OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN

HonorableH. A. Hodges County Auditor WilliaGmcm County &eorgetown,Texas

Dear Sir: Opinion No. 0

the Trust Punde of the t GlekFm a joinb fund and to eponltolyseleoted

by the Co+
or does the Comisslonera ion of dividing the Suds
e than.one Depository,that is funds in one and the District thsr Depository*?

*The Conmissioners Court has failed for the past few years to receive any 'oida Trot: the Banks
or Pirms to act r:s a County De!msitorg,yet the advertisement

Par bids ia placed hs the law direots, therefore it is divided antong thirteen Sank8 within the County on the basis of capitalHonorableR. A. hodgas, Page 2

stock and surplus,but the Trust Yunds of the County and Xstriot Clerk hare been considered

as a joint fund and one Bank eeleotedas a Depository for ssme. Xhen the County Depositories ware selected on yeb. 10th. 1941 there
was some contentionfrom the Bankers as to the division of the Trust Funds on the ssme basis

as the regular County yunds, so the seleoting of a depositorywas postponedfor these speolal funds until an opinionma recaivsd
rrom your department.

*I have always been of the opinion,as has the Commissioners* Court, that this speoial fund was a joint fund and the Court did not have any authority for dividing it in auy man-' nor, but must place it altogether in one Depository. I shall greatly appreoiatehaving your opinion relative to this at your very earliest oonvenlenoe."

Artiole 2558a,Vernon*8Annotated Civil Statutes, referred to in your letter, reads in part as follourer

YSsotion 1. The CommissionersCourt of eaoh oounty is authorizedand required at the February tera thereor next follotig each general eleotlon to reoeivs applioationsfram any banking corporation, asaooiatlonor individual banker in suah county as may desire to be selectedasa depositoryfor Trust Funds lnztpossession

of the County and DistrictClerks. Said applicationsshall be filed with the County Clerk on/or before ten o'olook a.m. on the rlrst day of the term of Court at whioh said applioationsare to be reoeived. Said applicationshall be aooompaniedby a certifled oheok ror not less than one-half of one per cent of the average daily balances of the anwunt;of'Trust

Funds in the possessionof the Clerks during,

the preoedingcalendar year whiah amount shall be determinedby the County Clerk on/or before ten (10) ,iays before the applioations

herein providedfor are required to be filed, and a certifiedoheok accompanying\ ’

,

HonorableHl A. Hodges, Page 3

the applioationas herein provided for in the amount 80 determinedby the County Clerk shall be sUYicient oomplianoe with this provision, which oertiriedoheok shall be a guarantee of the good faith on the part of the applioant, and that if his applicationis aocepted the bond hereinafterprovidedfor will be entered into. Upon the failure of the banking oorporetion,assooiationor individualbanker that may be eeleotsdas such depository,to give the bond requiredby law, the amount of suoh certirledcheok shall go to the oounty as liquidateddamages,and the oounty shall seleot another depositoryaa hereinafterprovided. In the event any applloation shall not be accepted, the certifiedcheok aoooapanying the same shall be returned. The oheok of the applioantwhose applicationis accepted shall be returnedwhen hi6 bond is filed and approvedby the Commissioners Court and not until such bond is filed and approved. It shall not be necessary for the oounty to advertise or give notice that applications will be rsoelved aa provided by this Statute.

Y300. 2. It shall be the duty of the CommissionersCourt at ten o*olook aim. on the first day ot.each term at which applioations
are required to be received to enter said applioatlons

on the minutes of the Court and to select a depository for the Trust .Punds in the possessionof County and Distrlot Clerks.

"Sec. 3. Within thirty (30) days after the selectionof such depository, It shall be the duty of the banking corporation,association, or individualbanker so seleoted to qualify in the same mannerae now providedby law for the qualification

of county depositories.

Yieo. 4: As soon as said depositoryhas qualifiedas provided by law and has been approved by the Commissioners Court, said Court shall make and enter an order upon the minutes,HonorableE. A. -Badges, Page k

designatingsuoh banking corporation,association, or individual banker as County Depository for Trust Funds until the designationand qualification

of a successor,and thereupon it shall be the duty of the County and Xstrict Clerks of such oounty to deposit all Trust yunds in their possessionwith said~depository in the mauner hereinafterprovided; provided in the event, a new depositoryhas not been selectedand qusliriedby April 15th succeeding the term of Court at which a depository is required to be seleotedas requiredby this Act, then the term of such depositoryshall end and all Trust Funds due or on deposit shall be paid to the Clerk in hose nane the account is carried. r "Sec. 5. Ii for any reason there shall be submitt%dno applicationby any banking corporation,

assooiationor individual banker in the county, or in case there shall be no applicationfor the entire amountof Trust Funds, or in the event all applicationssubmitted have been rejected by the Commissioners Court, or in the event a depositoryselected has failed to qualify, or in the event that the depositoryshall become insolvent,or in the event a new depositoryhas been selected on amount of the failure of the regular depository to executea new bond as hereinafterprovided, then in either event, the Conmcissionere Court shall advertise for applicationsfrom any banking corporation, association,or individual bankerwithin the State of ?exas, and may select a depository, which depository shall qualif'y

in the manner above provided. Notice of the selectionof a depositoryas providedby tNs Act shall be published once each week for tuo (2) successiveweeks in a newspaperof general circulation within the county, if there be such newspaper. If there is no newspaper published in the county, then the same shall be posted at the courthouse for said period. In the disaretion of the Commissioners Court said notice nay also be published in any newspaper out&ads\ ’

Donorable il. A. Hodges, Page 5

of the county for the same length of time.

*sec. 6. It shall be the duty OS the depositoryto provide for the payment at the county seat of the county upon presentment all checks drawn by the County or District Clerk upon the funds deposited in the name of such Clerk es long es such funds shall be in the possessionof the depositorysubject to such checks. For every failure to pay such check at such county seat upon presentment, said depository shall forfeit and pay to the holder of such checlks ten per cent (lO'$) of the amount thereof.

Vet. 7. If any depository selectedby the Commissioners

Court be not located at the seat of such county, said depository shall file with the County Clerk of such county, s statementdesignatingthe place at said county seat where, and the person, firm or corporation

by whom, all the depositsmay be received from the Clerks for such depository, and where and by whom in said county seat all oheoks drawn on such depository will be paid and such depository shall cause every check to be paid upon presentationat the place
so designated so long as the said depo&ory has sufficientfunds to the credit of such funds applicableto their payment. (I "

. . . After oarerullyconsideringthe provisionsof Article 2558a, quotedabove, !~e are of the opinion that the Commissioners'Court is authorizedand required to select only
one dSpOSitOFy for trust funds in possessionof the County and District Clerks. Therefore, the question as above stated is respectfullyanswered in the negative.

Trustingthat the foregoingfully answersyour inquiry,we are

Yours very truly

AW:GO .,“V .;rdell :lilliam C0MM”Wi.C