Hon. Tom Blackwell 

District Attorney 

Travis County 

Austin, Texas 

Dear Sir: 

Opinion No. M-22 

Re: Whether a Savings and 

Loan Corporation can 

serve as a county 

depository. 

By a recent letter to this office you have requested an opinion in regard to the above stated matter. 

Specifically you have asked the following question. 

"Under the Constitution, Statutes and 

laws of the State of Texas does a Savings 

and Loan Corporation (State or Federal) qualify 

as a depository for official county funds?" 

Articles 2544 through 2559a. Vernon's Civil Statutes, 

provide the authority and method for counties to establish a 

depository or depositories for county money. 

Article 2544, Vernon's Civil Statutes, is quoted, 

in part, as follows: 

The Conugissloners Court of each county 

is hereby authorized and required . . . to 

enter into a contract with any bankinq coruoration. association or iridivldual bbnker in such 

county for the depositing of the public fund5 

of'such county in such bank or banks. . . ." 

,(Emphasis added.) 

Article 2545, Vernon's Civil Statutes, is quoted, 

part, as follower 

"Any bankins corDoration. aseociat~on, 

or individual banker in such county desiring 
Xon. Tom Blackwell, page 2 W-22) 

to be designated as county depository ahall 

make and deliver to the County Judge an appllcatlon applying for such funds . . . .I 

(Rnphaaio added.) 

Article 2546, Vernon's Civil Statutes, in quote&, 

In part, a8 follower 

"It shall be the duty of the Conmlasioners Court at ten o'clock a.m. on the 

first day of each term at which banks are 

to be eelectod as county depositories, to 

conaider all applications . . . and to select 

those applicants that are acceptable . . '. ." 

(Emphasis added. 1 

Article,2549, Vernon'8 Civil Statutes, is quoted, 

in part, aa follower 

“As soon as said bond be given and 

approved by the Coxaissionere Court, and 

the Comptroller, an order shall be made 

. . . designating such bankins cormration, 

~aaociation or individual banker, as a 

depository for the funds of said county . 

. . . * (IPnphaais added.) 

In a prior opinion from this office (V-120, 1947) i 

wae held that the language "banking corporation, association 

private banker- did not authorize a conmissioners court to 

select any individual, partnership, or group of individuals 

whatsoever other than a banking corporation, aeeociation or 

private bank aa e depository for county f\urdsb 

The following language ie found in the prior opinio 

YIt is obvious the etatutee contsaaplate 

that the county depository must be a banking 

inetltution. If thin were not clear mmugh 

fraa the ntatutom thumelvesr it would necemmadly k trua becaum the bus&nom of a 

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Hon. Tom Blackwell, page 2 (M-22) 

depository of county funds is essentially ' 

the accepting of deposits and paying checks, 

which constitutes the one unfailing exclusive 

banking function. 

"You are therefore advised that the 

Commissioners Court is not authorized to 

select, as a county depository, any pexson, 

partnership, association or group of persons 

whatsoever other than a duly organized banking institution, association or private 

banker with banking privileges in this 

stats." 

Based upon the foregoing and an analysis of the 

relevant statutes, it is the opinion of this office that a 

savings and loan corporation does not qualify as a depository 

for official county funds. 

SUMMARY 

Savings and Loan Corporation5 do not qualify 

as county depositories under the requirement5 of 

Articles 2544 et seqi of Vernon's Civil Statutes. 

truly yours, 

CCJhnkhrra 

orney General of Texas 

Prepared by James C. McCoy 

Assistant Attorney General 

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