Honorable J.. M. Fallcner 

Comnlssloner 

Department of Banklng 

Austln, Texas 

Dear Hr. Falknert 

Opinion th. c- 438 

Re: Whether a county depository 

may be validly selected If 

such bank has-on its board 

of directors, or among its 

stockholders, one of the following officers of the county: 

county judge, county attorney, 

county treasurer or county 

clerk. 

You have requested our..oplnlon on the following questions: 

"1. May a county‘depoeltory be validly selected if'such bank has on its Board of Directors, or 

: among Its stockholders, one of the following officers 

or the countyr 

2 

County Judge ' 

County Attorney 

2: 

County Clerk 

County Treasurer. 

“2 . May one of the above named officers become 

a rtockholder or a director of a bank after such 

bank has been designated es county depository, NMwhile the depository contract Ls In effect, without 

affecting the validity of the contract or without 

creating a violatlon of the offlcerle oath." 

Article 2340, Vernon’s Civil Statutes, provides as follows: 

"Before entering upon the duties of their offlee, the county judge and each comissioner shall 

taka the official oath, an4 shall also take a wrlttea mth that he will not be directly or Indirectly 

interwted lnan~coatracttith, or claimagainst, 

th8.count.y In which ha realdea, except such warrants 

aa m8y Irsue to haa aa ftrw or orficei Each commie8loner shall execute l baad to be approved by the 

county judge In the mm oi three thoxiaand dollars, 

payable to the county treawrer, conditioned for the 

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. 

I 

Hon. J. M. Falkner; page 2 (C-438) 

Ion of 

salect 

faithful performantie of the duties of.his office, that he will pay over to his county all 

moneys Illegally paid to him out of county funds, 

as voluntary payments or otherwise, and that he 

will not vote orglve his consent to'pay out. 

county funds axcept for lawful purposes." 

In vlew.of these provlslons, It has been ‘the.tionelrtent opln-. 

this ,offlce since .19&3 that.the cdmmissloners court cannot _ 

as a~county aepository a hank In Which -tne county juage or 

any member of the ccaunlseloners court Is a stockholder~or,dlrectpr 

of such bank; and that such contract la void as against public policy. See Attorney.Ceneralls'oplnlon to A. M. Turney, County Judge 

of Taylor County, dated February 3, 1913, bye C. X. Cureton, First 

Assistant Attornay General, and Attorney Gon$ralts Opinion O-2980 

For ‘simlZ8r results, see Attdmey.Geneialts Opinions ~~-161 

W-359 (i58) . 

?ou are therefore advleed that a county depository may not be 

Validly selected If such bank'has on Its board of directors or among 

lts~stockhol&er~ the county'judge.of the county. 

The oath pxsacxlbod by Artlcie'2340, Vernon's Civil Statutes; 

~1s not.appUcable to ,the county 'attorney, county clerk, or county 

treasurer, and ,tI$rs officers, do not take 'an oath that, they will not 

be directly or bdfrect&y Interested in,any contract with or claim 

against the.county In ~whlch they reside, except warrants as may b.e 

$ssued to.theni.as~ fees of office. 'Nevertheless, -It la fell settled 

In Texas that'lf. a public official, directly or Indirectly has a 

pecuniary 'Interest ln a contract, nozmatter box honest he nilght be, 

and although ha may not be influenced by the interest, such contract 

is agalnst'public:poUcy. 

~Attorney Gonoral’ts opinion 

76 S.W. 

(x%2). 

-359 (1% ii 

05 .(1925). 

) and WV-1241 

I 

In this connection, Article 2364, Vernon's Civil Statutes, 

provides as folbowe:. 

"No member of the com.mzLssioners court or 

any county offlcer:shall- be, either directly or 

lndlrectlyi interested In any such,contract." 

While this artlclo applies only to contracts authorized by 

the precedlngartlcles in the Revlded Civil Statutes of-Texas;1925, 

as amended, and therefore does not apply'to county depository contracts, such article, together with Articles 2340 and 1649, Vernon's Civil Statutes, and Article 373; Vernon's Penal Code, estab- 

,,&&ehes the public policy of prohibiting any county officer from 

having any laterest In any contract, directly or Indirectly. 

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I 

Hon. J. M,.y Falkner, page 3 (C- 438) 

Attorney ,General's Opinions O-6280 (1944), o-2980 (1941), O-878 

i 1 

;;;z ~) v-381 (lg47), ~~-1241 (lg62), ~~-161 (1957) and WW-359 : 

. This public policy as above noted is of long standing 

since 1913), and the Legislature has not seen fit to change this 

public policy. Burroughs v. Lyles, 142 Tex. 704, 181 S.W.2d 570 

(1944) * 

You are therefore advised that a county depository play not be 

validly selected If such bank has on Its board of directors or among 

Its stockholders the county,Judge, county attorney, county clerk or 

county Measurer of the county. This long continued administrative 

construct$on Is entitled to great weight. 

In answer to your second question, If one of the above named 

officers becomes a stockholder or director of a bank after -Cn bank 

has been selected as a county depository, such action eon the part 

of the county offlcsr will not affect the validity of the contract 

or violate the officer!6 oath. The commissioners court would, however, be -prbcluded from renewing the depository contract so long 

as such offioer remains a stockholder or director of such bank. 

', 

SUMMARY 

A county depository may not be validly 

selected If such bank has on Its board of 

directors or among~its stockholders the county 

judge, county attorney, county clerk or county 

treasurer of the county. 

._ ~*irre~.ve.ry tuly, 

WAGGONER CARR 

Attorney General of Texas 

JR:ms 

By jki5AeP--’ 

Assistant 

APPROVED: 

OPINION COMUITTEE 

W. V. Geppert, Chairman 

Bob Flowers 

Jack Goodman 

Bon Uarrison 

Roy Johnson 

APPROVED FOR THE ATTORNEY GENERAL 

By! Stanton Stone 

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