CEO 78-73 -- October 20, 1978

CONFLICT OF INTEREST

TOWN DEPOSITING FUNDS IN BANK IN WHICH TOWN MAYOR IS A STOCKHOLDER

To: (Name withheld at the person's request.)

Prepared by: Phil Claypool

SUMMARY:

Reference is made to CEO 76-73. No prohibited conflict of interest under the Code of Ethics would be created were a town mayor to own stock in a bank in which the town has deposited its funds so long as the provisions of s. 136.02(5), F. S., are followed.

QUESTION:

Would a prohibited conflict of interest be created if I, a town mayor, owned stock in a bank in which the town has deposited its funds?

In your letter of inquiry you advise that you are the mayor of the Town of ____ and that you are a stockholder in a local bank. You also advise that, as mayor, you would not have a vote on the matter of whether town funds would be deposited in that bank.

See, please, CEO 76-73, an opinion in which we advised that a city councilman could be a director of a bank which served as a depository for city funds based upon the specific exemption contained in s. 136.02(5), F. S.

The rationale of that opinion is equally applicable to your inquiry, which, accordingly, is answered in the negative so long as the provisions of s. 136.02(5), regarding investigation and compliance with s. 136.02(1), are followed.