Honorable Harvey Davis 

Texas State Soil & Water 

Conservation Board 

Temple, Texas 76501 

Opinion No. H-1013 

Re: Deposit of Soil and 

Water Conservation District 

funds in interest-bearing 

accounts. 

Dear Mr. Davis: 

You have requested our opinion regarding whether a soil 

and water conservation district may deposit its funds in 

interest-bearing time accounts or purchase certificates of 

deposit at banks and savings and loan associations. 

Section 2 of article 165a-10, V.T.C.S., which deals with 

the "deposit and withdrawal of funds" of soil and water conservation districts, provides: 

The Soil and Conservation Funds . . . 

appropriated to Conservation Districts 

shall be deposited in State or National 

Banks and shall be withdrawn upon approval of the Board of Supervisors of 

a District by checks or orders signed 

by the Chairman and Secretary of the 

Board of Supervisors of the District. 

Although soil and water conservation districts are not subject to most of the general statutes governing depositories, 

V.T.C.S. arts. 2525-2569, those statutes do provide a basis 

for defining "deposit" as used in article 165a-10, 9 2. They 

clearly employ the word "deposit" to mean both time and demand 

deposits, w, arts. 2525, 2546. In Shaw v. McBre, 9 S.W.2d 

410 (Tex. Civ. App. -- Texarkana 1928)~ff"~~~ S.W.Zd 121 -_~ 

(Tex. Comm'n App. 1930, jdgmt adopted), the court, construing 

provisions regulating the banking industry, stated that the 

meaning of "depositors" in then-articles 475 and 475a, was as 

broad as "deposit" in then-article 523, defined therein to include both demand and time deposits. 

at 411. 

Shaw v. McBride, guxa 

P. 4183 
Honorable Harvey Davis - page 2 (H-1013) 

Furthermore, the courts of numerous other jurisdictions 

have held that the meaninq of "deposit" or "depositor" embraces 

both time and demand deposits. L&nus Cotton Gin Co. v~. Walker. 

70 so. 

-- 

754, 756 (Ala. 1916): Isenhartv 

837-38 (Coio. 1967); 

_--- * 

Bassett v 

Monty, 423zEx,- 

-. West Haven Bank & Trust.o., 

165 A. 895, 897 (Conn. 1933); Bennett .v.-' American Bax'& Trust 

McCormicZ.~ins~122- 

-_- 

State Savings Bank, 

roll v. Corning 

113 N;WT-500, 502(Iowa 1907); State ex 

rel. Davis v. 201 N.W. 901 904 (Neb. 1 

Jones v. O'Bri~~~~-~F~F"6~~;;59 (S. Dak. 1431). 

924) ; 

On the basis 

of these al 

co., 134 S.E. 781, 786 (Ga. 19mN.E. 151, 154 (Ill. 19191: 

--- 

State ex rel.~ Car 

uthorities. it is our-opinion that the command of section 2 of article 165a-10, that funds of soil and water conservation districts be "deposited" in state or national banks, would 

permit the deposit of such funds in interest-bearing time accounts. 

A "certificate of deposit," however, ordinarily signifies 

a deposit payable at some future date. In effect, it represents the issuing bank's promissory note to the depositor. 

Thompson v. Thompson, 236 S.W.2d 779 (Tex. 1951). A certificate 

of deposit is denominated an "investment" by article 6252-5a, 

V.T.C.S. See First~National Bank in Grand Prairie v. Lone Star _ -. 

Life Insurance Co., 524 S.W.2d 525 (Tex. CiviTpp. --mGr' 

writ ref'd n.r.e., 529 S.W.2d 67 (Tex. 1975). We believe, therefore,that article 165a-10 does not authorize soil and water conservation districts to purchase certificates of deposit. 

Neither article 165a-10 nor any other statute, permits 

the deposit of district funds in savings and loan associations. In Attorney General Opinion H-723 (19751, we held 

that section 6.14 of article 852a, V.T.C.S., does not in itself affirmatively authorize any political subdivision to 

place,its funds in a savings and loan association unless that 

political subdivis.ion is authorized to do so by other law. 

Since we are aware of no other law with regard to soil and 

water conservation districts, it is our opinion that such a 

district is not at present authorized to deposit its funds 

in a savings and loan association. 

SUMMARY 

--, ---- 

A soil and water conservation district may 

deposit its funds in interest-bearing time 

accounts in a state or national bank, but it 

may not purchase certificates of deposit, nor 

may it deposit its funds in a savings and 

loan association. 

p. 4184 
Honorable Harvey Davis - page 3 (H-1013) 

Very truly yours, 

AWROVED: 

Attorney General of Texas 

Opinion Committee 

klw 

p. 4185