EEEATTOWNEY GENERAL 

OFTEXAS 

Hon. William W. Day Opinion No. M-592 

County Attorney 

Calhoun County Re: Authority of West Side 

Courthouse Navigation District in 

Port Lavaca, Texas 77979 Calhoun County to use an 

out-of-county depository 

when there are two banks 

in such county, and reDear Mr. Day: lated questions. 

In your letter requesting an opinion from this office, 

you submit the following facts which we quote as follows: 

"There are two banks in the County of 

Calhoun--the First National Bank and the First 

State Bank and Trust Company. The First National 

Bank was the successful bidder for the depository 

for Calhoun County. 

"The West Side Navigation District operates 

In Calhoun County and Is a governing body with 

its principal office in Calhoun County and all 

of its commissioners are required to be residents 

of Calhoun County. The West Side Navigation District in the past years has been using an out of 

county bank as its depository. The First National 

Bank has presented me with a request that the West 

Side Navigation District be informed by my office 

that their depository is the same as tht County's 

unless they wish to take separate bids. 

With regard to these facts you submit the following 

questions: 

"1 . Can the West Side Navigation District 

use an out of county depository when we have two 

banks In the County? 

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Hon. William W. Day, page 2 (M-592) 

"2. Must the West Side Navigation District, 

if they do not let their depository out for bids, 

use the same depository as Calhoun County?" 

The statutes which pertain to the selection of depositories by navigation districts are Articles 8221, 8244, 824&a 

and 8263e, Section 40, Vernon's Civil Statutes. These statutes 

generally provide that the selection of depositories by navigation 

districts shall be, where applicable, in accordance with the provisions of the statutes relating to county depositories. The 

matter of the selection of county depositories is governed by 

Articles 2544-2558a, Vernon's Civil Statutes, With respect to 

these statutes, It was stated by the Court in Cave v. Montgomery, 

274 S.W.2d 855 (Tex.Civ.App. 1954, no writ) at page &b the 

following: 

I, 

. . . The law, in effect, requires the 

Commissioners Court of a county to select a 

county depository every two years at its 

regular February term following each general 

election, or as soon thereafter as wisdom, 

prudence and prevailing conditions will 

justify such action. If a county has no 

bank, or no suitable bank, within its limits, 

the Court may negotiate with one or more banks 

In adjoining counties to be Its depository and 

may under such circumstances exercise its 

sound judicial discretion in selecting its 

county depository and seeing that its county 

funds are lawfully secured. Hurley v. Citizens' 

Nat. Bank of Sour Lake, Tex.Civ.App., 229 S.W. 

663; Hurley v. Camp, Tex.Civ.App., 234 S.W. 577; 

Coffee v. Borger State Bank, Tex.Civ.App. 38 

S.W.2d 187. If the Commissioners Court of a 

county receives no applications for a county 

depository at Its regular February term or if 

all applications are declined by the Court, the 

Court may, as provided for in Article 2550, 

enter into a pledge contract with one or more banks 

in the county or in an adjoining county to be its 

county depository, provided its funds are there 

secured as required by law, in which event no 

further notice is required." 

In exercising its discretion in the selection of a bank 

as the county depository, the Commissioner's Court’s decision is 

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Hon. William W. Day, Page 3 (M-592) 

final In the absence of a gross abuse of such discretion. 

Citizens State Bank of Roby v. McCain, 274 S.W.2d 184 (Tex. 

Civ.App. lY54, no writ). 

On the basis of the foregoing authorities, you are 

advised in answer to your first question that the West Side 

Calhoun County Navigation District may, in its discretion, 

designate an out-of-county depository in an adjoining county 

If the statutory procedure for the selection of county depositories has been followed. 

As previously noted, the selection of a county deposltory is regulated by statute. Article 2544, Vernon's Civil 

Statutes, provides as follows: 

"The Commissioners Court of each county 

is hereby authorized and required at the February 

Regular Term thereof next following each general 

election to enter into a contract with any banking 

corporation, association or individual banker In 

such county for the depositing of the public funds 

of such county in such bank or banks. Notice that 

such contracts will be made by the Commissioners 

Court shall be published by and over the name of 

the County Judge, once each week for at least 

twenty (20) days before the commencement of 

such term in some newspaper published in said 

county; and if no newspaper be published therein, 

then in any newspaper published in the nearest 

county. In addition thereto, notice shall be 

published by po;ting same at the courthouse door 

of said county. 

Consequently, in answer to your second question, you 

are advised that if the West Side Calhoun County Navigation Dlstrict designated an out-of-county depository without complying 

with the notice provisions of Article 25514, Vernon's Civil Statutes, 

and the other applicable statutes pertaining to the selection of a 

county depository, such designation would be invalid. Nevertheless, 

we find no authority which would require the West Side Calhoun 

County Navigation District to designate the same depository as 

Calhoun County. 

SUMMARY 

The West Side Calhoun County Navigation 

District may, in its discretion, designate an 

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Hon. William W. Day, page &(M-592) 

out-of-county depository In an adjoining county 

if the statutory procedure for the selection of 

county depositories has been followed. 

If the West Side Calhoun County Navigation 

District designated a use of county depositories 

without corn lying with the notice provisions of 

Article 25 sp 4, Vernon's Civil Statutes, and the 

other applicable statutes pertaining to the 

selection of a county depository, such deslgnatlon would be Invalid. Nevertheless, no authority 

is found which would require the West Side Calhoun 

County Navigation District to designate the same 

depository as Calhoun 

Prepared by Ivan R. Williams, Jr. 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Acting Co-Chairman 

Dan Green 

Jimmy L. White 

Fisher A. Tyler 

Sarah Phillips 

MEADE F. GRIFFIN 

Staff Legal Assistant 

NOLA WRITE 

First Assistant 

ALFRED WALKER 

Executive Assistant 

C. tiRT-IR 

General of Texas 

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