OWNE 

Honorable Gee. H. Sheppard 

Comptr~llsr of Public Accounts 

Awti4, Text 

'I 

Dew Mr. Sheppandr Opinion No. O-3236 

Rar mether the oounty commissioners' 

court may select I bank as a county depositcrjr, under the stated ciroumstanoes. 

This i8 ia reply to your lett~ 81 February 26, 1941, propounding 

the fellwing qurstioa for an opinion: 

"I would call tc your attnntion the County Depository Pledge contract executed by the First National Bank of Fabans, Texas, to ccwar deposits in the 

amount OF $SS,OOO.OO, whioh sum is 04 time deposit, and onwhich sum interest is paid, This is only a small fraction, of course, of the amount cf the 

ocunty's deposit. A similar contract wxs executed two years ago with the 

First Eational Bask of Fabens, however, this year, because of illness on 

the part ef the President of the bank, he failed to notioe the publiortian 

calling for bids as required by Article 2544 of the Revised Civil Stqtitss, 

and oonsequeatly did net subnit a bid to the county for a part of its deposits. The other banks do not pay interest on deposits, and for that 

MPOOI the ceunty desired to leave thio part of its deposits with the First 

NaticnP!. Bank of FqLmno, if it could be legally done. In view of the fact 

that P bid ws not submitted by the bank and a oertified check was not 

deposited a8 required by law, there ~a6 scme doubt in my mind as to whether 

such a contract cculd be exeouted, and the Court advised me to call the 

matter to your attention in submitting the contract to you for approval. 

If bu -virtue of the execution of the oentract and deposit of the pledges, 

the oontraot will be binding upon the bpnk and is acceptable by you, the 

Court desires to have it aoceptsd." 

Chapter two of Title 47, Vernon's Civil Statutes, dealing with 

county depositories, provides for the publioation of notice that a contract 

with a ooluty depcsitory is to be made (Art. 2544); that any banking ccrporaticn, association, or individual banker desiring to be designated as 

caunty depository shall make and deliver to the County Judge an application 

applying for suoh funds, and shall state the amount of paid-up capital 

mtook and permanent surplus of the bank, and other like requirements (Art. 

2544)~ that *it shall be the duty of the oommissioners' court at ten 

o'clock A.&f. on the first day of each term at which bnke are to be selected as county depositories, to consider all applications filed r+th 

the, County Judge,, cause suoh applications to be entered uponthe minutes 

of the ccurt, and to select those applicants that are acceptable and who 

offer the most favorable terms and conditions for the haadliag of suoh 
Ron. Gee. Sheppard, pace 2 (O-3238) 

fund and having the power to rejeot thorr whoer management or oondition, 

in the opinion of the oaurt, does act warrant phoing of ocunty funds in 

their poscerei~n~' (Art0 2546), 

The mtatute thus quoted clearly requiree that oounty drpositorisr 

be seleoted by the oomniseioners' oourt from thosd banking inrtitutiona 

who have regularly made l pplioation in l ooor da awith o e the rtatuter. 

The oirourmstanoes stated by youwith r*f?renoe to the derirability 

of renewing the depository contract with the Fire* Nation81 Bmk of Fabena, 

however, persuasive from a bueineen etandpolnt cannot justify a doparture 

from the rule of the statute. 

We haw assmned thet the court har ixfore it a bid or bide fraan 

whioh it oan sale& a county deponitory, fer otherwire Artiole 2650 of 

the Revised Civil Statutes provides the proper prooedure, 

APPROVED VAFt 14, 1941 

/I/ GROVER SELLEm! 

FIRST ASSISTANT 

ATTORNEY GENI!,Ri% 

OS-MR-egw 

Very truly youre 

ATTORIPSY GENERAL OF TEXkS 

By /a/ Ooie Spear 

Ooir Spoor 

Asslatant 

Approved 

Opinion Cammitts 

ByBWB 

Chairman 

,