ORDER N0. E58~9
ACCEpT RESIGNATION OF NATIONS BANE:
AS TRUSTEE OF CHARLES SCHREINER ROAD FUND
AND AF'pROUE SECURITY STATE BANY. AND TRUST
AS SUCCESSOR TRUSTEE
On this the i~th day of Apr^il 1999, upon motion made by
Commissioner^ Leta, seconded by Commissioner^ Baldwin, the Court
unanimously approved by a vote of 4-0-0, accepting the
Resignation of Nations Bank as Tr^ustee of Char^les Schr^einer^
Rvad Fund and designating Security State Bank and Tr^ust as
Successor^ Tr^~_istee and institution of the necessar^y proceedings
to accomplish that.
NO.
FREDERICK L. HENNEKE, ET AL §
vs §
NATIONSBANK OF TEXAS, N.A. §
AGREED JUDGMENT
JUDICIAL DISTRICT
On this day of , A.D. 1999, came onto be heard the
above entitled and numbered cause, and came the Plaintiffs, Frederick L. Henneke, County
Judge of Kerr County, Texas and the County Commissioners, H. A. "Buster" Baldwin (Pc4.
1), William H. Williams (Precinct 2), Jonathan Lett (Precinct 3) and Larry Griffin (Precinct
4), and Frederick L. Heimeke, the County Judge of Kerr County, Texas, also being a member
ofthe Commissioners Court, by andthroughtheir attorney ofrecord, Thomas W. Pollard, and
came the State of Texas by and through its Attorney General, John Cornyn, the Honorable
Andy Taylor, Assistant Attorney General of Texas appearing on behalf ofthe State of Texas,
and came the NationsBank of Texas, N.A., a banking corporation licensed to operate in the
State of Texas, by and through its counsel of record whose signature appears below, and the
Court, having read the pleadings, heard the evidence and the argument of counsel, is ofthe
opinion that Plaintiffs' petition should be granted; and the Court further being ofthe opinion
that the law and facts are with the Plaintiffs, and it further appearing that the party Defendant
has joined with the Plaintiffs in their pleadings seeking an adjudication and delineation ofthe
management ofthe charitable trust involved in this suit;
IN THE DISTRICT COURT
KERB COUNTY, TEXAS
IT IS, THEREFORE, ORDERED, ADJUDGED AND DECREED by the Courtthat
the resignation of the Defendant be and is hereby accepted, and that the accourrts and
accounting of Defendant be and is hereby accepted, and that the accourrts and accounting of
said Defendant be and is herein in all things approved and confirmed; and said Defendant, in
the capacity as Trustee of the Charles Schreiner Road Fund, a charitable trust, be and is
hereby ORDERED and DIRECTEDto deliverovertothe SECURITY STATE BANK AND
TRUST of Kerrville, Kerr County, Texas, 1130 Junction Highway, Kerrville, Kerr County,
Texas, as Trustee, all of the assets, records, books and properties of every nature whatsoever
belonging to the said Charles Schreiner Road Fund ,and upon making such delivery that it
take its receipt therefor, and upon the same being filed among the papers in this cause duly
executed, the said Defendaxt be and is hereby discharged from any further duty or obligation
in connection with the handling and management of said trust, and said Trustee is hereby
released from any liability for the conduct of said trust affairs during the time it served as a
Trustee of said trust, and the Court hereby declares that said Trustee has in all things
performed its duty.
The Court further fmds from the evidence and the inspection of the records and
conduct of the affairs of said trust that the Trustee has managed said trust fund in accordance
with the terms of the trust instrument creating said trust and has at all times been prudent and
proper in its handling of the same.
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The Court further finds as a fact that since the time of appointment of the current
Trustee, that circumstances have changed to a great degree and the Court is ofthe opinion
that it would be in the best interest of the public beneficiaries of said charitable trust that
Security State Bank and Trust, 1130 Junction Highway, Kerrville, Kerr County, Texas
78028, with a local Trust Department, be appointed as the sole Trustee to carry out the terms
and provisions ofsuch charitable trust, and further that due to the factthat said Security State
Bank and Trust has qualified under the banking laws of this State to conduct a Trust
Department, and further that said bank is a state bank operating under a charter granted by
the State of Texas and under the continuing supervision ofthe banking department ofthe
State of Texas, that no bond shall be required of said bank as Trustee, the Court being ofthe
opinion that the public beneficiaries of said trust will be adequately and properly protected
under the banking laws ofthe State of Texas, and further it is the opinion ofthe Court that
to require a bond would seriously impair the public benefits to be derived from said trust by
virtue ofthe cost of a surety bond, which cost would have to be paid each and every year out
ofthe earnings of said trust and that the cost of such a surety bond would be substantial;
IT IS, THEREFORE, ORDERED, ADJUDGED and DECREED by the Court that
said Security State Bank and Trust be and is hereby designated and appointed as the sole
Trustee of the Charles Schreiner Road Fund and is hereby directed to carry Oout the
provisions of such trust in accordance with its terms except as such terms may be in this order
amended;
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IT IS FURTHER ORDERED, ADJUDGED and DECREED by the Court that no
bond or other form of security shall be required of said Security State Bank and Trust of
Kerrville, Texas, as such Trustee to insure the faithful performance of its duty in such
capacity.
It further appearing to the Court that it would be to the best interest of the beneficiaries
of said trust that the Security State Bank and Trust of Kerrville, Texas, shall be paid a fee
equal to and in accordance with its published fee schedule at such time such services aze
rendered for the management and handling ofthe affairs of said trust;
It is furtherthe opinion ofthe Courtthatthe public beneficiaries ofsaid charitabletrust
would be best served by the granting to said Security State Bank and Trust, all ofthe powers
granted trustees under the terms ofthe Texas Trust Act as the same now exists or shall be
hereafter amended in connection with its management ofsaid charitable trust;
IT IS, THEREFORE, ORDERED, ADJUDGED and DECREED by the Court that
said Security State Bank and Trust of Kerrville, Texas, as Trustee ofthe charitable trust
known as the Charles Schreiner Road Fund shall be and is hereby authorized from year to
year, and from time to time until the further order of this Court, to retain in its possession at
the end of each accounting yeaz a sum of money equal to one-half ('/z) of one (1 %) percent
of all principal funds of this trust in the sum of $175,000.00, and it is further ORDERED,
ADJUDGED and DECREED by the Court that said Security State Bank and Trust, as
Trustee, shall have and is hereby GRANTED and GIVEN each and every power given
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trustees under the terms of the Texas Trust Act as the same now exists or may be hereafter
amended in connection with its management and handling of the affairs of this charitable
trust.
It further appearing to the Court that the trust instrument creating this trust refers to
and places certain duties and obligations on the County Judge of Kerr County, Texas, and the
Commissioners Court of Ken county, Texas, providing for the advice and suggestions and
recommendations in connection with the purposes of said trust, and in particular concenring
the supervision, construction, maintenance and upkeep of certain public roads in
Commissioner's Precincts 1 and 4 in Ken County, Texas, and in particular all public roads
in said precincts leading to and from the City of Kerrville, Texas, and it further appearing to
the Court that it is in the best interest of the public beneficiaries of said charitable trust that
this Court appoint the County Commissioners Court of Ken County, Texas, to include the
County Judge of Ken County, Texas, and all of the Commissioners of Kerr County, Texas,
as an advisory trustee to advise and recommend to said Security State Bank and Trust, as
Trustee, each year and from time to time as to which of said public roads in Ken County,
Texas, most urgently need the assistance and the fund which maybe earned by said trust so
that the income from said trust may be best expended to benefit the public beneficiaries of said
trust;
IT IS FURTHER ORDERED, ADJUDGED and DECREED by the Court that the
Commissioners Court of Kerr County, Texas, as an official body, is hereby appointed and
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designated by this Court as an advisory trustee whose duties shall be and are hereby
determined to be, from time to time and at least once every year, to recommend to Security
State Bank and Trust, as Trustee, in what manner the earnings of said trust fund should and
can be best expended to carry out the purposes of this trust.
IT IS FURTHER ORDERED, ADJUD('ED and DECREED by the Court that when
such recommendations have been received by the Security State Bank and Trust, as Trustee,
from the Commissioners Court of Kerr County, Texas, as advisory trustee, that said Trustee
shall, in its sole discretion, determine which of such recommendations can best carry out with
the available funds and said Trustee shall notify the advisory trustee of its determination and
shall then be obligated only to deliver to the advisory trustee for deposit in the proper public
fund such funds as may be available and needed for the approved project, or projects, take the
receipt of said advisory trustee, and from that point forward said Trustee shall have no
further duty, or responsibility, or obligation in connection with the proper expenditure of such
funds, but such duty and obligation for the expenditure of such funds shall at that time pass
to and become the responsibility ofthe advisory trustee and shall be handled by said advisory
trustee in the same manner as public funds are administered under the laws ofthe State of
Texas as the same now exist or may be hereafter amended.
The Commissioner's Court's responsibility and obligation under the original trust
instrument to oversee or supervise such road projects as may be hereafter approved by the
Trustee is herein no way altered or diminished.
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IT IS, FURTHER, ORDERED, ADJUDGED and DECREED by the Court that the
Trustee herein appointed and named shall annually make or cause to be made a complete and
full accounting of the condition of said trust, including its assets, income and expenditures for
said year, and shall certify to the same, and a copy shall be furnished the Commissioners
Court of Kerr County, Texas, in its capacity as advisory trustee, and a copy of same shall be
filed with the District Court ofthis Court so that the same shall be available fromtime to time
for inspection by the Judge ofthis Court and such other persons as may have a proper inquiry
concerning same; that a copy shall be mailed to the Attorney General of the State of Texas
for the inspection of that officer so that he may be in a better position to carry out and perform
the duties imposed upon his o$'ice by the laws of this State.
IT IS, FURTHER, ORDERED, ADJUDGED AND DECREED bythis Courtthat the
costs ofthis proceeding shall be paid from the assets of said trust by Security State Bank and
Trust, as Trustee, as soon as this matter has been fully terminated and the costs thereof shall
have been fully determined.
SIGNED AND RENDERED this day of , A.D.
1999.
JUDGE PRESIDING
KERR COUNTY COMMISSIONERS
BY:
BY:
BY:
JONATHAN LETZ
BY:
L Y
B
DERICK L. HENNEKE
Courrty Judge
THOMAS W. POLLARD
Attorney for Ken County
Commissioners and County Judge
State Baz No. 16100000
951 Main Street
Kerrville, TX 78028
Telephone: (830) 896-7500
FAX: (830) 257-7079
ATTORNEY GENERAL
STATE OF TEXAS
BY:
ANDY TAYLOR
Assistant Attorney General
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NATIONSBANK OF TEXAS, N.A.,
Resigning Trustee of the Charles
Schreiner Road Fund
BY:
(Print Name and Title)
Attorney for NationsBank of Texas, N.A.,
Resigning Trustee of the Chazles Schreiner
Road Fund
SECURITY STATE BANK AND TRUST
BY:
(Name and Title, Trustee Appointed
Hereinabove)
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