Case Information
*1 OFFICE OF THE AmORNEY GENERAL OF TEXAS
AUSTIN
gonorablc C. K. c'avm?es
state Auditor
&uM.n, Tccaf3
Dear Er . Cavnoset tter aekfng for 8
We eoknorl6~iige reo 1eglll opmion of thle Depart tea in the fallas- %ng quotation therefrom:
Nos. o-19& verago pro- 8 Corperation for county, road distriots 823 trict Pmls.
these tW0 0@1iOn8 lsrrs alla situations on and maintannnee of we request your opinion ined hewn. list of the State Schools
sity of Texas - B;ain College -
Schciol of U.nas 3nr3 W3tallurgy - El PZLSO, Texas
kertical Drancfi - Galveston, Texas John Scaly iiOspit81 - <;alVestOn, Tt?Xas *Bf;ri.CUltUX'irl and kl002mniGa1 College -
College Station, Tesas *branchesg
Honorable C. ti. I;avnese - page 2
Worth Texas Agrioultural College - Arlington, Texas
John TaMeton Agricultural College - Stephenville, Texas Brairie View State Normal Collage - Prairie View, Texas *Texas Technological College - Lubbook,
Texas 'Texas aollege of Arts and Industries -
Xingsville, Texae *Texas State College for Women - Denton,
Tf3x88
*State Teaohers Collegeeei
East Texas State Teachers College - Cmemeroe , Texas
North Texan State Teaohera College - Denton, Tex88
Sam Houston State Te8oher8 College - Buntsrllle, Texao
southwest Taxes State Tetiher8 College- San Marcos, Texae
Stephen F. Austin State Teachers College - Texas Nacogdmhos,
Sul Ross State Teaohere College - Alpine, Texas West Texas Stste Tesohers Oollege - CanyoU, Texas
*Bearing in mind that the Ualversity of Texas ati the Agrioultural arxl Yechanioal College both maintain Bramh Colleges which were oreated and which fun&don differently from the State Teachers Colleges , eta., we ask your opinion as to whether each of' the bank aacouuts maintained by the University of Texas and aa& of its Branuhes, by the Agrieul- tural aad bieChaniC81 College and eaah of its Branches and by each of the other l3tate Schools are proteoted in the amount of the Five Thousand ($5,000.00) Dollars guaranteed by the Federal Deposit Insurance Corporation. In this conneation there may be instances where the Ma%n College and one or more of its Branches deposit moneys in the same bank, which would naturally have a bearing On the queetion.
"To be a bit more explicit, eaah of,these inotltu- tions maintains frem one to fifteen bank accounts, the most usual titles of which are:
tionorablo C. ii. Cavness - page 3
"1. Oeneral Operating Fund
'~2. P'3tty C8Sh puad .3. Dormitory Sink& Fund
v4. Student Loan Pund
fl6. Plant Fund
'6. Agency Fund.9
We 8re Of the OpilliOn your questions as answered iu our Opinions Nos. o-1948 and o-lQ49, together with the further exposition contained in the euocseding paragraph, will meet your various situations.
Rvvon though an aououut is oarried in the name of 8 legal entity, nevertheless, if the 80eount shows to be a trust account, legally charged with 8 speoifla use or for a definite purpose, it 8 separate acaount, within the con- templation of the P. D. I. dot from one crarrlecl by the en- in its own right, the deposit being by the institution tity or entity in 8 separate oapaeity from that of Its general illdividil81 right.
This ObseXV8tiOn is pertinent to your enumerated *Fund* Accounts, oarried by the various institutions men- tioned by you. A separate fund in the sense that it is 8 trust, when deposited by the Lnetitution, ia separate 8tsomt. If, however, the breaking dam of the deposit into VlWiOUS depOSitS Of SO-08llSd fU!lIiS iS llISl't3ly 8 lUSt- ter of oonvenienae to the institution, then the rule just announed would, Of aourse, not 8pply. This opinl.on is, to be sure, general in its nature, but it is neaessarily so, sinoe your inquiry is general.
If a more spe~ifio opinion i8 required by you at any time, upon a presentation of the speoific case, we will be glad to advise further.
vsry truly yours ATTORHi33 GZNSRAL OF TEXALB OS-M