Hon. Tom Blackwell DistrictAttorney 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 officeyou have requested an opinion in regard to the above stated matter. Specificallyyou 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 contractwith anybankinq 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

"Anybankins corDoration. aseociat~on, or individual banker in such county desiring

### Xon.TomBlackwell,

### 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 

### (Rnphaaioadded.) Article 2546,Vernon's Civil Statutes, in quote&, In part, a8 follower

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

### firstday **of** each term at which banks are to be eelectod as county depositories, to conaider all applications . . .and to select those applicants 

### thatare 

### acceptable . .'. ." (Emphasis

### added. 1 Article,2549, Vernon'8 Civil Statutes, is quoted, in part, aa follower

**“ As**  soon as saidbond be **given** and 

### approvedby the Coxaissionere Court, and the Comptroller, an order shallbe made

. . .designating 

### suchbankinscormration, ~aaociation or individualbanker, 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"bankingcorporation,association privatebanker- did not authorize a conmissioners court to select any individual, partnership, or group of individuals 

### whatsoeverother than a banking corporation, aeeociation or privatebank **aa** e depository 

### forcounty f\urdsb

The following 

### languageie **found** 

### in the **prior** opinio YIt is obvious the etatutee 

### contsaaplate that 

### the countydepositorymustbe abanking inetltution. Ifthinwere notclearmmugh fraathe ntatutom thumelvesr 

### itwould **necem madly**  **k trua**  

### becaum **the** 

### bus&nom **of** 

### a **-93-**. - 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 ofVernon's Civil Statutes. truly yours,

CCJhnkhrra orney General of Texas Prepared by James C. McCoy Assistant Attorney General

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