Honorable Jesse James 

State Treasurer of Texas 

Austin, Texas 

Dear Mr. James: 

Opinion No. WW-lb98 

Re: Whether credit unions should 

report personal property 

subject to escheat under 

Article 3272a, V.C.S., or 

report.their dormant or 

inactive'hccounts under 

Article 3272b, V.C.S. 

You have requested the opinion-of this office by -asking the 

following question , quoted from your letter of November 27, 1962: 

Will you please advise this department, by 

official opinion, whether credit unions, organized 

either under the laws of the State of Texas or.of 

the United States, should report personal property 

subject to escheat under Article'3272a. R.C.S., or 

report their dormant or inactive accounts under 

Article 3272b, R.C.S." 

_, :_ : 

Article 3272a, Vernon's Civil Statutes, requires all !'persons" 

to report personal property in their possession,which is subject to 

escheat. Section l(a) of that Article defines-"person"-and is as 

follows: 

?(a)' The term 'person' aS' us~ed 'in- thi's Articie' ‘:- 

means~ any individual, corporation, business association, 

partnership, governmental or political subdivision or 

officer , public authority, estate, trust,.trustee, .. 

officer of a court, liquidator, two (2) or more persons 

having a joint or common interest?'or any other legal; 

commercial, governmental or political entity, except 

banks, savings and loan associations, banking organizations or institutions." (Emphasis supplied.) 

:~ 

If credit unions are excluded from Article 3272ai by the provision quoted above, they would then come within the icope of 

Article 3272b, Vernon's Civil Statutes. Article 3272b, applies 

specifically to holders of personal property which are. excluded 

Article 3212a, Section l(a), supra. These.holders are termed 

"depositories" in Article 3212b, Section l(a), which states:~ 

in 

. 

.l 
Honorable Jesse James, Page 2 WW-1498) 

“a. The term depository as used in this Article 

means any bank, savings and loan association, bankink 

institution or organization which receives and holds 

for others denosits of monev or its eouivalent in 

banking practice or other personal property in this 

State, or in other States for residents-last known to 

have resided in this State." (Emphasis supplied.) 

This provision uses the same generic words in defining depositories as Article 3272a. Section l(a). uses in specifyine~those 

entities excepted from its application. It will-be noted that 

although Article 3272b, Section l(a)? use's additional words in 

describing depositories, these additional words are merely a clarification of what the Legislature meant by the terms "banking organizations or institutions" in both Article 3272a and 3272b. 

Obviously! a credit union is not a bank, nor is it a savings 

and loan association in any strict sense. The question then becomes 

whether a credit union is a "banking organizati.onor institution" 

within the meaning intended by the Legislature in Article 3272a, and 

Article 3272b. 

Title 46, V.C.S., authorizes the formation of credit unions and 

places them under the supervisionof the State Banking Board and the 

Banking Commissioner. See Articles 2463, 2465, 2484, and 2484b, 

V.C.S. 

.~ :

Article 2463, provides that tenor more residents of Texas may 

form a credit union and, 

" . . . upon approval of the State Banking Board may. 

become a corporation upon complying with such-provisions 

of the law regulating'state banks as may be applicable to 

the transaction ot business as herein authorized to be 

aone.~ . ." 

It is therefore apparent that while a credit union is not 

synonymous with either a bank or a savings and loan association, the 

Legislature considers the credit union to be quite similar in nature 

to these organizations and deems it desirable that credit unions 

be placed under similar supervision and regulation.. 

Federal credit unions are organized under the provisions of 

12 U.S.C.A. 1153, and subject to the provisions of Title 12, Chapter 

14, U.S.C.A. The definition of a federal credit~unionin 12 U.S.C.A. 

1152, is the same as that found in Article 2461, V.C;S., defining 

State credit unions. Federal credit unions are under the supervision 

of the Bureau of Federal Credit Unions in the Department of Health, 

Education and Welfare, and the restrictions and limitations imposed 

by Chapter 14 and administered by that Bureau are very similar to the 

Texas statutesapplicable to credit unions, 
Honorable Jesse James, Page' 3~' (WW-1498) ' 

Article 2462, V.C.S.,'provides that "A credit'union may receive 

the savings of its members in payment for shares or as deposits . . . 

It may lend money to its members within the limits and subject to' 

the restrictions provided by law. . q" Article 24'66, V.C.S., provides 

that "The by-laws of the credit unions shall: prescribe: 6. 

The conditions on which de osits may.be received and withdrawn." In 

Article 2474, V.C.S., we *at "Shares may be issued and deposits 

received in the name of a minor and such shares and deposits may, in 

th discretion of the directors, 

pazent or guardian. . ." 

be withdrawn by such minor or by his 

'~. -... 

A federal credit union may lenh‘mon~ey to~membek; to the United 

States of America, or other specified borrowers. It mav receive payments from.its members on shares, and may.,borrow,from any source 

amounts up to 50% of its paid-in.and unimpaired"capita1 and surplus, 

These powers are provided in 12 U.S.C.A. 1757. Presumably, a federal 

credit-union may borrow money by receiving deposits from members or 

others. 

Obviously then, credit'unions exercise two of the most important 

banking functions, i.e., the lending of money and receiving deposits. 

It.is apparent that the nature of.a federal credit.union is not 

significantly different from that~of a State credit union, other than 

being~organized underfederal law and subject to federal regulation, 

: 

The Legislature did not limit the scope of Article 3272a, Section 

l(a), and 3272b, Section l(a), to the .words "bank" and "savings and 

loan association," but included the words 

institutions." 

"banking organizations and 

One of the principal rules of statutory construction, 

which we consider applicable here, is found in Texas Bank.6 Trust Co. 

v. Austin, 115 Tex. 201, 280 S.W. 161, 162 (192F):,.- 

"And yet no rule of a statutory consfruction,.is 

more universally recognized than that which compels ,the 

courts to give some effect to every express declaration 

of legislative intent. The rule is clearly stated in 

M.K.&T. Ry. Co. of Texas v, Mahaffey, 105 Tex. .39,8;.150 

S.W. 881, citing Justice Harlan's Opinion for theUnited 

States Supreme Court in Montclairv. Ramsdell, 107 U.S. 

152, 2 S.Ct; 395, 21 L.Ed. 431, where it.is;said: 

. 

'It is the duty of the court to give effect, 

if possible to every clause and word of a 

statute, avoiding, if it may be, any construction 

which implies that the Legislature was ignorant 

of the meaning of the language it employed;'" 
‘. 

Honorable Jesse James, Page 4 (WW-1498) 

\ 

If the words "banking organizations and institutions" are'to 

have meaning when used in addition to the terms "bank" and "savings 

and loan association," in Articles 3272a and 32?2b, we believe that 

credit unions are within the meaning of those words, Therefore, it 

is our opinion that both federal credit unions and State credit 

unions should comply with Article 32?2b, and report their dormant 

and inactive accounts pursuant thereto. 

SUMMARY 

C*edit unions, organized under the laws of the State 

of Texas or of the United States, should report their 

dormant or inactive accounts under Article 32?2b, V.C.S., 

rather than report personal property subject to escheat 

under Article 32?2a, V.C.S. 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

t Pruett J 

Assist:% Attorn:y &eralY 

JAP:ca 

APPROVED: 

OPINION COMMITTEE 

W. V. Geppert, Chairman 

W. 0. Shultz 

Tom Peterson 

Malcolm Quick 

Marietta Payne 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Leonard Passmore