THE ATNBRNEY GENERAL 

OF TEXAS 

Honorable Gee. H. Sheppard 

Comptroller of Public Accounts 

Austin, Texas 

Dear Sir Att'n: Mr. Cus Farrar 

Opinion No. O-1109 

Re: Whether or not the Comptroller 

is authorized to approve 

county depository pledge contracts 

secured by legally i8sued 

warrants of municipalities. 

We are in receipt of your opinion request and quote from your letter as 

follows: 

"Article 297, as amended, leaves out, . . .I and the legally 

issued warrants of any of said municipalitieso named.' 

"This department now has for approval several depository bonds 

securedby, ' and the legally issued warrants of any of said 

municipalities so named.' 

"Am I authorized to approve such bonds?" 

Article i547, section (c) ( as amended, Acts 1937, Forty-fifth Legislature, 

page 1298, chapter 484, section 1) reads *s follows: 

'In lieu of such personal bonds or surety bonds as above specified, 

said banking corporation, association or individual banker so selected as county depository, msy pledge and said depository bank 

is authorized to pledge with the Commissioners' Court for the 

purpose of securing such county funds, securities of the following 

kind, in an amount equal to the amount of such county funds on 

deposit in said depository bank, to-wit: bonds and notes of the 

United States, securities of indebtedness of the United States, and 

other evidences of indebtedness of the United States, when said 

evidences of indebtedness are supported by the full faith and 

credit of the United States of America and other bonds or other 

evidences of indebtedness vhich sre guaranteed 8s to both principal 

and interest by the United States Government; bonds of the State 

of Texas, or of any county, city, town, independent school district, 

common school district or bonds issued under the Fenders1 Farm Loan 

Act,or road district bonds, bonds, pledges or other securities issued 
Eon. Oeo. H. Sheppard, page #2 (O-1109) 

by the Board of Regeuts of the Univarsity of Texan, bank acceptances 

of banks having a capitalstoekofnotl.esa thanFiveHuudred 

Thousand Dollarm ($5OO,OOO)j notes or bon& secured by mortgages 

insured and debentures irsued by the Bederal Housing Adminiatretor 

of the mated states Gov ernment, and bonda Issued by municipal 

corporationa in Texa8 . . ." 

The type of securities that my be pledged by county depository pledge 

contracts are unmterated in the rtetute above qwted. "Legelly iarued 

warrants of any of said munlcipalitiea so named' la not included in 

the amended rtatute (Acts 1937, Forty-fifth Legislature, pege 1298, 

chapter 484, section 1). 

It is the opinion of this department that only the securities enumerated 

in Article 2547 may be pledged. Therefore, we feel thct county depository 

pledge contracta, including legally issued warrants of municipalities 

should not be approved by the Comptroller of Public Accounts. 

Trusting that this answer8 your question we remain. 

Very truly yours 

A’Il!OlUiEf GNNNBAL OF TEXAS3 

a/ Cloud 0. Boothman 

w 

Cloud 0. Boothmen 

Asri8tant 

APPROVED AIJO. 11, 1939 

o/ 0NRAl.D c. M4NN 

ATTORNFZ GNNNRAL OF TEXAS 

APPROVND OPINION COMMITTEE 

BP R. U. B. 

CHAIRMAll