587
OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
-C.MAIIw
- .Ql-
Honorable Lee Grady, Co.tisaioner,
Bqm-tment of Banking
Auetin, Texas
Dear Air. Brady:
Plan Bank sharer
eipt of your lettar oi
galopinionthe rollm-
hat chapter, EUbeeqwnt-
owers proviAeA ior UAsr
t:mr.iarter' applied ~to the
or it8 deposita purrrsuant
to the the United Water.
*In aonneotion with that applioation
It Aeveloped that xiore than a majority Or
tim stockof thin bank ie awnd by &A-Con-
tinent Banoahares, Inc. a foreign oargora-
tlon, whloh corporation haa no permit to do
bueineas in this State. This tact having
corn to light, the FDIC ha@ requested that
I subpit t0 YOU the rOibWbU$ pU88tiOn0:
588
lionorable Lee 3rady - i%ge 2
“1. Is Mid-Continent Banceharee, Inc.,
a foreign aorporation, lawfully doing busl-
l~eae in thie State?
w2. Are XiA-Contlnent Banceharee, Ina..,
anA the San Antonio Xorrie Plan Bank, or
either or both of t&m, exeroielng banking
privileges in violation of Seotion 16, Artlole
16, of the Texas, Constftution, or in violation
of any other law or th it3 State?
“‘In the light or the above raote, ir the
San Antonio Sorrle Plan Bank lawfully entltlod
to exercise the prlvile~es ae provideA ror un-
der Chapter 9 of t$e Benking Act as amended
by S. B. No. 2681”
The queatlons presented by you are the e-0
as thoee ntatsd in your requeet for an opinion or date
June 26, 1940, and which we anewered in our Opinion No.
O-2484. We th4rf?rOTe answer as we AlA in that 0880, to-
Nltr
1. We express no opinion am to whethrr or not
the I&Id-Continent Banoehares, Inc. Is lawfully Aoillg butal-
neae in the State of Texae. We do hold, however, that
it8 rotlvltioe, as Aiaoloeed by you, Ao not arreot the
atatua or rights of the mrria Plan Bank aa a Texas oor-
poratlon to carry on ita corporate purpooee and arrairs.
2. Thla qusetlon ehould be anewored in tlm
negative a8 to both institutions -- the Mid-Continent
Banohhares, Ino., and the :&crls Plan Bank. In thie
oonneotion it Is perthant to cay the inoorporatlon of
the 2dorria Plan Bank should not be aonaldoreb a eubter-
huge or soheme ror tie oarrying on or the WA-Continent
BanoUaree, Inc. buslnees, ror the bueineee or the two
oorporat i ona -- that is, the corporate purpoee -- is
not the bane. The corporate buslueee or the .Aorrie Plan
Bank IS that of a banking corporation* NheSFeae, the cor-
porate business or the Xid-Contillent finsofar as perti-
nent here) le that of a holding corporation.
589
Honorable Lee BraAy - Pa@ S
opinion
Our reamns are fully
referred
writ forth lntb
to, a copy Or whioh we hand you
herewith.
Very truly your6
APPBOVHD JUL 16, 1940
/al/ Grover sellme
FIRST ASSISTAN'i'
ATT- GENESAL
*’AP?ROvsD
OPIHIOI co@dxTTm
By /a/ 8. W. E.
chalrlosn