Honorable J. W. Edgar Opinion MO. M-777 

Commissioner of Education 

Austin, Texas Re: 

Dear Mr. Edgar: 

Ray the Anthony Independent 

School District select as 

its depository a bank 

located inthat portion 

of the town of Anthony 

which is located in the 

State of New Mexico; that 

portion of the town of 

Anthony located adjacent 

thereto, and in Texas, is 

in the District. 

In your recent letter you request this office to 

render an opinion on the following question: 

"Under the facts submitted, legally 

may the Anthony Independent School District 

change its current depository and select 

as a depository, in lieu thereof, a(nationa1) 

bank in Anthony, New Mexico?" 

The facts submitted in your letter are that the town 

of Anthony Is in the northwest corner of El Paso County and 

extends into New Mexico. The Anthony Independent School District boundaries, generally speaking, are coterminous with 

that portion of the town which is in Texas. The only bank 

in Anthony is located in that portion of the town that extends into Mew Mexico. The current depository for the school 

district is located in El Paso, Texas, and its two-year 

period to serve as such depository ends August 31, 1971. The 

school district's board of trustees has voted to make the 

First National Rank in Anthony, New Mexico its depository, 

provided the same is legally acceptable. It is our further 

understanding that the Anthony Independent School District 

selects its depository pursuant to Article 2832, Vernon's 

Civil Statutes. 

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Honorable J. W. Edgar, page 2 (M-777) 

here, are 

The provisions of Article 2832, which are applicable 

set out in part b,elow: 

"In any independent district of more 

than one hundred and fifty (150) scholastics, whether it be in a city which has 

assumed control of the schools within its 

limits, or a corporation for school purposes only, and whether organized under 

GeneralLaw or c~reatad by Special Act, 

the treasurer of the school fund ,&all .be 

that person or corporation who. offers 

s,atisfactory bond and the best bid of interest on the average dally balances or 

time deposits for the privilege of acting 

as such treasure,r. The treasurer when 

thus selected shall serve for a term of 

two (2) years and until his successor 

shall have been duly selected and qualified and he shall be required to give bond 

in an ,amount equal to the estimated amount 

of the total receipts coming annually Into 

his hands, when such bond is a personal 

bond; . . .' 

The only qualifications found In Article 2832 regard- _ . . . . _ . _ . ing the eligibility or one to serve as treasurer or aepository 

for funds of a school district are that such treasurer or depository be a person or corporation and that such person or 

corporation be able to offer satisfactory bond and the best bid 

of interest on the average daily balances or time deposits. 

Said Article contains no limitations that would require the 

treasurer or depository to be located within a particular geographical area. 

In the case of Donna Independent School District v. 

First State Bank of Donna. 227 SW 974 (Tex. civ. App. 1921 

no writ) f %e Court I di lsing Article 2771 (now Article 

2832) and Its applicztio?% the selection of a school district's depository said: 

"It Is clear from the law that the 

discretion is vested in the board of 

trustees of the selection of a depository. 

No one else is vested with that discretion, 

and when that discretion has been exercised 

and a depository appointed no one can question the authority of the board without 

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, . 

Honorable J. W. Edgar, page 3. (M-777) 

clearly proving an abuse of the discretion." 

A review of other statutes which govern the selection of depositories for state, county and city funds reveals 

that such statutes contain requirements that said depositories 

be located within a particular geographical area. See Articles 

2526, et. seq., 2544 et. seq., and 2559 et. seq., Vernon's 

Civil Statutes. Also the new School Depository Act, Chapter 

23, Subchapter E, Texas Education Code, which is permissive 

and optional with each school district in that it can elect to 

be governed by the provisions of said Depository Act or continue to select its depository in accordance with Article 2832, 

contains such a geographical limitation. It is the opinion of 

this office, therefore, that the Legislature by omitting a 

geographical restriction in Article 2832, evinces an intent 

that such a limitation should have no application, either actual or implied, to the selection of a school district's 

depository pursuant to said Article. 

Since we can find no other authority that would prohibit the Anthony Independent School District from selecting 

the First National Dank in Anthony, New Mexico to be its depository, it is the opinion of this office that said school 

district may make such bank its depositor provided the bank 

meets the other requirements of Article 2 6 32. 

In regard to your inquiry as to whether the Anthony 

Independent School District can terminate its present depository contract prior to its expiration date, it is the opinion 

of this office that Attorney General's Opinion No. 0-3837 

(1941) answers this question in the negative. 

We are mindful of the rule announced in Re ublic 

Rational Bank of Dallas v. C. H. Langdeau, 371 U. ?G?FiF-83 

. . 0 g L . Ed . 2d 523 t o the effect that national'banks 

may be sue; only in those siate courts in the county where the 

banks are located. This means, of course, that the school 

district could not successfully maintain a suit against the 

bank in the Texas courts. This is a factor that the school 

board would want to consider in exercising its discretion in 

the selection of a depository, However, we think that the 

presence of this factor would not, in itself, amount to an 

abuse of discretion in the selection of the depository in the 

state of New Mexico. 

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Honorable J. W. Edgar, page 4 (M-777) 

SUMMARY 

The Anthony Independent School District may select as Its depository pursuant 

to Article 2832, Vernon's Civil Statutes, 

a national bank located in that portion of 

the town of Anthony which is located in 

the State of New Mexico; however, said 

school district may not terminate its 

present depository contract prior to the 

date said contract expires. 

YOP G very truly, 

General of Texas 

Prepared by Ed Esquivel 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

W. E. Allen, Co-Chairman 

James McCoy 

Jerry Roberts 

Scott Garrison 

Harriet Burke 

MEADE F. GRIFFIN 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

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