HE o~x=Y GENERAI, 

OFTEXAS 

December 31, 1957 

Honorable Henry Wade 

District Attorney 

Records Building 

Dallas, Texas 

Dear Mr. Wade: 

Opinion No. iiW-341 

Re: Whether or not the County of 

Dallas Child Support Clearing 

Account Funds and the County 

of Dallas Juvenile Department, 

Child Support Division Holding Account Funds are secured 

under the bond of the County 

depository banks when deposited 

with said banks without first 

passing through the hands of 

the County Treasurer. 

The following is extracted from your opinion No. 

57-18 (dated August 22, 1957). 

"You have requested the opinion of this office as 

to whether or not the following described funds are 

prevented from being secured by the collateral deposited 

by the four county depository banks by reason of the fact 

that such funds do not pass through the hands of the 

County Treasurer: 

1. 

2. 

;;uEg,of Dallas Child Support Clearing 

; 

County OS Dallas Juvenile Department, Child 

Support Division Holding Account; 

(You have indicated that the funds deposited 

in these accounts are originally deposited in 

the Mercantile National Bank at Dallas, as 

clearing house bank for the four depositories, 

and distributed to all of such depositories) 

. . 

"We 

e a . . . . . . . . . . . ..e . . . . . . . 

are advised that in the selection of the county 

depositories, the Commissioners' Court of Dallas County, 

as provided in Article 2547, R.C.S., accepted a pledge of 

securities from each depository bank, rather than the 

execution of a bond to secure the funds deposited with 
Honorable Henry Wade, Page 2 (WW-341). 

them. The conditions of the pledge agreement of each 

ccllnty depository are set forth In pledge agreements 

executed by each of them substantially as follows: 

'The conditions of the above contract are such 

that, whereas, the above bounden pledgor 

(Denosltory Bank) was on the 25th day of 

February, A.D. 1957, duly and legally chosen 

by the Commissioners Court of Dallas County, 

Texas, as County Depository for said county 

for a period of two years ending, slxty,.,days 

from the time fixed by law for the next 

selection of a depository, upon its bidding 

and agreeing to pay the County of Dallas 

interest on "'time deposits'" on daily 

balances kept in said depository of said 

County of Dallas at the rate of per contract 

Per cent per annum, said interest payable 

monthly. 

'NOW, THEREFORE, if the above bounden pledgor 

(Depository Bank) shall faithfully do and perform all the duties and obligations devolving 

on it by law as the county depository of Dallas 

County and shall upon presentation pay checks 

drawn on it by the county treasurer of Dallas 

County, Texas; on "'demand deposits'" accounts 

in such depository; 

"'time deposit"' 

and all checks drawn upon 

any account upon presentation, 

after the expiration of the period of notice 

required in the case of "'time deposits,'" and ' 

shall faithfully keep sabd::county funds, and 

account for same according to law, and shall 

faithfully keep and account for all funds belonging to the county which are deposited with 

it under the requirements of Article 2547, Vernon's 

Annotated Revised Civil Statutes, and shall 

Include State funds collected by the tax collector, &nd shall pay the interest at the time ana 

at the rate hereinbefore stipulated on "'time 

deposits"; and shall, at the expiration of the 

term for which it has been chosen, turn over to 

its successor all the funds, property, and other 

things of value, coming into its hands as depository, then and In that event this contract is to 

be and become null and void and the securities 

above shall be returned to the pledgor, otherwise to remain in full force and effect, hereby 

specially authorizing the Commissioners' Court 

of Dallas County, Texas, to sell at public or 

private sale, with or without notice to the 

pledgor, the securities, or any part thereof, 
Honorable Henry Wade, Page 3 (WW-341) 

and apply the proceeds of sale to the satlsfaction of any indebtedness arising by virtue of the 

violation of any or all the conditions of this 

contract. 

'The above provision Is given in addition to 

any remedy the pledgee may have In any suit 

;;n;tht; on this contract in any court in this 

. 

"We are assuming that the value of the securities 

pledged is sufficient in amount to cover the funds mentioned 

In your inquiry, and this opinion IS limited to a conslderation of the security of these funds by reason of the nature 

thereof. Although the language used In the pledge agreements substantially conforms to the statutory requirements 

set forth In Article 2547, the deposits mentioned In your 

letter are not specifically described in the pledge agreements as being secured. 

"However, on the date of execution of the pledge agreements, February 25, 1957, there was in effect a statutory provision for the security of funds collected by county officers 

In their official capacity, which are deposited in the county 

depository by the County Treasurer. Article 1656a, R.C.S., 

which provides for this security, reads In part as follows: 

'The County Auditor in counties having a population of one hundred ninety thousand (190,000) 

or more according to the last preceding or any 

future Federal Census shall prescribe the system 

of accounting for the county and the forms to be 

used by the District Clerk, the District Attorney 

and all county and precinct officers and by all 

persons In the collection and disbursement of 

county revenues, funds, fees, and all other 

moneys collected in an official capacity whether 

belonging to the county, Its subdivisions or precincts, or to, or for the use or benefit of, any 

person, firm or corporation; . . . All of the fees, 

commissions, funds, and moneys herein referred to 

shall be turned over to the County Treasurer by 

such officer as collected, and such money shall be 

deposited in the county depository in a special 

fund to the credit of such officer and draw interest 

for the benefit of the county, which funds, when so 

deooslted in such depository, shall be secured by 

the bond of such depository. . . .' (Emphasis added) 

'The Attorney General of Texas, in his Opinion WW-86, 

dated April 5, 1957, has ruled that the amendment to this act, 

which purported to manditorily require the deposit of such 
Honorable Henry Wade, Page 4 (Ww-341). 

funds by the County Treasurer, was unconstitutional, 

but that the act was effective ,a8 originally enacted, 

and that such funds should be deposited with the County 

Treasurer when required by the County Auditor. 

"In construing the pledge agreements which were 

given under the authority of a statute, It is presumed 

that the intention of the parties was to execute the 

agreement as the law required, and the statute constitutes a part of the agreement as if incorporated in it. 

Crane County vs. Bates, 90 S.W. 28 243 (Opinion Adopted 

by Supreme Court); New Liberty Common School District 

vs. Merchants and Planters Bank, 273 S.W. 330, (Writ of 

Error Dismissed); American Surety Company va. Tarbutton, 

248 S.W. 435 (Writ of Error Refused); 10 Tex. Jr. 316. 

"We will consider the . . . . bank accounts mentioned in'your letter separately: 

1. County of Dallas Child Support Clearing Account 

We are advised that the funds deposited in 

this account represent payments made for the 

care and welfare of specifically named children, 

which payments are made to the Chief Probation 

Officer of Dallas under orders of our District 

Courts, to be disbursed promptly by payment 

from the Chief Probation Officer to named individuals. 

Unless the procedure prescribed by 1656a is 

adopted, it is our opinion that the moneys 

deposited in this account do not constitute 

a deposit secured by the pledge agreement. 

In the event, however, that the procedure 

prescribed in said article be adopted, the 

funds would then be secured as specifically 

provided by that article. 

Count of Dallas Juvenile Department, Child 

2* &t-i%visron Holding Account 

We are advised that the funds deposited in this 

account constitute support payments which have 

been made to the Chief Probation Officer under 

order of the District Courts In those situations 

where the named obligee has not been located for 

payment by said Chief Probation Officer. There 

are also deposited to this account sums of money 

ordered to be paid by District Courts to named 

individuals for restitution of damages caused 

by juvenile dellnq,uents'.. Further, this account 
Honorable Henry Wade, Page 5 (w-341). 

represents money to be disbursed by the Chief 

Probation Officer in providing for the welfare 

of wards of the county. 

As the funds deposited in this account are 

largely to be used in making payment for the 

use and benefit of named individuals, It is 

our opinion that the principal part of such 

account is not secured by the pledge agreement of the depository bank unless the procedure established in Article 1656a is adopted; 

and In the event that such procedure be adopted 

and required by the County Auditor, such %ccount would be secured under the terms of the 

pledge agreement as set forth In said article." 

statement 

this 

In our opinion the foregoing is a correct 

of the law and aa euch is adopted as the opinion of 

office. 

SUMMARY 

Funds of the County of Dallas Child 

Support Clearing Acco,unt and County of 

Dallas Juvenile Department, Child Support 

Division Holding Account are not sec,ured 

under the bond of the County depository 

banks, unless these funds are deposited 

through the County Treasurer, or there is 

an express contractual agreement with the 

County depository banks to that effect. 

Very truly yours, 

WILL WILSON 

Attorney Genera1400f Texas 

GC:mg 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

J. C. Davis, Jr. 

John Reeves 

Leonard Passmore 

Milton Richardson 

By 

Jr. .I 

REVIEWED FOR THE ATTORNEY GENERAL 

By: James N. Ludlam