THEATTORNEY GENERAL,
QFTEXAS
Aun~riu xz.-lkx~s
PRICE DANIEL
ATTDRNEYGENERAL
February 17, 1949
Hon. J. M. Falkner Opinion No. V-770
Commissioner
Department of Banking Re: The legality of using the
Austin 14, Texas word “bank” in the title of
an institution chartered
under the Federal Farm
Credit Act of 1933, in view
of the provisions of the
Texas Banking Code of 1943.
Dear Mr. Falkner:
Your request for the opinion of this office is as follows:
“There is an institution operating in Houston, Texas,
.~; which has the following title: ‘Houston Bank for Coopera-
.,.’ .tives. ’ This institution was chartered under Section 2 of
Title I of the Farm Credit Act of 1933 (now 12 U.S.C., Sec-
tion 1134 as amended) passed by Congress and approved
by the President on June 16, 1933.
“Article 2 Chapter IX of The Texas Banking Code of
1943 (Article 342-902 Vernon’s 1943 Supplement) deals
‘,with institutions using the words ‘bank,’ ‘bank and trust,’
‘savings bank, ’ ‘trust’ or any similar terms in their corp-
orate titles.
“The above named institution, the Houston Bank for
Cooperatives, makes claim of its right to use the word
‘bank’ in its title under Sub-section 3, Article 342-902.
“Our question is whether or not the institution herein
referred to is using the word ‘bank’ in violation of the pro-
visions of the 1943 Banking Code.”
The pertinent part of Article 342-902, Vernon’s Civil Stat-
utes (The Texas Banking Code of 1943). is as follows:
“It shall be unlawful for any person, corporation,
firm, partnership, association or common law trust:
I.
. . .
Hon. J. M. Falkner, Page 2 (V-778)
“(2) To use the term ‘bank,’ ‘bank and trust,’
‘savings bank, ‘ ‘tru,st’ or any similar term in it5
narna# stationary or advertising. Provided. however,
that this article shall not apply to . . a (3) other cor-
poratiens heretofore or hereafter organized undz
The laws of th St t f th U ffed Stat es to the
extent tha t sti% cG~oZtYonsear~autla orieed under
5 e Ufiited
Stat08 to con&e”t Wh et&in&a br tx9 useXiXW%i- ,*.. ’
The provisions of Tft. 12, U.S. Code, Eecs. 1134 to 1138f.
inclusive,, govern the charter and organiaation uf “Budcs for Coop-
eratives”; mum&ate their 8eneral oorporats powers (Sac. 1138);
declare such carporations to be “instrumentalities of the United
Staks”; provide for certain tax exemptions (Sec. 1138c); and, pro-
vide other regulatory laws net necessasy ,ta enumerate here.
Tha Heusten Bunk For Cooperatives, ha- baca than-
tered under and bein govartled by the laws of the UMed States
above referred to, has the right to use the word ‘%a~&” in its ctlr -
porati name and to csnduct the banking br\zefnee~ sAItBnitad by its
charter in the SWe of Texas,, slnt24 it is arprassly exempted fiiom
the psevieians of Ar%icle 3/2-902, V.C.S., by virtue of the empbr-
shed pabiari the@oei rMva tpakd.
“Banks fer Cooperatives” ahaa%e~ed and Q&n8 buei-
new under the hawe of the Usritad Sh*s, (12 U.S.C. Sacs.
ll34 arl seq) ar4 exaznpt from the previsions of Subset. Z(3),
Art&A 342-902, V.C.Sa (Th4 Texas Banking Coda sf 1943).
Very truly y4Urs
ATTORNEY GENERAL OF TEXAS
Jw
C. K, Richards
A8sisPbnt
CKR/mzwb
APPROVED