The Attorney General of Texas 

NOV’Naber 20, 1985 

JIM MAlTOX 

Attorney General 

Supreme Cart Buildin 

P. 0. Box 1254S 

Austin. l%. 78711-2548 

512147%?501 

Talex 9101874.1367 

Telecoplu Sl2/4?502+8 

714 Jackson. Suite 700 

Dallas. TX. 75202- 

2141742-6944 

4S24 AlMRD Ave.. Suit0 180 

El Paso. TX. 799D5.2793 

915!- 

1001 Texas. Suits 7W 

llouston, TX. 77002-3111 

71312296888 

808 Broadway, Suite 312 

Lubbock. TX. 79401-3479 

mw747.5238 

4309 N. Tanth. Suite B 

McAllen, TX. 7850%1885 

512lM2-4547 

2w M.,” Plaza. SIllto 400, 

San Antonio. TX. 782052787 

%?/2254191 

An Equal OPP’XtunltYl 

A,,lr,,mtlve Action EmPlOW 

Ms. Deborah Jo Mertdors 

Robertson County mditor 

P. 0. Box 646 

Franklin, Texas 77856 

Opinion No. ~~-383 

Re: Whether county funds must b 

deposited in a designated count 

depository 

Dear Hs. Meadors: 

Pursuant to gJur limited authority to request opinions, you 85 

two questions in regard to the depositories for county funds i 

Xobertson County. You inform us that at the present time, the count 

has selected, thrnzgh the “bid” process, a county depository for th 

next two years. U’e assume that this “bid” process is the procedur 

outlined in artic:.es 2545 aid 2546, V.T.C.S. You also inform us tha 

all of the county funds with the exception of the “Road and aridg 

Precinct Fund” hmre ,been deposited in the bank designated as tb 

couaty depository. 

You further kadicate that this “Road and Bridge Preclncc Fund 

was initially deposited in the designated depository bank when tb 

taxes were colleci:ed’ by the tax collector ‘for that purpose. However 

these funds were tubsequently transferred to one of four banks locate 

in each of the for.r county precincts. We understand that warrants ar 

drawn on these four accounts located in the varfous banks and ar 

signed both by the county auditor and the treasurer. You first as 

whether this depo6:ltoty system is in compllmce with state law. W 

conclude that the system is contrary to the system prescribed by th 

leglalature In articles 2544-2549. V.T.C.S. 

As a prel%miusry matter, the Robertson County commissioners tour 

has only the pomrs conferred either expressly or by necessar 

implication by thtr constitution and statutes of this state. See Tex 

Coust. art. V, 51~8; Canales v. Laughlin, 214 S.W.Zd 451, 4r(Tex 

1948). The 1egis:iature has required a county commissioners court t 

follow a prescrite,d procedure in exercising its duty to safeguar 

county funds. See V.T.C.S. arts. 2544-2549. A conmissioners court I 

authorized to ez;r %nto a contract with any bank in the county as 

depository of county funds, after giving public notice that sue 

contract is made. See V.T.C.S. art. 2544. More than one count 

depository msy be selected. See V.T.C.S. art. 2546. 

- 

I 

p: 1756 
ns. Deborah Jo Meadors - Pag’e 2 (JIG383) 

Article 2549(a), V.T.C.,S., provides: 

(a) As soon aB said bond be given and approved 

by the Comissione:rs Court, an order shall be made 

and entered upon the minutes oft said Court designarinn such bankian corooratlon, association or 

individual banker, as a ‘depositorg for the funds 

of said county r~n.til sixty (60) days after the 

time fixed for th; next selection of a depository; 

and thereuuon. it-shall be the duty of the county . 

treasurer of sa:.d county Immediately upon th; 

making of such order, to transfer to said depository all the fuud.a belonging to said county . . . 

and Immediately r.pon receipt of any money thereafter, to deposit the same with said depository to 

the credit of said county. . . . It shall also 

be the duty of tha tax collector of such county 

to deposit all tlu:es collected by him, or under 

his authority, for the State and such County . . . 

in such depository or depositories, as soon as 

collected. . . . . (Emphasis added). 

Thus, all county funds are to be deposited In the county depository 

for the prescribed period of time. The ouly exception to this 

requir-t is found in ar<:Lc&e 2549(c), V.T.C.S.. which provides in 

part: 

(c) Unless rcpressly prqhibited by law or 

unless ‘it is in c:ontraventiort of any depository 

contract between ,L county and say depository bank, 

the Commissionerr, Court may direct the county 

treasurer to: 

(1) withdr;nr any amount of funds of the 

county that axe deposited In a county deposltory and that ere not required inrmcdiately to 

pay obligrtionl$ of the county or required to be 

kept on deposit under the terms of the depository contract; and 

(2) invest those funds In direct debt 

securities of zhe United States. 

Consequently, the present depository system In Robertson County is 

prohibited by this provisiorl.. 

As indicated above, tL? road and bridge fund is presently located 

in four banks that bave not been designated as county depositories. 

The “road and bridge” fund is lone of three statutory funds which are 

p. 1757 
Ms. Deborah Jo Meadors - Page 3 (JM-383) 

to be deposited by the treasurer into the county depository. 

See V.T.C.S. art. 1628; 

m7a). 

see also Attorney General Opinion E-1185 

In Attorney Genera,1 Opinion ~-33 (1967) it was held: 

The purpose of the procedures~ prescribed by the 

statutes relating to the selection of 8 county 

depository is to secure to the county a safe. 

responsible depository for its funds with a return 

of interest for ‘Jj6e thereof. . . . 

There is no indication that the commissioners court has required the 

additional four banks to ~:omplp with any of the bonding requirement6 

specified In article 2347. V.T.C.S. Thus, the funds deposited are 

unprotected by the procedure. In addition. there is also no 

indication that these four banks have submitted applications to be 

considered as a proper cclusty depository. Accordingly, we conclude 

that the present depository systen Is contrary to the intent and 

purpose of articles 2544 tlueough 2349, V.T.C.S. 

You also aak whether it is perniasible to leave these road and 

bridge funds in the four b,anks until such time as you are to select 

your county depository. We think not. As indicated above, article 

2349 require6 that these funds be deposited in the county depository 

until “60 days after thi time fLxed for the next selection of a 

depository.” See V.T.C.S. art. 2349. See also Attorney General 

Opinion O-38377941) (bank selected remains the county depository 

during the terms of the coutract). 

SUMMARY 

A county comnissL~mer6 court is not authorized to 

deposit funds Ln banks which have not been 

designated as the county depository in compliance 

with articles 2344 through 2349, V.T.C.S. Article 

2349 requires county officials to depoeit all 

county fund6 in the designated county depository. 

JIM MATTOX 

Attorney Ganeral of Texas 

NARY KELLER 

Executive Assistant Attorney General 

p. 1738 
Ms. Deborah Jo Meadors - Page 4 (m-383) 

ROBERT GRAY 

Special Assistant Attorney General 

RICK GILPIN 

Chairman. Opinion Comittee 

Prepared by Tony Gulllory 

Assistant Attorney General 

APPROVED : 

OPINION COMMITTEE 

Rick Gilpin, chairman 

Co1111 Carl 

Susan Garrhm 

Tony Guillory 

Jim Hoellingar 

Jenalfcr &Lggs 

Nancy Sutton 

Sarah Woelk 

p. 1759