E Y GENEJune 6, 1962 

Mr. Jack Fields 

County Attorney 

Calhoun County 

Port Lavaca, Texas 

Dear Mr. Fields: 

Opinion No. W-1347 

Re: Whether it is now too 

late for the Board of 

Navigation Commissioners 

of the Calhoun County 

Navigation District to 

advertise for a separate 

depository for the sole 

purpose of depositing 

its tax funds and related 

question. 

You request our opinion on whether It is now too late 

for the Board of Navigation Commissioners of the Calhoun County 

Navigation District to advertise for a separate depository for 

the sole purpose of depositing its tax funds and a related question. 

A summary of the relevant facts show that the depository for the navigation district was selected in 1955 by the 

navigation commissioners. Additionally and thereafter funds 

received from revenue bonds supported by a tonnage agreement 

and federal funds for construction of the Matagorda Ship 

Channel also have been placed in a depository selected by the 

Navigation Commissioners. The question concerns the depository 

for the tax funds, as in the selection of the depository for the 

funds from the revenue bonds no provision was made concerning the 

deposit of the tax funds. Further the Commissioners' Court of 

Calhoun County has not made any provision for the deposit of said 

funds and there are no bonds, warrants or other indebtedness to 

be secured by the taxes. 

The Calhoun County Navigation District was created 

by Senate Bill 302, Acts of the 53rd Legislature, 1953, Chapter 

195 page 535. In its creation‘it was authorized to exercise 

all of the rights, privileges and functions of a Navigation 

District created under the authority of Chapter 9, Title 128, 

Vernon's Civil Statutes of Texas, containing Articles 8198 

through 8263k, Vernon's Civil Statutes. Within Chapter g,Title 

128 there are Articles 8244 and 8244a pertaining to the selection 

of depositories. 
Mr. Jack Fields, page 2 (WW-1347) 

Article 8244, Vernon's Civil Statutes, states as 

follows: 

"The navigation and canal commissioners of 

all navigation districts, whether created pursuant to Section 52 of Article 3 or Section 59 

of Article 16 of the Constitution, shall select 

a depository or depositories for such district 

under the same provisions as are now or may 

hereafter be provided by law for the selection 

of the depository for the counties in this State, 

The navigation and canal commissioners in the 

selection of depositories shall act in the same 

capacity and perform the same duties as is incumbent upon the county judge and the members 

of the county commlssionerst court in the selection of the county depository. Such depository 

or depositories selected or to be selected for 

such navigation district shall have all the 

powers and duties in the execution of a depository 

bond or bonds and/or tn the pledging of collateral 

in lieu of or in addition to a personal surety 

or surety company bond as now provided by law or 

as may be provided by law in the selection of 

county depositories. When such depository or 

depositories have given bond or bonds as provided by law and the same have been approved 

by the navigation and canal commission, the 

county treasurer shall be req~uired to give only 

s:jch bond as the navigation and canal commissioners 

may require." 

Article 8244a, Vernon's Civil Statutes, states in 

part: 

"Section 1. This Act shall apply to all 

navigation districts heretofore or hereafter 

created under the provisions of Chapter 5, Acts 

39th L,gislature, Regular Session, 1925, as 

originally enacted or as subsequently amended 

or as hereafter amended, hereinafter referred 

to as 'Districts'. The term 'revenues' as 

used herein shall include all revenues, income, 

moneys, funds, or increment which, n:ay grow out 

of the ownership and operation of a District's 

improvements and facilities, but moneys derived 

from taxation are specifically excluded from 
Mr. Jack Fields, page 3 (1W-1347) 

said term and this Act shall have no application to tax funds." (h'mphasis added) 

It can be seen that Article 8244a does not apply to 

money derived from taxation; therefore Article 8244 applies 

and we must go to the statutes relating to the selection of 

county depositories. Provisions regulating the selection of 

county depositories are found in Articles 2544 through 2558a, 

Vernon's Civil Statutes. 

Article 2544, Vernon's Civil Statutes, provides: 

"The Commissioners Court of each co:lnty is 

hereby authorized and required at the Febr::ary 

iiegular 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 posting same at the courthouse door 

of said county." 

This has been inter reted 

E 

in Cave vLMontgomery, 274 

S.W.2d 855, 856 (Civ.App. 195 ) as meaning: 

II 

. . .The law, in effect, requires the Commissioners Court of the county to select a county depository every two years at its regular February term 

following each general election, as soon thereafter 

as wisdom, prudence and prevailing conditions will 

justify such action. . . .’ 

Article 2555, Vernon's Civil Statutes, provides: 

"If for any reason, no selection of a 

depository be made at the time provided by 

law, the Commissioners Court may at any 

subsequent time a:?ter twenty (201 days 1 notice 

select a depository or depositories in the 
Mr. Jack Fields, page 4 (WW-1347) 

manner provided for such selection at the 

regular time; and the depository or depositories so selected shall remain the depository 

or depositories until the next regular time for 

selecting a depository, unless the order selecting 

and naming such depository be revoked for lawful 

reasons." 

Therefore, the Board of Navigation Commissioners 

is authorized to receive bids and go about the selection of 

a depository just as if they were selecting it at the regular 

time. It Is the opinion of this office that this Article 

applies where the Board of Navigation Commissioners have not 

advertised to receive bids. Therefore, your first question 

is answered in the affirmative. The said Board may now by 

following the requirements of Article 2555, Vernon's Civil 

Statutes, select a new depository. 

The answer to your second question, i.e., whether 

the funds may be withdrawn from the bank in which the funds 

are presently on deposit, in the event another bank is then 

selected as the depository, is also In the affirmative. The 

law requires the selection of a depository every two years. 

Article 2544, Vernon's Civil Statutes, and Cave.v. Montgomery, 

supra. 

"Public officers are but agents whose 

authority is defined and limited by the law 

and therefore known to all persons dealing 

with them. Their acts beyond their lawful 

powers are ineffectual to bind the public 

which thev reoresent. and their neelect and 

lathes can seidom affect public rights." 

Hale County, Texas v. American Indemnity, 

b3 F2d 2'r'5 (1933) . 

It is our opinion that merely allowing the funds to stay in a 

depository after the time for the new selection does not estop 

the navigation commissioners from withdrawing the fiends. Since 

Article 2555, Vernon's Civil Statutes,,authorizes the selection 

of a depository after the time when the selection is required 

by law to be made, then surely it is reasonable to assume that 

the commissioners have the authority to withdraw the funds and 

re-deposit them in the depository that they have been authorized 

to select. Therefore, it is the opinion of this office that the 

fY;nds may be withdrawn from the present depository and deposited 

in the newly selected depository, assuming the statutes relating 

to bonds and approval of such bonds are followed. 
Mr. Jack Fields, Page 5 (W'N-1347) 

SUMMARY 

The Board of Navigation Commissioners is 

authorized by Article 2555, Vernonrs Civil 

Statutes, to advertise for a depository 

of its tax fund where such a selection 

has not been made since 1955. 

The Board of Navigation Commissioners of 

Calhoun Navigation District may withdraw 

the tax funds from the present depository 

and deposit them In whatever qualifying 

depository It selects. 

WILL~WILSON 

Attorney General of Texas 

JHH:mkh 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

Arthur Sandlln 

Robert S&field 

Elmer McVey 

Bill Allen 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Leonard Passmore