SELECTION OF DEPOSITORIES AND SUBDEPOSITORIES

(a) At the meeting at which banks are to be selected as county depositories, the commissioners court shall: (1) enter in the minutes of the court all applications filed with the county judge; (2) consider all applications; and (3) select the qualified applicants that offer the most favorable terms and conditions for the handling of the county funds. (b) The commissioners court may reject those applicants whose management or condition, in the opinion of the commissioners court, does not warrant placing county funds in their possession. (c) After selecting one or more county depositories, the commissioners court shall immediately return the certified checks of the rejected applicants. The commissioners court shall return the check of a successful applicant when the applicant executes and files a depository bond that is approved by the commissioners court. (d) The conflict of interests provisions of Section 131.903 apply to the selection of the depositories. (e) After selecting one or more subdepositories, the commissioners court shall immediately notify each selected applicant of its selection. Within 15 days, the selected applicant must file a bond or other security as approved by the commissioners court.