OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable Ai C. Zlnborn
Distriat Attorney
Civil Courts,Buildlng
Houston 2, Texas
Dear Sir: Attn. Xr. ziobert 8. Casey,
money scoured by a
Id furniture, but
te out that such corporation
ttel mortgage on household
he foregoing that the oorpora-
Such lntar-
a recognition
of the following rule cited in Words and Phrases, Vol. 35,
Penn. Ed., p 561:
go& Ai C, Winborn, g&e 2
Wuoh +qvmesions ‘.&I *pursue the praotioe ‘of
any profqseion or busiUa6, * .,.,. . and similar tarme,
oontemplate a oourde of busltneso~ or pfprekd0n.91
praotioe, and not elngle isolatnd aote ariaing~rrom
unusual oiroumstanoee. Dane v..Br$wni C. C..A. l&&v.
70 F, ?d 164, 165.”
Artlolo 6165a:,~ Vernon’s Annotated Civil Statutea, in 8eo-
ti~oti 2~ t&&at, ,dufi”aa loan brokers’ aa r0mw8:
‘A~loan brvksr 1,~ a paMon, firm or oorpora-
Izion’ who purauetv tha tiuainese of lending 1pDney.
+ purdhitv&ing .aa+arirrr anb taking for .se.ouritp for
the paymant or euoh loan. and ,interaet tbaraon an
as~siguawnt Or3vagiw or ,au~sQnmentor imgtmwith
Powsr or ‘,Attorney, tc5~q0lleot the aama or other
order to2 unpaid ohatta&‘inortgage or bill uf aale
upon household or, kitchen fui?nitur& .v~
Tha fOrsgO$n&.atatuti :wae reosnt4 &niv&ubd by.the Third
‘Court af civil Appeal@ In tha, oasa or XarvilL ‘va. ,,Stat.a,, 188 S. w.
(2d) 869, writ’ of’ error refured,. w that ease the dourt bald that
the definition or a, Loan brok5.r io made to~~depemi enttra4 upon
the oharaoter ‘of :eeourity ,takan for the payment of loans of money.
iYe quota from tha opinion on ‘page 8702
‘Art. 6165a, Aota 4927, l@t’caUad SBBB.:~,~40th
Leg. l 4i 17, amanded Andyra-eneotad, por.tianns a,f : prior
atatutee d6fiaZag and regulating the ,.Loan brokw
burtieee., Tha ‘above quoted pOr.tion :af the aa+ding
act def~$nZng~~a’&an broker made .na material uhange
in the wt3gtkge~ ur the ~30praer .ot;atutee carining a
loan brulieFI Tha deoi&lone oonetrning both the
ofig&nat’:and’: the amanbed :aotr hold that a loan
.’ bra&ra$‘~@ .‘d&fwad ia onw rh0 ‘pureuba’: tha buet
naas. uf lendi~ng munoy upon interest, taking a0
aeo&i~ty themfor an areignnwnt of wage,, I’iir,a
amtt&l~ m6rtgage one houeeholQ..: Andykitnhen furnl-
t,mr Brand v. State, 109 T%x. Cr. R. 96, 3 9. We
(261 4390 Rubbard v. state, 109 Tax.’ Cr.~ R. 320,
Ed+ s. UT. fga), 971; Juhen ~?,&W&!, 86~ Te& cr. RU
63, 216 s. w. ~873; suttoo vi Luvan, ~T&x. Cfv. A pea
279 st WU 295; Mason v*, Qraen,.Tex. (3iv. App. N ii26
9. W. $29; Means,v* State, Tex. Civ. Appa,, 75 8. Wm
(26) 953. ., .”
..,
I-ion. A. C. Winborn, page 3
Wider the loregoing authorities, it is the opinion or
this department that a foreign corporation, with a permit to do
business in this Stats, inoorporated for the purpose of lending
money purohaaing selling and dealing in notes, bonds and
aeour i ties, but wi thout banklna, and disoount privileges, falls
within the olasalfloation of *loan brokers” a8 defined in Ar-
tiole 6165a, V. A. c. s., where it pursues the buekma oi
lending mneg upon. interset, taking as seourity therefor
chattel mortgages on household furniture.
Yours very truly,
ATT0
.BY
WlUIC:I.J