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. 323
OFFICE OF THE ArCORNEY GENERAL OF TEXAS
AUSTIN
Boaorrblr Qmrlr~ tsokhart
Mate TreaMrer
Aurtln, Toraa
quert for an opleloa,
County Clerk
0 inion a8 to
4100, R.&S.,
19, qremptr primit*
ularly Y, L. xooay
orated),. Oalvertoa,
the wmdaent on
en ln~trumsntr.
~Revlred Bitll St*tutea of Perar.
The Note Stamp Rooording Tax Act, to-tit, orid
7047r, prorlder thrt %o. . . inrtrummt rhdl br
y: -
324
Bonorebl6 Charlay Lo&hart, page 2
ill@& or reoordrd by u\r aotmty olrrk la this State until
thrre~hsa been affIxad tb luoh Inatrunent atuapa In aooord-
anoa wIth.the provieIona* of aald atatuts, and fixer a tax
baaed upon the amount of the note6 or obligation6 eaour
br the inatrusant riled or reoordad, and provlaaa that Ppay-
ment af tha tax . . . ah611 be avId6noad br afflrlng the
atampa Iaaued bf the State through ths Btate Treaaurar and
the County Clarka* a6 pr6aorIbad In the atetuta.
Senate Bill 97, paaaea bj the Forty-aavanth LagIr-
lature eh8ngaa the taxing leotlon of the 14w, to-wit, pan-
graph 1.1, by aaaleg lasguag6, aa iollwar
I nor ahall thI8 aectfoa apply to Inatru-
aanta,'n& or other obligation8 t&an br or de be-
&lf of Uatloeal Bum Aaroalatlona org*aIcwd ueaer
the law6 ot the UnIt.ed 3 tator, nor lnatluaenta, notee
or other obllgatloer token by or on bahalf of State
Bankln Corporation6 of the State oi Taxaa errateb
under t itle 16 of the Revlard Civil Statutaa of Taxae,
. . .a
rfll ba notloed that
It the only *State B6nkIng Cor-
porattona’ exeapted by bald L&mate Bill 97 6ra thoaa loruata&
under Title 16 of the RevIeea Civil Statutea of Texaa.“‘~Ae
lxam;aatIon of aald Title 16 diaeloaea that the only refer-
ease as&a In it to private benkrln# ~natitutioaa 18 la hrtiole
641 (Chapter 8, Title 16, Revlaed Civil Statute6 or Taxsc),
vhloh read8 aa iollowar
*It Ia hemby daolarad to be the publio
polloy o? thir .Stata that no addItIon61 wItate,
. banking InrtltutIon or buainaas lh6ll b6 orgae-
Ired or a6tabllahrd, and it ah811 b6 ual6tiul
for say paraoa, aaaooIatIon oi par6on6, prrtnar-
ahipa or truateea aotinq under any oommoelav
deolaratloe of truat to hareartar orgaelre or
latablIah, begin or raaume thr operatlon~oi any
te:“g in6titutIon or bu6lneaa xlthln thle
It ahall be the duty o? private ledIvI&-
uala ir ?Iraa engaging In the banking buaInaea
to use after the e6me under whIoh the buaIneea
la oontluotod, tha word In paranthaaea ‘whoor-
poreted’, nnd fstlura to do 80 ahall aubjeot
Fionorabla Oharlay Loekhmt, pago S
tha ottaadar to a peneltyof one hundrad dol-
lars to be aollaated ia the maeeer provItl8d
la Art1010 491.’
We la a umathat the private baeklng InatItutIan to vbloh you
;;f;;2Ta
latabllehed bafora lab¶ Artlale 841 rant into etie4t
.
TM18 16 provIdaa for the lnoorporatioe of varlooe
ktnaa o? banklng InatItutIona , areatea the o??Iaa o? Banking
CouIaaIonar a? Taua an4 giver lald 0r?ioar oertaln powers,
and regulates the oparatloe o? bank6 In general. Your letter
ahowa that the private banking ;natItutIon you ark about la
onIeaorporated. It balng unlnoorporated, ve era unable to
sea how lt oould be ‘orrated ue&ar Title 16." Tharafora the
lxeeptlon areatad by 6aiQ Benate Bill 97 door not apply to ft.
WI vi11 now take up four other quaatIoa. &apt&r
9 ~ArtIolaa 642 to 849 Iaolua~va) of Iltla 16 o? the lW~*ed
Civil Statutra of Taxaa wee emoted by the Thirty-•lxth Lag-
Ialatura la 1917, and 16 provided for the organlratloe an6
operation 0r four bed leveataent oompaaIaa. The ooapanIaa
orgualrail under raid ohaptar are oomoonl;l keoun as Rorrla
Plan Banks, although thnt name is not urea In the body o? the
atatota, but It is used In the herding of bald Chapter 9
(ArtIolaa 842 to 642 inaluaiva) In the raoodlfioatioa of the
Revised Civil Pltatutea of Texas aQaptad by the Thirty-ninth
LegIalature in 1995. We la a uu that r o tthave rafarmoe to
the oorporatIoaa organtrod under the tone o? raid Gh8pter
Q and known as Worrla Plan baeka.
Chapter 9 o? iltla 16 reuinetl unohragatlfrom
1917 until 1939, lnU during that tlma Artiole 546 in raid
ohnpter grant4 power6 to the oorporatlona organlxed thera-
under in language 86 rollowe:
*her loan and Invaatnant ooapany, $a add:-
tlon to the pokers oonfamd upon oorgorat~oaa >r
thr general oarporatloe law, ahall have the iollow-
lng powera t
‘1. To lend aone? and to aeauot Ieteraat there-
?or In aavaeoa at a rate not to exoead mix per oant per
Roaombla Qmrlev Lookhart, page 4
annum, and In addition to require and noeIva
uniform weekly or monthly inrtallmante on Its
oertI?Icataa of Indebtednaae purohaaad by the
borrower aImultaneoualy with the raid loan trana-
8otIon, or othrmIse, ana QledgBa with the oorp-
oration am aaourlty for the said loan, with or
without an allawnnoe of Intareat on auoh inatal&-
maata.
l2. To mall or negotiate bonda, notea, oartl-
?loatea OP Inveatmenb and ahoaea In motion for the
payment of money at the time, llthar flxeb or un-
oartaln, and to reoelva paymenta thara?or In ln-
atallmaata or otherwise, with or without an allom-
lnoe of ~nteraat upon auoh Ieatallmenta.
‘S. To aharga tar a loan madr pursuant to
thla artIala one dollar far eaoh ftfty dollara or
fraotlon thereof loaned, for axpen8aa, Ieoluding
my exaaInatIon or InveatIgatIona? the oharrotar
and alroumatanoea a? the borrower, oo-maker or
lufaty, and the drawing and taking aaknovladpent
of naoeaaar papers or other axpenraa inourred In
raking the I our; no oharge lhnll be aolleoted un-
leaa a lean ahall have bean made a6 a reault of
luoh lxaaleatIon or Inv~atIgat~on.*
Sn the oaae of Kaliakl v. Qaarett, 109 8.Y. (2d) 640,
(Writ or error ratuaab) daoldrd by the Oourt of Civil Appeals
at 9m Antonio In 1937, It warn hqlc?that oorporationaorgae-
Ired and operating under raid Chapter 9 of TItla 16, to-wit,
Xorrie Plan banks are not oorporatlona *with tinking and
diaoounting prlvIlegaa.’ That bslng true, they are not Btete
Banking CorporatIone.
In 1939, by 6enate 3111 266 entItlad lP o verofa
WorrIa PIan Banka Enlar ad,* the LegIalatura ohurged para-
graph 2 of Artlole 546 f!above quoted) to raad se tollowar
‘2. To reeelva money on time drpoalta, and
to purohaae, mall, dIaoount, or negotiate bonda,
notea, oarti?~oetaa of iavartment and oho8aa In
aotion for the payment of money at a time either fix-
ed or unoertain, and to receive peymanta therefor In
~nat~llmenta or otharwtra, with or without an allou-
anoa of Intareat upon auoh lnrtallaenta. To purchaaa
atook In Federal DaDoeIt Inauranoe Corporation. Am
amended Aota 1939, 46th Lag., p. 72, 6eo. l.*
.’
Ronorablo Charlrl Looahart, &O 8
Seld Senate Bill 968 alro added a new artiole known a8
Art1010 54Ra, rending 81 follower
‘All oarpomt~onr now ohartared under the
provlrlooe of thl8 ohapter ney adopt the power8
herein grantrd by fllleg a oertillontr to ruoh
effeot with the Comaierlon of BankIng, provld-
ld however, that the lnooroorE~tlon of oorpora-
tlonr In the future under thlr ohapter rhall
n&e appllontlon to the State Banklng Board 8n4
be governed by the prorlrlonr of Chapter 2 oi
thlr title. Added Aote 1939, 46th Leg., p. 72,
Sea; 2.*
i)nNovember 7, 1939, thtr department held in At-
torney dmernl's Opinion Ho. O-1542 thnt raid *8enate Bill
WI oon8tltutrr the oorporntlon8 oreated under ahspoor 9,
rupra (Ch. 9 of Tit18 18) oomorate bodler with banking and
dl8oountlng prlvll8ge8, within the aranlng OS the Conrtl-
tutlon, upon their oempllnnoe with the requlrementr of th8
a06 ltcreli, the amendment8 thereto, and thr oon8titution.a
YO 8till adhere to that ODInion end the Fbn8on8 glren there-
ln, and w8 a r e lnolo8lng a oopy of the 88.me.
The rxemptlon oreated by the ~Botr Stamp Reoordlng
Tax amendm8nt, to-wit, Senate Bill 97 by the Forty-rrt8nth
Legl8latur8, applies to “note0 or other obllgatlon8 taken
by 0~ on behalf of S t Jn.nklu Qoraorrtlo~ of the State
of Texas oropted under -sLF ltle lB.* Are Mom18 Pl8n bank8
‘State Banking Oorporat;on80a Under the holding o? the
oa8e of Kallrkl t. Gosrrtt, 8upra, they wer8 not under the
statute a8 it read st that tlm8, vhloh wa8 w to th8
parecge of Senate Bill 260 (8ntltlrd *PowoF Of Morrlr Plan
Banka Enlarged') In 1939 but under the holding of Attorn8y
tinoral'8 Oplnlon lo. O- i 1142 raid Sonat 8111 268 a~dr them
State Banklng Corporatlonr %pon thelr oomplianor with the
rot lt88lf, the anrndmrntr thereto, and thr Conrtltutlon.'
Our an8wer to your fir86 quertlon 18 that not88 lrsl
other obllgatlonr taken by or on behalf OS prlvPt8 unlnoorpor-
ated banking lnetltutlonr~ate not exempt from the tax lerled
by the Note Stan? Faoording Tax Aot a8 amend8d by'Smate Btll
97, Forty-reventh L8gi8lbtUr8.
Honorable aharl8~ Lookhart, pwo 6
i,,:
< Our an8wer to your reoond quertlon $8 that not08
and other obllgationr taken br or on behalf of Rorrlr P&an
Bnakr (Ire not exempt l? raid lnstltutlon wa8 lnoorporatrd
prior to the pnrrage of 98nat8 Bill 266 in 1939 and ha8 not
rlnoe adopt84 the power8 granted by raid Billi but luah aote8
and other obligatlonr are exoaspt if raid lnrtltutlon wa8 ln-
oarporated rlnce the lffcctlve date of raid 0enate Blll 266
in 1939, or ha8 atlopted ln the manner prerorlbed by the rtat-
ute the eddltlonal poverr granted by raid Senate 2111 260.
I‘“~hm-/~
FIRST ASSISTANT ,,@A
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ATTOEiNEY GENERAL cool1 0. Rotloh
CCRIJ8 A88i8taat
i