\ OFFICE OF THE ATTORNEY GENERAL OF TEXAS
c AUSTiN
abova itibjsct *ttar
my, but doear not rant
~if by 80 doing it no-dd
s.zlkins attItus.
ts to jrnoII also 1s a ,pri+rta
6 may be swad Prum ita grsssst
aorpwate limi.ts of enot!icr twn.*
i? Of ehSpts?T fx Of the TlElr?rlf~ &UikiXin~ .=Od6
of 1942 as p6SS6d at the rsgalar adsalon of the forty-sighth
L6glalatarst is as tollwet
It all1 ba tleen froia (4) of (2) of Art1018 2 above
quoted~thatthe pri+atsbanks exsa>tadfro5 the prohibition
to oonduat a banking or tPQ8t bmineas OF to hold out to tha
poblio that thy ,are coodnotlng a banking or tmat buainsars,
are prltats bank8 wwtua11y sti 1~afwll.g
co~d~ctln~
a bmirin~l~u~sinsa~ in the aftwbim dote of this act.
khat ~4 shalJ. my hersdtar la therefore upcn ,the
asswsgtion that ths particul-s-r prfrste bank as to r&ic:~ yo?i
fnqulm is such a priveta ba.?k as YSJ aatuaXly snd latiuily
ooaducting a bonitin& business oa ths etraotit6 date of the
pmseat Banklog Coda.
The wel,lrocognize4fu?&Ians of the badclng burl-
ness hsve long been, (I) the ~SSS.S~OF,a!: natas inttendod to
circulate es money; (2) the acasptenae of de;-,oaits of mnoy
Honorable Jno. q. maem, psfS4 ?r
to be paid ~poo tha orPer 0:: ths depoeitor; snd (3) the dis-
aozntiag of aosa4rcl3l paper, In late y40s of coar.36 th6
tire* of th8ae funotloas hn3 not ban ersralssd w that the
pwef3nt ssrsntlal funotione cd tha banktie: buslnser am the
4eospEzoae of dapcsits oml th Cisa~Juntin6 of peper. The
acre lending of mxx.y 33 c;otr-.2istfn~~~~~3d trca disc,rlrt-
lhg pqer is not of itself ~811cxolusivs funotlcn of bmking.
Th8 oroaiptlou or prfvat4 bonkr frontha proaorlp-
tlon of lus as to bclaking is ndt liait4d to those private
bank8 that am craga@ tn accepting dapoeltn, OOT y4t to
thora privstr banks that are doing a Usposit a nd l disoount
burinaaa. 2% appllea seamrally to~.prlnte bank8 *rhlob rare
aotually an4 lawfully oaaductiq a banking businesa on the
lrraotlts ,date* or the Code.
Sow Art1016 lo? Chapter TII ot tha Bmklng Code
authoriaa8,~th~ inooqoration or a etate bank “with any ame OT
~oicm of all~'of tIm foll6wia6 gqwerrs in
*te) To reo6ira tla8 and Oasmad depoaSfs~at
ihtsrest or dthwdt 1nSarsst; ta land acney 4th
or nitbout seourity et Intareat; and to buy, awall
and dUaotmt boado, ne&otlable lastrumnts and
.otlmr~~.o~i~anoon of +l~btsdn~sr,.;
Iioonorabls &IO. Q. YGBdaaa, POIY 4 7