVEDAIJO.11, 1939
o/ 0NRAl.Dc. M4NN
ATTORNFZ GNNNRALOF TEXAS
APPROVNDOPINIONCOMMITTEE
BP R. U. B.
CHAIRMAll