Untitled Texas Attorney General Opinion

COFY COFY OFFICE OF T:E ATTWWEY GZ.NXXL OF TEXti ;.USTIR Gerald c. Mann kprll 8, 1939 Attorney General Hon. Y. N. Darst Count Auditor Fort 8ead county Rlch~nd, Texas Dear Sir: Opinion No. o-559 Re: fibatdlsposltlon should be s&e of lntkst Datint .bY Iour request for an opinion on the above stated question has boen received by this orrlce. You; ~gtter reads ii part as.follows: "In 1923 ?avls k Company had been seleoted by the County as depository for the various iunde:ald.had.ondtiposltto the oredlt of seieril funds oertaln amounts-when that lnstlthtlon suspended pa-eats, and in :rugustfollowing the partnership anl lndlvldual membera thereoi weredeclared bankrupts, since which time iantll~recentiythe estates have been in process of adminiStrationin that court. ~Davls k Co@any cave the usual deposltory%ond, provld- lng for the Payment of 6% tnterest on deposits M&oh-bond -8 exeou%ed bjra number of sureties.:The officersof the.County f'lledolalms with the Bankruptcy Court in a large emount,,and oolleoted'tromthe sureties a portloa of their deposlts,but not all. Xlth the payments by the sureties and payments ~through the Bankruptcy Court,Uhe prlnolpal of the olalms, together.wlth interest to date &.adjudloatlon, was paid. Reoently the Bank- ruptoy Court tradea oonslderablepaymeet on the interest on the olalms accumulated since adjudication.The Correct disposition of this payment of interest 1s the matter upon which your o$lnlon 1s dealred." Title 44.of the Revised Civil Stdtutes 1911, Artlole 2MO to 2453, lncluslvc, contains general ~rovisior.swith reference to county ddposltorlea.The above mentioned statutes osereIn full force and eifect at the time t;fthe selectionof the depository of the funds of Fort Bend Courty in 1923, and would control and govern the disposition of interest oollected on such funds. Ron. W. N. Darst, hprll 8, lQ3Q9,Page 2 terest la the matter upon which your oplnron 1s desired." Tltle.44 of the Revised Clvll Statutes 1911, Article 2440 to 2453, inclusive,contains general prcvl- alons slth reference to oounty deposltorles. The above mentioned statutes were in full tome and effect at the t&ne of the ssleotlonof the depository of the funds of Fort Bend County ln 1923, and rould control and goverc the dlsposltlon of interest collected on such funds. &Mole 2442, 'RevisedCivil Statutes, 1911, reads as follows: *It 8hell be the duty of thr eaarisaloa- era* oonrt at ten o~oloak A. Y., 01 the tlret day of eaoh term, at nbloh, by.~artlole MIO, bids are required tc be .meelwed, to pabliely open suoh.bldsand oaaae eaoh bid to be eater- ad upon the aiatateeof the ooart, and to seleet as the depoeltory of all the faadm Oc ths oouaty the banking eorporetlon,ab8oolatlon.or lndi- vldual banker, offerlag'topay the larg58t rata OS interest per 8nntmSor eeld faads; provided, rl ;ogssloaers* oourt mey rejeot any and . The latereat upoa such oounty Baud8 8ha11be CORmtt¶d UpOtlth dallyba1a#loe8t0 the oredlt of suoh eouaty dtb woh depocritory, aad shall bs payable to the aouaty trearrurer monthly, aad shall be placed to the orsdltof the jury faad or to 8uoh funds aa tlm oomlsalon- erb* court my dire&. Ubea eeleotloa of a depoaltory has been msde, the eheoks of bidden whose bids have been refsoted 8hau be Imao- dlately returned. The ohwk.of the bidder who8e bid ia aocepted shall be rettuned rhea hi8 bond 1s filed and approved by the cQpplssloners* aourt, and not until such bond 18 flled and approred.a The faot that the depository waspdeolared ban&- rupt would not affect the ~isposltlon of interest oa the funds of the county when &ollected and paid to the county, t Hon. W. N. Darst, April 8, 1939, Pa&e 3 has the right and authority to detexmlne the dlsposl- tioliof Interest payments on county funds by a bank- rupt oounty depository aa provided by law for the dls- position of such interest on these fund6 at the time the selection of the.depository~36 made. You are further advised that the law in foroe and effeot at the time the releotlon of the de- poaltory in question was made ~prcjvldes that 8uoh latereat should be. plaoed to the oredlt of the Jury $unm$ to suoh funds qs the Conmissioners*Court may . Trusting that the foregoing azkswem your in- qulry,~we remain Very truly yours ATl’ORNE!? CmERhL OF !imLAs Ardell Wllllams By (~Slgned Ardell Willlams Asalstant AW:AW &RovEQ: (Signed) Gerald C. Xann Al’l’ORNE!C UENXRAL OF TEXAS