OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

GROVER SELLERS 

ATTOIINCI GENERAL 

Beaerablc J. C. 8.0 

Criminal Di atrist bt tornry 

B818rm co\lntt 

Cord aab8, ?a888 

to be bnrrored. 

ontention haa been 

Our State Statute8 

hoal Borrd where a 

member of the 

alo la the Sahool Trot curer for 

uyrt 31, 1946, and al though Mr. 

dual, be III at the same time Aathe bank from rhon a loan la be- 

“I would apprsolate an npiaion from you as to 

wbrthsr or not the sabool board is l vthoriaed and 

ompawered ta borrow money Worn a bank whore a maw 

bar of muob rahool board 18 8180 a direator in the 

Bank where tbe money in sought to be borro8ed~g 

You apt rcsFectfu!?y ndllaad thi!t the Schnal Boerd is 

not euthorlzec! to bnrrm mono7 from a bank where a member of nuah 

g&o01 Poord fs rlcrr, F dSroctor in t.he ban:; Croa: rl.i.& the money 

is rouph t t.o hc lwrrored. 
. 

lonarable J. C. nos - PagO 2 

It IS am old am the common Law that a pub110 oPflolal 

uy not in bir effialal oapaoitj make a aontraot In whioh ha 18 

paevaiarll~ intweeted. 

1736. 

Willi8tnn an Cnntraotm, Vol. 6, 800. 

lot only did Texas adopt the COmon Law am tbs rvle et 

&eoialon as early aa 1840, bvt the foregoing principle ham been 

eonaiatantl~ affirmed *herever the question hae arimen. 

Such a holding wea made in !J’lanikin v. Fokea, 16 tax. 

160, wherein the first 6vpreme Court of Texas held that a aommissioner of tha GoVernmeat to sell land aovld not wake ‘a oontreat rhioh would g:ire him an Interest in an official act to be 

done by him,” uyiag that Nab 

round moral i ty l m 

‘rovld be repugnant. to I l w Andy 

In City of Edinbarg v. Ellis, 69 9. m. (2) 99, JvdC;a 

sharp of the Commlaaion aaId 

*It la tho genaral rule tba t mvalcipal contracts in which offleers or employees of the aity 

hara a personal pecuniary Interest l ro void. 44 

C. J. pp. 69-M; 6 R.C.L., pp. 739-740. l l l 

‘The foregoing rule rests upon mound public 

policy. Its objeot 1s to lnnura to the city etrlat 

fIdelit upon the part ot those rho represent It 

and manage Its afialra. The rvle prohibiting pvblia officers from heing lntereetod in ~ubllc contreats should be scrvpvlnnsty enforce3.’ 

In an opinion dated September In, 1829, addressed to 

Honorable I?. Il. II. Marra , Et8te Evparlntendent oi Public IDntruction, this department adrlsed t.hat the direotor of a corporation mwrin& aa depositary or treanvrer of an Independent 

school 4lstrict would be ineligible f’or appointment and qvmlifiaation aa a trustee of tbe sohool dintrlct. This opinion was 

followed by this department in 0pinion No. 0-5158 holdjnc the 

sme thinu. There are other opinions oi thfs department to the 

name effect. 

The same rlee that entorr into a contract of deposit 

by a public board or offloar with a bank or institution in which 

he ~PII a pecuniary Interest inheros in a contract of lo&n. A deposl t. Is la oosonoe a loan by the depouitor to the denoaltee bank. 

The sum deposited becomea the property or t,ho hank and the bank a 

debtor to the depositor therefor. 
357 

Bonorrbl e J. 0. Roe - paga 3 

It la aot a qvoatloa whether the pertioular omtraot 

thus forbidden is bvrt?vl. It might, on the contrary, he mtval1~ hanailelalr but tbo law will not permit an lnqulr7 jnto tba 

ratus aonasqvenoeo nf tba tranuatlon~ It ie contrary to aovnd 

pobli0 polioy.