OFFICEOFTHEATTORNEYGENERALOFTEXAS
AUSTIN
Ronorabls cbmrley LmMkart
Stats Traaaurer
Austbx, Tl3xEs
Dear Sir:
68BWldd by 88Xl&8
84i 46th Lsgl816tUra.
.%areoei9oU , raquestlng our
qbinioa a8 to 'wðer aseoc iatlons EM
scmrptfrom the pa evied by Artidle
rc47*, Iis9lsad a9 ta Bill x0. t4,
b6th Leqlslnture.
y of a tax or Texi(106) cents
tar the rim Two matbed
ecured by liens
rk’s offioe, this stat&e then
1 not apply to instrunlcnt8, note3
n behalf of the flnltodStatea cr
tr any amporate agemy or infdmztentality
of the hste of Texee in oarrying out the
exprewdd in any eat of the Oougreas 0r
the Legfalatureof the ,Pt&e of Texa&"
“(a) Creation;dlreotore, The beard 1s htreby auth-
or5,zsdaad bfraatod to oreate a eorporatlonto bs lrnow
8s the Home Owners* Luau Corporation,dich shall bs 81)'
non. Chcrley Lockhart, ?age .?
lnstrumentelltyof the United It&es, which shell have
aut,borityto sue end to be sued in any murt of competent
jurisdlotlon,f'ederalor State, and w.ich ehali be under
the direction of the Beard and operated by It under such by-
ieva, rules, and .regulatlonsae It cay prescribe ror the
aocampllshmentof the purposes and intent of this section.
The members of the ijoardshall constitute the &era or
Directors of the Corporation and s!:allserve as such
directorswithout additional cozponsation."
Subdlvialon !o) of Sr.ctlon1483 provides that:
"The bonds issued by the Corporationundnr this sub-
seatlon shall be exempt, both as to principal and interest,
from ail taxation (exuspt surtaxes, estate, inberltanoa,
end gift taxes) new cr hereafter im;msed by the ialted
States or a:~.y District, xerritory,dependency,or possession
thereof',or by any Ltate, county, municipality,or local
taxing authority. The Corporation,Including its fr&hise,
its eapltal, reserves and surplus, and ite losns and LIpoox.8,
ehail lirewise be exempt from such taxation; except that
any real property oi the Corporationshall be sub&at to
taxation to tho same extent, according to its value, as
otter real property.18taxed. . .N
Tbe drganiaatlonof Federal Satin@and Loan Aseoolations
is authorizedby Subdi9ision (a) OS Section 1464, U.S.C.A., which
reads as followa:
*(a) Gr,:anixation authorized. In order to proolde
10~61 mutual thrift Institutionsin which people wy invest
their funds an& in order to provide~forthe l'inaneing of
bomes,'theBosrd is authorized, und(!rsuoh rules and re-
gulations.ssit xay prescribe, to provide for the organlma-
tion, incorporation,examination,operation,and regulation
of aasoaiatlonsto be known as 'Federal&~in(;s and Loan
&socIations,v and to issue charters tbarsror,givFng
primary considerationto the best practices of looal mutual
thrift end home-finanalnginetitutionsin the United States-"
Subdlvislon (2) or said Section 1464 reads 88 tollowe:
n(f) Aesoolaticnsas members of 2ederel I!c~me
Loan hank.
:ach such association,upon its incorporotlon,shall be-
Crtgage lnstrume~tstaken by it.
The question thus left tor our dateruinationlo whether
under the terms of the State statute lostrumentataken by such
ltlonsare subject to the tax. The fact that Subdlvlelop (k)
;lon 1464, U.S.C.A., provide8 that such assoclatloneua$be
,d as flaoal agenta of the Government and xay also atitaa
for other lnstruuentalitlesof the United Stattt3,when
*ted to act In said capaoltiesby the proper authorities,
m to oonolnde that the Congress of the United State8 did not
ar .tbatsuch as6ooiatlonswould. generally be lnstruuentalltle~
Ita ot the Uited States In the periormeneeof their usual
ms. This view is strengthenedby the fact that the l&me
1 I.wp Corporationis expresslydeolared .to'beatiinstrument-
>i the Cnlted States, and..withoutany llmltatlonbeing &wed
1, and by the dlftarenotsmade in the matter of exemptlone
ixatlon.
Fhlle in your question you rpeak OS Federal Bulldlug and
woelatlons, we aseume that you have reiertnoe to Federal
I and Loan ksaoclatloneand answer your.questlonin the nega-
This answer requires urnto overrule an opinion written June 10,
,p HonorableH. L. Hllllford,Asslatant Attorney General, to
mtt S. &ages, Aseletant County Attorney of Galveston, Texas.
'.., Yours very truly
A'i'TOEBXYY%ALOF TEXA3
0
Glenn R. Lewis
Assistant
APPROVED
OPINKm
COMMn-rEE
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