OFFICE OF THE AlTORNEY. GENERAL OF TEXAS 

AUSTIN 

705 
limrorable ree B. @'ebb - Page 2 

thtWefOP6, the mnt ai $OO@O.M) by the 

P. D. I. C. conpletely dlscha~ges its insurance liability. Vlth this, the tounty 

officials do not agree. 

*A list of all aooouuts 5nvolred Is 

attached hereto and mde a pwt hereof. 

The names of the several aecosnts are the 

ttame as appear on t&e bankbooks andthe 

reoords aitheC~u&yTrsaauver. Each OP 

these Docounts was arrrribd separately, and 

on a separate sheet by ths bank, also by 

the respective County oftiolals. This 

list Indicates which aocouuts rere carried 

by the Chnty Treqtrer, snd *blah were 

carried by the Tax AssessOr-COllectOr. 

l DM s the a umfIq n uty 8a mnltlt c a r - 

rle$ by the Qamty Treasuv'O.v, 0~ aavried 

by the 28x AssessOrZolleetor, hsld in 

tt’ust or Othemiws, enjOy sudi aatual 

separate owners&k+ as to entitle it to 

separate Simarazme wader the terms 0f 

the P.D. I. Q. ActF 

Some the 8go the writer had secaslop to investSgate the qtmstion presented By Jomr lettm, ant% atier date 

of lkr%h 20,~ZB22, as compel f0r t&e Paak%ug Co?miosfeuer, 

he advised t&at ~ffioe~ as POllorar 

Wr. B&reary (fmmsr Btmldq Corntiseioner) bupzirsd of the Redkwal Depodt Insurance Corpemtien as followst 

*VKndly inlorm us by return alrnuil the pmteetion af?OrdOd eauh polifieal subdivik&m aoe0unt POr 00gxt;y tnnds. 

Ror instame, we are a coppty depository 

faP Bell couwy, rexes, and rariotis road 

districts and mmmm seh~oal distriats in 

said county, aad it is our umderetzm%iq 

that each sepmate nnlt, seh001~dlstriet, 

or road distrfet amount is ptwteetsd up 

to $6000.00.* 

@The IQeoutlve Assistant to the fZomptroller of Curmmey replied by wire, as 

follovs$ 
mmwable Joe E. Vebb - Page S 
Bouorahle doe E. Webb - l?a.ge 4 

tion dlstriots sod the like are legal entitles eligible 

in all respects to have and to Claim the proteotien of 

the iusuranoe given by the Federal Deposit Insurauce 

Corporation. 

Vhere such legal entity ans a deposft aecmuut 

and the fact of ownership appears from the bauk*s books, 

there can be no doubt of its right to the Insurance 

thereof to the mariraun amount of the inairidual aocouut. 

hnother lustauce of such right, very closely 

ak3.u to, if not identloal nith the above, is the ease 

of an account by one depositor in trust for suother 

person or specific use. 

The Cipcn.itCourt of Appeals* opluionabme 

cited dlseusses especially this latter @am? of the 

problem. 

This well-reasoned opinion sakes clear that 

f%u%b on deposits in banks, representlug a trust, held 

In fact or in lav for a definite purpose, snd uot rithin the general control of the deposifov, are deposits 

for the account of the cestui qne trustent amI not 

those of the actual depositor , entltled ux&er the Federal 

Eeservt~ Act to the insurance afforded by the Federal Deposit Iusuranae Corporation to the e amount for individual accounts. 

The principles aunounaedinfhatdeoialon are 

oontrolllng of the questions propoun%ed by you. The 

essence of those principles is that the real ovuer of 

the account, whether it be a peliticel subd%visiou of 

the State or county, or a benefl&ary of a trust; aud 

where that ownership appears frem the bauk*s books, 

each such separate legal entity or trustee, as the ease 

my be, iS entitled t0 the siaXix~?IXIimur~e UpOn its 

or his account- These priuciples, vhen rightly applied, 

vi11 answer your inquiries above set forth. It would 

serve no useful purpose to elaborate upon suoh prinelpies to the point of cousldering the various respective 

funds listed and appended to your letter of Inquiry. 

As County Attorney you are quite familiar ulth these 

funds and their esaot status as to real ovnerehip, and 

are likewise capable of determinlng each of them in the 

light of this opinion, especially the cas5dy Opinion, 
SIonorablfs Joe 33. Webb - Page 19 

wb.iah appears t0 be the latest eXpOSitiO?I Of the law 

upon this question. 

WC have assumed, as stated by you in your letter, that *each of the accounts was carried seprately 

and on a sepsratc sheet by the bank." 

Trusting that this sill hate answered your Inquiries satlsfsctorilg, re are 

Yours very truly 

ATL'LTOBlaY GBmRAL OF 'IlmAs /e 

APPROVEDI"EB 15, 1940 

ATTORNEY GENERAL OF TEXAS