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HonorableGee. H. Sheppard Comptr~llsr of PublicAccounts 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:

"Iwould call tc your attnntionthe County DepositoryPledge contract executed by the FirstNational 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'sdeposit. A similar contractwxs executedtwo years agowith the First EationalBask 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 oonsequeatlydid 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 ceuntydesired to leave thio part of its depositswith the First NaticnP!.

Bank of FqLmno, if it could be legally done. Inview of the fact that P bid ws not submittedby the bank and a oertified checkwas not deposited a8 requiredby law, there ~a6 scme doubt inmy mind as towhether sucha contract cculdbe exeouted, and the Court advisedme to call the matter to your attention in submitting the contractto you for approval. If bu -virtue

of the execution of the oentract and deposit of the pledges, the oontraotwill be bindingupon 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 countydepositories,provides for the publioation of notice that a contract with a oolutydepcsitory is to be made (Art. 2544); that any banking ccrporaticn,association, or individual banker desiring to be designatedas caunty depository shallmake and deliver to the County Judge an application applying for suoh funds, and shall state the amount ofpaid-up capital mtook andpermanent 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 applicationsto be entered uponthe minutes of the ccurt, and to select those applicants thatare acceptableand who offer the most favorableterms and conditions for the haadliag of suohRon. 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 seleotedby the oomniseioners' oourtfrom thosd banking inrtitutiona who have regularlymade 

### l pplioation in looorda aoe with the rtatuter.

The oirourmstanoes stated by youwith r*f?renoe to the derirability of renewing the depository contractwith 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 otherwireArtiole 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

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