MISSISSIPPI ETHICS COMMISSION
ADVISORY OPINIONS
BANKS
95-038-E     A state entity which has as a primary responsibility the approval of financing for projects that create jobs and provide investment in the state may receive as an appointment to its board of directors an individual who serves on the advisory board of a large bank that conducts business with the state entity, provided the individual's interest in the bank is "de minimis." [2, B]
95-073-E     A board member of a state district appointment to an advisory board of a bank that serves as a depository of the district results in an interest in any contracts between the bank and the district entered into during his present term or any future terms and for one year thereafter in violation of Constitutional Section 109 and Code Section 25-4-105(2). Caution and recusal, may be de minimis. [19, 2, B, K]
95-102-E     A chancery clerk's entering into a consultant contract with one of the county's depositories violates Section 25-4-105(3)(a). The chancery clerk also was cautioned regarding Section 25-4-105(1) and (5). [2, 26]
95-104-E     1. A chancery clerk-elect may not retain a position on the board of directors of the county's depository as to do so is prohibited by Section 25-4-105(3)(a).
2. A chancery clerk/county administrator may not serve on the board of director's of the county's depository as to do so is prohibited by Section 25-4-105(3)(a). [2, 9,11,26]
95-105-E     The exception found in Section 25-4-105(4)(a) allows an officer of a bank serving as a municipality's depository to serve on the municipality's planning commission. The exception found in Section 25-4-105(4)(a) does not include a bank serving as a municipality's investment broker, paying agent, bond registrar, trustee and financial advisor. [2, 4, 5, 7, H]
95-133-E     The corporation addressed below meets the definition of "government" as set forth in Code Section 25-4-103 (g)(v).
1. A corporation's maintaining of a bank account/deposit agreement with a bank in which any member of its board holds corporate stock or is an employee would be prohibited by Constitutional Section 109 and Code Section 25-4-105(2).
2. The corporation's attorney's serving as chairman and as a member of the board of directors of the corporation's depository is prohibited by Code Section 25-4-105(3)(a) if the attorney has a "material financial interest" in the bank. [1, 2, 19]
95-147-E     A county supervisor-elect may not be employed with the bank serving as the county's depository. [2, 14, M]
95-149-E     A county may have as its depository a bank employing a supervisor-elect's son as long as they are financially independent from each other and the supervisor-elect properly recuses himself [2, 14, 31, M]
94-010-E     A president of a university may become a member of the Board of Directors of a bank which does not do business with the university.
94-017-E     A County Health Foundation may choose as a depository a bank which employees a supervisor's spouse when the supervisor is not a member of the Foundation.
94-048-E     An employee of a bank depository of a school district may not be a member of the school district board.

94-098-E     1. A board member of a political subdivision of the state may not continue to prepare tax returns for an applicant which is to be considered by the Board.

2. A board member of a political subdivision of the state may not continue to prepare tax returns, financial projections, financial audits, etc., for a company approved for a bond issue or other financing by the Board.

3. A board member and his firm may perform professional services for a bank (auditing) which supplies a Letter of Credit to an applicant to guarantee the debt.

4. A board member may not have any professional relationship of any nature with a company participating in financing by the political subdivision.

94-101-E     A District Board of Commissioners may enter into a contractual relationship with a bank as a District Board member, now deceased, was simultaneously a Director of he bank.
94-103-E     A contract may exist between a bank and a state agency (System) and the spouse of the System's Deputy Director of Membership Services is an employee and officer of the bank.
94-132-E     A municipal governing authority may not select as its depository a bank employing as a teller a council member's spouse.
94-152-E     A city may not use as its city depository a bank which has as one of its directors a newly elected Selectman.
94-157-E     A state legislator may or may not accept certain employment positions and/or certain employment relationships with a bank/financial institution, depending on the circumstances.
93-016-E     An Assistant in charge of a division of an official State entity having regulations applicable to the banking industry as well as most other corporations may serve on the board of a bank within the state.
93-031-E     An officer of a bank depository of a town may become an Alderman of the town, provided...
93-052-ER     Involves a school district contracting with several banks in which one of the school board members is interested. Some are prohibited, some are "de minimis."
93-052-E     Involves a school district contracting with several banks in which one of the school board members is interested. Some are prohibited, some are "de minimis."
93-071-E     A city may contract with a bank with which one of its Aldermen is affiliated, provided...
93-081-E     Members of a Board of the Mississippi Business Finance Corporation (MBFC) who are also bankers may participate in loans of the Agribusiness Enterprise Loan Program which is authorized and administered by the Mississippi Department of Economic and Community Development (MDECD).

93-094-E     1. An attorney for a Board of Supervisors may represent the Board of Supervisors when his law partner represents a town within the county which contracts with the county.

2. An attorney for a Board of Supervisors may be a compensated member of the board and minor stockholder of a bank depository in the county.

93-095-E     A Municipal Judge may be a member of the Board of Directors and a stockholder of a bank depository of the same city.
93-098-E     A governmental water management district (WMD) may not contract with a bank in which one of the WMD board members owns less than 1% of the stock.
93-100-E     A city may not contract with a bank which employs as an officer the spouse of its Mayor.

1. A Commissioner of a state Port Authority may own stock in a corporation which is partly owned by an individual who also owns a security firm (a separate corporation) which contracts with the Port Authority.

2. A Commissioner of the Port Authority may not own 200 shares of casino stock valued at approximately $8,000. (The casino contracts with the Part Authority.)

3. The public purchase and trading of the casino stock during 1993 by one Commissioner resulting in profits of approximately $28,795.43, current holdings of 500 shares with an unrealized gain of $8,091, and 600 shares in an IRA of a dependent relative with an unrealized gain of $12,070, does constitute a violation of the Ethics Laws.

4. A vice president and member of the board of directors of a bank depository of the casino may serve as Commissioner of the Part Authority, provided..

93-154-E     The spouse of a Superintendent of a school district may become employed by a bank depository of the school district, provided...

93-158-E     A Legislator and/or his prospective employer may not participate in state bond programs.
93-173-E     An Industrial Development Authority (IDA) may not contract with a bank to sell it land when one of the IDA Commissioners is employed by the bank.
93-178-E     The respective boards of two state or local government political subdivisions may select as a bank depository one of two banks; one of which has an attorney as a member of its Advisory Board who represents the political subdivisions, and the other of which has as a member if its Advisory Board a law partner of the same attorney, provided...
93-182-E     A governmental entity may approve or modify a lease of a facility from a private corporation when .12% of the capital stock valued at $3,000 is owned by one member of the board of the government body who also receives from the bank approximately $500 per year in interest from a certificate of deposit. However, the situation would result in a "de minimis" interest on the part of the board member.

93-220-E     1. A county Port Commission may not do business with a bank of which one of the Port Commissioners is an officer.

2. A county Port Commission may not do business with a bank which employs the spouse of one of the Commission members.

3. A retired Commissioner holds a "de minimis" interest in a bank. The commission should not do business with the bank until one (1) year has
expired since the commissioner retired.

92-027-E     A public entity contracts for custodial services with a bank:

1. The spouse of a public servant/employee of the public entity may be a senior vice-president of a department of the bank, the public servant being legal counsel for the pubic entity. Caution: 25-4-105(1) and (5).

2. The spouse of a public servant/employee of the public entity may be a commercial loan officer of the bank, having no involvement in the bid or contract, the public servant being involved in evaluating bank bids by extracting information for use by the public entity's trustees. Caution: 25-4-105(1) and (5).
3. Not enough info to render a decision.
92-033-E     A mayor under a mayor-council form of government may own less than a material financial interest in stock of a depository of the city. De minimis interest.
92-084-E     A supervisor may not receive a loan from a multi-county planning and development district. Violations: Section 109; 25-4-105(2).
92-094-E     An officer of a state department may have a loan with an entity which his department regulates but which loan originated before his term of office.
92-105-E     A community hospital may not contract with a bank in which one of the hospital trustees owns less than 1% of the stock which investment is valued at over $80,000. Violations: Section 109; 25-4-105(2).
92-142-E     Three banks may contract with a public hospital to either provide services and/or serve as depositories when one or more trustees of the hospital possess less than a material financial interest in any of the banks. Caution: 25-4-105(1).
92-146-E     A county may not contract with a bank as a depository when one of the supervisors receives $6,600 annually as an advisory board member of the bank. Violations: Section 109; 25-4-105(2).
92-164-E     A mayor of a city having a mayor and board of aldermen may be a member of a bank advisory board, receiving less than $1000 per year and having no stock ownership, which bank is a depository of the city. Less than a material financial interest. Caution: 25-4-105(1).
92-172-E     A bank branch may not continue as a depository of a city should the branch bank's assistant vice president/loan secretary be elected to the board of councilmen of the same city. Violations: Section 109; 25-4-105(2).
92-180-E     A bank may not be a depository of a city when the spouse of an alderman is employed by the bank. Violations: 25-4-105(2); Section 109.
92-229-E     A bank may not purchase bonds of a public regional airport authority, said purchase being a secondary purchase following an original issuance to another institution, when a member of the board of the airport authority has a material financial interest in the bank. Violations: Section 109; 25-4-105(2).
91-018-E     1. An insurance company may not sell insurance to a city when an alderman is a commissioned salesman of the same company. Violations: 25-4-105(2); 25-4- 105(3)(a).
2. A city may do business with a bank, the president and principal stockholder of which also owns the insurance company employing the alderman. Caution: 25-4-101.
91-025-E     A county supervisor may serve as an advisory board member of a local bank depository, as the interest is de minimis, and may be too minor to attract the attention of the courts.
91-049-E     A school board may contract with a bank when a school board member owns 3/10 of 1% of the stock of the bank depository and receives $2,670.00 annually in dividends, when neither he nor a "relative" is an officer, director, or employee of the bank. De minimis interest. Caution: 25-4-105(1).
91-054-E     A town may not contract with a bank when the spouse of an alderman is an assistant vice-president of the bank. Violations: Section 109; 25-4-105(2).
91-061-E     1. A county may not contract with a bank when a member of the board of supervisors is a director of the bank. Violations: Section 109; 25-4-105(2).
2. A county may contract with a bank when a member of the board of supervisors is a stockholder of the bank. Caution: 25-4-105(1).
91-083-E     A bank may not bid no bonds issued for a county's economic development district (EDD) when a bank officer is simultaneously a trustee for the EDD. Violations: Section 109; 25-4-105(2).
91-093-E     A Legislator may be a salesman who contracts with banks, loan companies, etc., for a private corporation. Caution: 25-4-105(1).
91-125-E     An attorney may not represent multi-governmental agencies within one geographic area and also a bank which does business with the county of which same attorney represents the board of supervisors. Possible violations: Section 109; 25-4-105(1), (3)(d) and (5).
90-014-E     A trustee of a regional library system may own stock in and have family ties to a bank which is a depository of the same library system, provided the interest is de minimis. Violation does occur, but is probably too small to attract the attention of the courts.
90-015-E     A special municipal separate school district may not select as its depository a bank for which one of the trustees serves as a director and in which the trustee owns stock, the father of the supervisor also owning stock in and being a director of same bank. Violations: Section 109; 25-4-105(2); 25-4-105(1).
90-022-E     The board of the Institutions of Higher Learning is prohibited from using as a bank depository pursuant to Section 37-101-15 or 37-101-103 during the term and from one year following the term of a board member who is employed by the bank. Violations: Section 109; 25-4-105(2).
90-028-E     A school board member may not simultaneously be a major stockholder in a bank depository of the same school district. Violations: Section 109; 25-4-105(2).
90-045-E     A member of the board of a public water district may own a de minimis interest in a bank depository of same authority, without attracting the courts' attention to the Section 109 violation.
90-055-E     A Legislator may not accept employment as a consultant for a corporation which contracts with several departments of the state. Violations: Section 109; 25-4-105(2).
90-099-E     A state regional commission may not contract with a bank depository, the president of which is simultaneously a member of the state commission. Violations: Section 109; 25-4-105(2); 25-4-105(1).
90-108-E     A city may not contract with either of two banks, the mayor being a chairman of one, and an alderman and his/her spouse being employed by the other. Violations: Section 109; 25-4-105(2).
90-109-E     A Legislator may serve as legal counsel for a Farm Credit Bank or a Federal Land Bank.
89-26-E     A senior vice president of a local bank depository of a city housing authority may not simultaneously serve as a commissioner/board member of the housing authority. Violations: Section 109; 25-4-101, et. seq.
89-31-E     An administrator of a county hospital may not simultaneously serve as a paid member of an advisory board of a bank depository of the hospital. Violations: 25-4-101; 25-4-105(3)(a).
89-58-E     The ownership of 788 shares of cumulative convertible preferred stock, approximately 6/10 of 1% of the total shares of that stock paying $1,576.00 per year in dividends does constitute a "material financial interest" on the part of a hospital trustee/ bank depository stockholder. Violations: Section 109; 25-4- 105(2). Commission suggests ways in which the violation may be eliminated.
89-62-E     An attorney for a school district should refrain from recommending to the district's board of trustees the selection of bank depositories and/or placement of school funds in a bank for which he is council, a director, and stockholder. Violation: 25-4-105(1).
89-67-E     1. A member of a state commission may not participate through his corporation in sponsorship of improvements on state property in return for exclusive signage (publicity). Violations: Section 109; 25-4-105(2); possibly 25-4-105(1) and (3)(a).
89-82-E     A board of supervisors may select as a depository a bank which employs the fiancé (soon-to-be spouse) of the county clerk. Caution: 25-4-105(1).
89-96-E     1. An insurance company previously owned by an alderman-elect may do business with the city after the alderman-elect takes office.
a. The final payment of $10,000 to the alderman-elect after he takes office and pursuant to a prior contract of sale does not violate the ethics revisions.
b. The alderman may not become a commissioned salesperson for the insurance company he previously owned, when the company contracts with the city. Violations: 25-4-105(3)(a); 25-4-105(2).
2. An alderman is cautioned against serving as a compensated member of an advisory board for a bank depository of the city. Possible violations: Section 109; 25-4-105(2).
3. An alderman may hold a de minimis interest in a city bank depository. Reference 88-06-E.
89-104-E     The board of trustees of a consolidated county school district may not contract with a bank as its depository when one of the trustees has a material financial interest in said bank. Violations: Section 109; 25-4-105(2).
89-117-E     1. The Mississippi Ethics in Government laws do not affect the continuance of a contract executed by a prior board of aldermen which contract extends into the term of a newly elected mayor and board of aldermen, the new mayor having less than a material financial interest in the contract.
2. A board of aldermen may designate as a bank depository a bank in which the mayor holds less than a material financial interest. Caution: recusal.
89-119-E     1. A regional airport authority (RAA) may not purchase from a company of which a newly appointed board ember of the RAA is president. Violations; Section 109 25-4-105(2); 25-4-105(3)(a). References: 89-118-E; 88-156-E.
2. An RAA may not contract with a bank depository, a vice-president of which is a newly appointed board member of the RAA. Violations: Section 109; 25-4-105(2). References: 88-76-E.
Possible violations of both 1 and 2: 25-4-105(1).
89-144-E     Local bank presidents serving as commissioners of a county economic development district (EDD) may not bid on bonds or other forms of indebtedness issued for and at the request of the EDD by a board of supervisors. Violations: Section 109; 25-4-105(2). Reference: 89-49-E.
88-58-E     The ownership of 788 shares of cumulative convertible preferred stock, approximately 6/10 of 1% of the total shares of that stock paying $1,576.00 per year in dividends does constitute a "material financial interest" on the part of a hospital trustee/bank depository stockholder. Violations: Section 109; 25-4-105(2). Commission suggests ways in which the violation may be eliminated.
89-62-E     An attorney for a school district should refrain from recommending to the district's board of trustees the selection of bank depositories and/or placement of school funds in a bank for which he is council, a director, and stockholder. Violation: 25-4-105(1).
89-67-E     1. A member of a state commission may not participate through his corporation in sponsorship of improvements on state property in return for exclusive signage (publicity). Violations: Section 109; 25-4-105(2); possibly 25-4-105(1) and (3)(a).
89-82-E     A board of supervisors may select as a depository a bank which employs the fiancé (soon-to-be spouse) of the county clerk. Caution: 25-105(1).
89-96-E     1. An insurance company previously owned by an alderman-elect may do business with the city after the alderman-elect takes office.
a. The final payment of $10,000 to the alderman-elect after he takes office and pursuant to a prior contract of sale does not violate the ethics provisions.
b. The alderman may not become a commissioned salesperson for the insurance company he previously owned, when the company contracts with the city. Violations: 25-4-105(3)(a); 25-4-105(2).
2. An alderman is cautioned against serving as a compensated member of an advisory board for a bank depository of the city. Possible violations: Section 109; 25-4-105(2).
3. An alderman may hold a de minimis interest in a city bank depository. Reference 88-06-E.
89-104-E     The board of trustees of a consolidated county school district may not contract with a bank as its depository when one of the trustees has a material financial interest in said bank. Violations: Section 109; 25-4-105(2).
89-117-E     1. The Mississippi Ethics in Government laws do not affect the continuance of a contract executed by a prior board of aldermen which contract extends into the term of a newly elected mayor and board of aldermen, the new mayor having less than a material financial interest in the contract.
2. A board of aldermen may designate as a bank depository a bank in which the mayor holds less than a material financial interest. Caution: recusal.
89-119-E     1. A regional airport authority (RAA) may not purchase from a company of which a newly appointed board ember of the RAA is president. Violations; Section 109; 25-4-105(2); 25-4-1 05(3)(a). References: 89-11 8-E; 88-1 56-E.
2. An RAA may not contract with a bank depository, a vice-president of which is a newly appointed board member of the RAA. Violations: Section 109; 25-4-105(2). References: 88-76-E.
Possible violations of both 1 and 2: 25-4-105(1).
89-144-E     Local bank presidents serving as commissioners of a county economic development district (EDD) may not bid on bonds or other forms of indebtedness issued for and at the request of the EDD by a board of supervisors. Violations: Section 109; 25-4-105(2). Reference: 89-49-E.
88-16-E     A board of aldermen may not contract with a bank in which two of the aldermen have a material financial interest. Recusal does not remove violations. Violations: Section 109; 25-4-1030).
88-44-E     A hospital system board of trustees may contract with a bank of which one of the trustees holds a de minimis interest. Violation of Section 109 may be too minor to attract the attention of the courts.
88-83-E     A hospital system may not contract with a bank when a member of the board of trustees of the hospital system has a financial interest in the bank. Violations: Section 109; 25-4-105(2)(f).
88-100-E     A hospital board may not contract with a bank of which one of the trustees is a stockholder, having a material financial interest in the bank. Violation: 25-4-105(2)(a).
88-116-E     The appointed commissioner of the department of banking and consumer finance may, with his wife, hold accounts in state-chartered and national banks; may liquidate his loans to state-chartered banks; may hold a lease with GMAC; may own stock in a state-chartered bank and national banks. The department does not enter into contracts with any financial institution. Caution: 25-4-105(1) and (4).
88-128-E     A school district may select as a bank depository a bank of which a former board member is an officer. Key: resignation occurred while 25-4-l05 (3)(a) was in full force and effect.
87-03-E     A banker may not serve on a public board that deposits money into the banker/board members bank. Violation: Section 109.
87-1 8-E     An employee of a bank designated as city depository may not simultaneously sly serve on the board of Alderman. Violations: Section 109; Section 25-4-105(2)(f).
87-39-E     After January 1, 1988, a member of a housing authority may not simultaneously be an officer or director in a banking institution that is a co-depository for the municipality. Violation: Section 109.
87-40-E     An employee of a bank contracting with a hospital system may not simultaneously serve on the hospital system's board of trustees. Violations: Section 109; Section 25-4-105(2)(f).
87-48-E     An employee of the Yazoo City Public Service Commission (YCPSC) may simultaneously serve as a Commissioner of the YCPSC, provided the YCPSC has no authority to select its own depository. if this is not the case, a violation of Section 109 and Section 25-4-105(2)(f) would occur.
87-50-E     A director of a depository selected by the board of supervisors may simultaneously serve as a member of the county port commission when port commission funds are placed in the depository, because the port commission has no authority over the selection of its depository.
87-54-E     1. A separate municipal school district may continue to have as its depository a bank of which one of the city's aldermen and the spouse of another a officers.
2. The town's appointment of three members to the school board would also not violate the Ethics Laws. Caution is urged regarding 25-4-105(1).
87-64-E     The board of a state agency may not select as a depository a bank of which one of the board members simultaneously serves as a officer or director. Violation: Section 109.
87-67-E     An employee of a bank serving as the designated depository for a city may not simultaneously serve as a member of the city's board of aldermen. Violations: Section 109; 25-4-1 05(2)(f). Reference: 87-1 8-E.
87-71-E     Answered by 87-48-E, as follows: An employee of the Yazoo City Public Service Commission (YCPSC) may simultaneously serve as a Commissioner of the YCPSC, provided the YCPSC has no authority to select its own depository. if this is not the case, a violation of Section 109 and Section 25-4-105(2)(f) would occur.
87-78-E     A bank may not be designated as the depository for a community hospital when a member of the board of the community hospital holds a material financial interest in the bank. Violations: 25-4-l05 (2)(f); Section 109.
87-86-E     The de minimis interest of two county supervisors in a bank which has submitted a bid to become the county's designated depository does not mean that a violation of Section 109 does not occur. It does mean, however, that the interest would likely escape the notice of the courts. Reference: Frazier.
87-90-E     A city may select as a depository a bank in which the spouse of an employee of the city is listed as a vice-president and branch manager.
87-91-E     1. An alderman may simultaneously serve as director of a county port commission, as the city provides no funding to the port commission.
2. An alderman may not simultaneously be employed by an agency which receives funding from the city for the purpose of agency salaries. Violations: Section 109; 25-4-105(2)(f).
3. An alderman may simultaneously serve an the advisory board for the bank which serves as the city's depository. Violation: Section 109.
4. An alderman may be employed by a county school district for the county in which the city is located, as they are two separate governmental agencies.
87-95-E     Reference: 87-48-E. An employee of the Yazoo City Public Service Commission (YCPSC) may simultaneously serve as a Commissioner of the YCPSC, provided the YCPSC has no authority to select its own depository. If this is not the case, a violation of Section 109 and Section 25-4-105(2)(f) would occur.
87-97-E     The trustees of a public hospital system may not delegate their statutory authority to select depositories to another agency in order to avoid application of the Ethics Laws. (Two of the trustees are bankers.) Violations: Section 109; 25-4-105(2)(f).
87-98-E     A board of trustees for a junior college may not use as a depository a bank of which one of the board members is an officer. The board may not contract with the bank until one year following the expiration of the board members term. Violations: Section 109; 25-4- 105(2)(f). Reference: 87-1 8-E.
87-100-E     Bankers whose banks serve as board depositories only serve on boards which are subservient to the board which makes the decisions selecting depositories. Otherwise, Violations: Section 109; 25-4-105(2)(f). Reference: 87-48-E.
87-107-E     1. A bank may not serve as depository for a city when the mayor and alderman- at-large for the city are members of the board of directors for the bank. Violations: Section 109; 25-4-105 (2) (f).
2. A bank may not serve as depository for a city when the spouses of the mayor and alderman-at-large for the city are members of the board of directors for the bank. Violations: Section 109; 25-4-105(2)(f).
87-108-E     A board of aldermen may select as a depository a bank which employs the emancipated daughter of a former mayor.