Hon. L, s, Johnsen, CoMissioner,
Department of Banking,
Austin, Texas Opinion No, V-216
Re: The legality of a
State Bank Charter
amen&meat to chalye
its domicile from
one.cou~&y to anoth-
era
Dear Sir:
Ton request our opinion in the rolhmiag
WArticle 4 Chapter III of the
Texas @a&ing Code provides tkat the
Axtiol&~ of Association ef a State
Balllr*shall contain: 2, The city or
: town ami the oounty of its dcmici10.~
"Article 12 Chapter III of MO
Code prwides: #Subject to the pro-
risions of this Code, any State bank
may amen4 its Articles of Assooiation
for aay lawful purposeGo 0 a 0 spro-
rided, however, i o y no ameabrsnt
changiw tke d@micile of anJrstate
bank to amother tit or town shall be
effective until -the
approve State
Banking Board in the manner provided
ior tha approval of an original appli-
oatien for chartorn
*Since RB specific provision is
aa& under the above authority for a
bank to move ita domicile from within
one couaty to within anether county,
we are hereby requesting your opinion
aa to whether a bank in lmen&ing its
charter to change fts domicfle from
one t0wn 1~ one county ts a city in
another county is so tuaondingits
Hon. L, S. Johnson - Page 2 (V-210)
charter *for a lawful purpose" pro-
vided it complies with that provis-
ion requiring it to submit the Amend-
ment to the State Banking Board for
approval,"
Section 16 of Article m of the Constitu-
tion dealing with State banks contains the following:
"Such body corporate shall not
be authorized to engage in business
at more than one place which shall be
designated in its charter.*
The "place" contemplated by this provision
means the town or city wherein the bank is to be estab-
lished and operated,
The language quoted by you - "provided how-
ever O O O no amendment changing the domicile of any
state bank to another city or town shall be effective
until approved by the State Banking Board in the manner
provided for the approval of an original application
for charter" - undoubtedly implies that the domicile of
any state bank may be changed to another city or town
by the process of charter amendment. Suoh amendment,
therefore, would be *for a lawful purpose" and there is
nothing in the Code to limit the permissible removal to
another place in the county of its original domfofle.
You are therefore advised that any state
bank may amend its charter so as to move its dOmiCile
from one ::ountyto a town or city in another county,
provided it complies with the requirements of th2 Bank-
ing Code with respect to submitting such amendment to
the State Board for approval, "fn the manner provided
for the approval of an original applioation for oharter."
SUMMARY
A state bank may lawfully remove
its domicile from one county to'another
town or city in another county upon
amending its charter properly, and sub-
mittfng the same to the approval by the
_.
Hon. L. S. Johnson - Page 3 (V-216)
State Banking Board in the same man-
ner provided for the appkoral of an
original applicatioa for charter.
Art. 12, Chap. III of the State Bank-
lag code or Texas.
Yours very truly,
ATTOltlQtY(SENJ3RAL
OFTY!ZAS
0S:wb
BY
&& Assistant
I
APPROVRB ILAY 24, 1947