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 2of article 165a-10, V.T.C.S., which deals with the "deposit andwithdrawal of funds" of soil andwater conservation districts, provides:

The Soil and Conservation Funds
. . . appropriated toConservation Districts shall be deposited in State orNational Banks and shall bewithdrawn 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 andwater conservation districts are not subject tomost of the general statutes governing depositories, V.T.C.S. arts. 2525-2569, those statutes do provide abasis for defining "deposit" as used inarticle 165a-10, 9 2. They clearly employ theword "deposit" tomean both time anddemand 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 thebanking industry, stated that the meaning of "depositors" in then-articles 475and 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. 4183Honorable Harvey Davis -page 2 (H-1013)

Furthermore, the courts of numerous other jurisdictions have held that themeaninq 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., 165A. 895, 897 (Conn. 1933); Bennett .v.-' American Bax'& Trust McCormicZ.~ins~122- -_- State Savings Bank, roll v. Corning 113N;WT-500, 502(Iowa 1907); State ex rel. Davis v. 201N.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 2of 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 adeposit payable at some future date. In effect, it represents the issuing bank's promissory note to thedepositor. Thompson v.Thompson, 236 S.W.2d 779 (Tex. 1951). A certificate of deposit isdenominated an "investment" by article 6252-5a, V.T.C.S. See First~National Bank inGrand 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 topurchase certificates of deposit. Neither article 165a-10 nor any other statute, permits the deposit of district funds in savings and loan associations. InAttorney 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 ina savings and loan association unless that political subdivis.ionisauthorized todo soby other law. Since we are aware of no other lawwith regard to soil and water conservation districts, it isour opinion that such a district isnot at present authorized todeposit its funds ina savings and loan association.
SUMMARY --, ---- A soil andwater conservation district may deposit its funds in interest-bearing time accounts ina state or national bank, but it may not purchase certificates of deposit, nor may itdeposit its funds in a savings and loan association.

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

Very truly yours,

AWROVED: Attorney General of Texas

Opinion Committee klw

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