Alabama Attorney General Opinion 1979-0177

79- owin 1'15 LEE L. MALE DEPUTY ATTORNEY GENERAL CHARLES A. GRADDICK ATTORNEY GENERAL STATE OF ALABAMA OFFICE OF THE ATTORNEY GENERAL WILLIAM VI SENORS. JR GALLI/1111E ASSISTANT WALTER S. TURNER LIME. ASS.bTAN r ATTORNEY GENERA!. .1Ar1e Nentas AOMIN.StMATIVE ASSISTANT MAY 3 1979 DMINIIITIVAT IV* BUILDING Is NORTH UNION Strecirr MONTGOMERY, ALARA/EA 361E0 AREA 12051. 1134-51110 Dr. James H. McClendon Chairman St. Clair County Commission Courthouse Ashville, Alabama 35953 Conflicts of Interest - County Commissions - Banks County funds can be placed in bank where county commissioner owns less than 10% of stock in bank. Dear Dr. McClendon: Reference is made to your request for an opinion from the Attorney General as to whether funds of St. Clair County can he placed in various banks in the county where you, the Chairman of the County Commission, are a stockholder. In your letter- you stated that you own no more than ten perceht (10%) of the stock and you are not an officer, employee or partner of any banking institution of the county. Code of Alabama 1975, Section 41-16-60 states: "No member or officer of ... the county commissions ... shall be financially interested or have any personal beneficial interest, either directly or indirectly, in the purchase of or contract for Dr. James H. McClendon Page 2 any personal property or contractual service, nor shall any person willfully make any purchase or award any contract in violation of the provisions of this article." In keeping with this section, it is the general rule that funds of a public board should not be placed in a bank in which a member of the public board owns ten percent or more of the bank's stock or in which the total shares owned by board members amounts to fifteen percent or more. Therefore, if you own less than ten percent of the stock of a bank, county funds may be placed in it, but if you own ten percent or more of the stock the bank county funds cannot be placed in it. If our office can be of further assistance, please do not hesitate to call on us. Sincerely, CHARLES A. GRADDICK Attorney General - 67\dir2 LYND F. KNIGHT Assistant Attorney General LPK;mj