THE ATNBRNEY GENERAL OF TEXAS
HonorableGee. H. Sheppard Comptrollerof Public Accounts Austin,Texas
Dear Sir Att'n: Mr. Cus Farrar
OpinionNo. O-1109 Re: Whether or not the Comptroller is authorizedto approve countydepositorypledge contracts securedby legallyi8sued warrantsof municipalities.
We are in receipt of your opinionrequestand quote from your letteras follows: "Article297, as amended,leavesout, . . .I and the legally issuedwarrantsof any of said municipalitiesso named.'
"This departmentnow has for approvalseveraldepositorybonds securedby, ' and the legallyissuedwarrantsof any of said municipalitiesso named.'
"Am I authorizedto approvesuch bonds?"
Articlei547, section (c) ( as amended,Acts 1937,Forty-fifthLegislature, page 1298, chapter484, section1) reads *s follows:
'In lieu of such personalbonds or suretybonds as above specified, said bankingcorporation,associationor individualbanker so se- lectedas county depository,msy pledgeand said depositorybank is authorizedto pledgewith the Commissioners' Court for the purposeof securingsuch county funds,securitiesof the following kind, in an amount equal to the amount of such countyfunds on depositin said depositorybank, and notes of the United States,securitiesof indebtednessof the United States,and other evidencesof indebtednessof the United States,when said evidencesof indebtednessare supportedby the full faith and credit of the United Statesof America and other bonds or other evidencesof indebtedness vhich sre guaranteed8s to both principal and interestby the United States Government;bonds of the State of Texas, or of any county,city, town, independentschooldistrict, commonschool districtor bonds issuedunder the Fenders1Farm Loan Act,or road districtbonds, bonds, pledgesor other securitiesissued Eon. Oeo. H. Sheppard,page #2 (O-1109)
by the Board of Regeuts of the Univarsityof Texan,bank acceptances of banks having a capitalstoekofnotl.esa thanFiveHuudred ThousandDollarm ($5OO,OOO)jnotes or bon& securedby mortgages insuredand debenturesirsuedby the BederalHousingAdminiatretor of the mated states Government,and bonda Issuedby municipal corporationain Texa8 . . ."
The type of securities that my be pledgedby countydepositorypledge contractsare unmteratedin the rtetuteabove qwted. "Legellyiarued warrantsof any of said munlcipalitiea so named' la not includedin the amendedrtatute(Acts 1937,Forty-fifthLegislature,pege 1298, chapter484, section1).
It is the opinionof this departmentthat only the securitiesenumerated in Article 2547 may be pledged. Therefore,we feel thct countydepository pledge contracta,includinglegallyissuedwarrantsof municipalities should not be approvedby the Comptrollerof Public Accounts.
Trustingthat this answer8your question we remain.
Very truly yours
A'Il!OlUiEfGNNNBALOF TEXAS3
a/ Cloud 0. Boothman
w Cloud 0. Boothmen Asri8tant
APPROVEDAIJO.11, 1939 o/ 0NRAl.Dc. M4NN ATTORNFZ GNNNRALOF TEXAS
APPROVNDOPINIONCOMMITTEE BP R. U. B. CHAIRMAll