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OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
GROVER SEUERS
A-E-f GWERRIL
Honorable L. 3. Johnson
at30mhhwmr, Department or BEiaklng
Au8tln. Tome
Dear sir: Ret Construotion
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Hon. L. S. Jotmson, page a
"1. Ths seaurlty 1s a first lien upon s&oh
real estate or the loan or fnrestmsnt nmdo by th8
bank Is wholly guaranteed by the Administrator of
Veteran8 ArreIrtJunaar Title III of the ZJenios-
smn's Readjostmeat Aot of 1944, se amended from
time to time.
"2. Ths total (net balsnos* owine upon the
tndsbtsdnsss seo~red by suoh lien (a) dose not .
exoeed fizty per oent (!5Wi)of the epprelesd value
or suoh rssl sstatq or (b) does not exosed slrty
: per oent (6oib)of tha appraisal value of ruoh red.
e&ate enU mush loan or bbllgatlon pxwldqa for
uniform monthly, pua~rts'rry,
abmi~wal., or annual
reduotloa~ of prinolpal ~fnauoh amounta aa to mtlre
Sokty pm oant (40$) thardf within flW(ti) yearn.’
taxes aoreered against the badurif;y.The ag regat*
of loan and lmm&ments of the 02$00 pzovldeiirar
in thla Submeatlon (a) Of Swtlciri%, made'by #my
Stafo Bank ahsllnwer, nlthout the~~wrlttin~~neezW :
of the Commlseloner exabed ths oirtifletisurplop uul
o&pita1 af suah bank.
"The term *rsslCsntlel -al eatstsf PB us&in
this subrmtlon (0) of Seation e, shall mesa land on
whioh la situated a diwellingof not more than feur
(4) iamily units.,the p&Wary we af~whioh ifi~ossu- I ~.
panoy a8 6 home.
"The term *net balance' 6s use4 in this.Seotion
2 shall man the balanoa obtaiaed atfir deduotlng
tmm any loan or obll. tlon the portion thiireof
guaranteedby the Add?’
n%strator of.Vaterans Aif'alrm
under Title III of the Servrioemsn!sl&ed$Mtmenk Aoti
0r 1944, aa amnffad rrom tliw to time.*
Fim. L. 5. ii&&n; page 5.
Art1010 11, Of Ohapt4rV, 14 ae f4ll0m:
"Any pro&lOn of thi4 Code to the oontrery
notwlth&andlng, any state beak may make any loan
or ln~8tiuant whloh suoh bank could make were it
opantlng a8 a natiaml bank, and the amking of
4aeh loan ox lnrartnmnt shdl not oonstitute a‘
vloletlon 0r any penal pmrlelon of the btetutee
of the State.'
Statq~BanlP,la Texas have only tha &&warsoonfarre& '
upon the4 by t&a '#tatate of.the.State.anA the ohartere ua#ar
rrhioh they ao& an4 hcvo no.powea beyond thle from any other
@wammatit @r~8oaroa.. 'The Ooda ia a eomprahanelta one and
oovarn the wh@la flald.oftha o&axutlonof 8-h banks, ‘It lw
Smlllar lew in et~tutory aoMfrmMoa that auoh a ooda 8himle
be aoMtsuad in ifr.antl~y, 48 4 whola~.glving aitaot to arasy
portion tRamat: a8 6.h'lmtagta&part O? the law aotamlng tRa
%rtnmt~
pmrtiralq il%& T ; ~:~lOlt, :4woa4I. ii-etelmnig e&me‘ e%ola&e
the ahasaot~r 'of
do08 not et&inl.,ala~&a';.
pexmitbat by.irtlele llc But it
oh 'fha'oonti'ery,
artlola Xl .%mae muah a
i., ;&: 2;im.
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,I'
*lluireaion for *he lnolu8lon of A*lale~~l1, if one -;;.
It~aarv~ the whole#ome.got-'
tlla~ridnatlon between mational
the latter*8 hurt.
'scrahaiudt~.~r'reao~ned.'b~ the aoztgmm~ a&ably in.
deaying naklhal lssoelatlon the rl&ht to malnldn braaeh be&s
in tlmse atatW who88 lawa forbid brulah banking. ~8 tsaib by
Kr. Loeohman; Attorney for a~ taterested,bank, a oopy Q? who40
oplnl~~'hci464lp4niao
ymlr requo4tt
*It wan 0164rly the lntsntlon of the L4glfbl4tUXV
to allow Sate banks egu41 opportnulty wlth~atian4l.
banke in the making of loam qnd lnrestm4nttiby pm-
tiding ln Artfole SIB-511 that notwlthsi~azn3lng
any
oontrary prooislonr of the c0a0;e state bank map
make any loena or ltiveatmentswhloh aa&3 bank qotid
make ware it operating as 8~national bank.*
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Hon. L. ,s; Johluon, page 4 ..
But we all(b6e8t,'hDwwerr
t&la ham nOthi& to do with
the question of the loanlimlt of the .$dlvlduel bank oonoemed.
Rs are hot0 ilonllng with the quality, - eli~lblllty of invest-
ments, and not rith the puantltatlre feature a8 preaoribed hby
Artlole I of Chapter A OS the Code. Se said, in Opinion Ho.
0-6609, addmdraed to Yr. Jamleon, Banklw Comal8sioner, un&?r
date of saptember 18, 10Csr
"It foll&w, we think, that under the code a
State bank mny lawfully invest in thase obligations
ot another State, or its p~litloal sub6lridons, in
rbloh a national bank domlolled in thlm State 1Ji .
authorized to invest; but that the 1mn 1Mt of
Teur WOUU at111 apply a6 fo.saoh out-of-date ' '
lnvedaerita, a8 well a to %¶io.ae in the.Statt.*
trust
Wg thit.rhatwe' h&e &id suiticiqntlr answw15
yourlnqtlldes.
Approved Feb.87,
amvw 883lsla .
AttOrney Oeobral of Texan AppnAsdi ‘apiaion
aoarmittee
OS 1rt;djm BY .&!L.L...
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