OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Uonorable Jn0. Q. MoMam 

COlUlEl~SiOtl~ 

nopartm0nt or lsanang 

Austin, Taaa 

Dsar)tr.laMamar Oplnion~no. OTour requel3t ior 

ment IS 88 POllorSS 

oclations In 

fron thle departutlon of our Stat4 eXprotra4 

8bliShBlent Of branch ba.nkl~&, 

38 Ocnoral ~Prmisions of the 

upp~eeiate your opinion as to 

NatLonal Congress acted within 

its rights when It npprorul a law pemdtting 

branch banklag %n 6tatoo where such faoilities are d&initely prohlbited.g 

Ihe pertinent portions of 8 1603 are as follows~ 

q-hid section 6168 or ati8ed statute* of lam, 

a9 asetied (U.S.O.,-title lea se0. 36; I).SOC., 

%upp. t, title l2, WM. 313), be %rthcr ar.eniled 

br addlq the fOllO+inb: JuPJL~;~~@I at the end 

th9lTdS 

263 
264 

Roaorable Jnoe Q. H- - p8ge 0 

“aotrithatBndlng Blay proThlo2l Of lu 

to the owxtc~, 8 ntational b8nk aq, opoa 

outhoris8tion of t&a Oouiptroller of the cue 

reno~8ndsubjeut tosach condition8 and 

lindktionr as ho sball pmwri~a,praide 

b8nklng raoiutiea 8t lhdted Bt8tea raiut8ry 

reaerr8tfons 8nd n8ry prda asbl &&ions, but 

no such wthori~otioa shall beoome eWeotlte 

or oontirae in afteat sroept ritb the ooruent 

of the baret8q of P8r or the Se0rOty of 

the IIavy, ~hiohwerh8r jutisdiotiam.*m 

The gemral principles of ooafliot of laum, as applied to banking izmtitutions, are +a11 rrttledr Thw 8re 

at&&d in Davis 1. Blnlrdra 8011 Bank (U&3.) 40 LOT RI. 700, 

88 followrs 

w%tionalbmm In-8 lMtrumellwtlem 

of th8 ted-81 govmnt, oreated for 8 

public purpoae aad M 8ueh neoeaoeril~ subjeot to the p8r8mount wthority of the 

United states. It followa that (~11 stteqt 

by a date to define their dtrtiee or oontrol the oonituct of their 8rrrrir0 %8 abrolute4 told rherwer suoh 8tfanpted OXCclime of Buthorit~ expremrl~ oonf1iote rith 

the law o? the Unlted State@ and alther 

f%Wtr8tOO the p~FpOe18 Oi the natiOn 

le~rrlrtion or inpaIr the effiolenq of 

thwle8genolea of therederal gwerMeBt 

to dlsch8rge the duties for the perfoswaxwe of which thq were OreOted. Them0 

prlwip1eiI pT0axi0Mti0 and rrresanotioned by the repeated ad)udio8tion~ ot the 1 

oourt .' 

Thlr, pronouneemnt h80 reotdted the 8pprm81 a? the 

Supreme Court in numerour 08ms, come o? -blah 8re am follorsr 

IbiatOnTe Ian (U.S.) IT to= plb.46S# 

first Platlonal Bank d ?rust COapmy t. 

Clhl, 94 Ped. (g) 1013, osrtiorui 

denled (U.Ss) ea L8T m. 1648. 
Uoaorable Jno. Qg l&oMmis - p-e 3 

The rule h88 been 8omwh8t diffwently 8tated w 

Dlatrlot J-0 Poaohoo:n Ur,isr.r.~Doharty, 3.8 V'ed. Supp. 

793, 08 rollow~(~ 

'zho abwo paer~ gi?W to Congrew * 

the Co~tlktioa to proteat the aarrenoy 

must neeemaaH1 be Qtsaded to the po8n 

to proteot the FI 8akhg ~&a and to orbet 

flr o a l a geno iw . . ll * . 

TheaBAt of rt8te8uthorit~withr~eOt to 

national o8oooi8tloa8 ir 8ell Uefiaod In the follovlng 

1Pngoyet~ 

"IBtim b- 8?ObI'Ollght inte IS%&- 

ewe under tedeml legislation, ue Wtnxmwt8litiw of thrDJder8.lgOnrnwat,8Du 

are neowrtily mllljwt to the pBr8Munt 

ruthoritf of the United 8t8tw. lwertheleaa, mtioaal baake are mbjwt to the 

lue 0r 8 at8to in reepeot 0f their affaira 

unlwr euoh lam interiors dth the purposes 

or thatr orwtion, tend to bp8tr or dontroythslr eHio~,sn~ l af0das.l yewisp, 

or oontliot tith the paramount law of the 

united 8tBfw,* - al-et X8tl0a81 Bank to 

ni#ts0url (II..%.) (18 LB= m. 468. 

riot lwOn8l R8nkt. U8wur& itmelt ln~olred 

a question af branah banking, for which rwt3on we will notioe it more oloasly. 

The &rte of Isiwouti on the relotton of hm. Attoraw Uonerol iahittsted 8 p00Oeding in quo w.rr8nto to 

deterndne the wth~rift Ot the rwpOSXlwt, PIrat Botlonal 

BBnk, t0 OODbPOt 8 brrnoh - 8t UtOtbW th873 it@ l'Ogtalar plwe of btuin~r Ln the Citr ot St l LO& ~. 

The Sbte mpreme OOurt, in which the sotion 88a 

brought ao 88 origlml proeeed%ng, ordered the ourter ao 

prayed for by the st8t0, maying, 

‘The iWorwtioa tiled herein w the Attornq cenetal deem not lnrolre the ooam&m8- 

ion of aa 8ot in.oontliot rith the lmr of 

the united Utrtem, nor doe8 it Card to imp8l~ 

265 
266 

aoaor8bla arma a. noAdam - page 4 

tho ePriolw~ of Buy agetoy or the lutiOn81 

goverzment~ It 090 not, therefore, be raid 

to a0 in oonfliot 8ith tho rule above aanounoed, 

(mpren8oy of hot of Qongrera wer 8t8te lu) 

on&i hen00 doem not tiol8te it.. - State ex rel 

Attornq UwemX I. Fir8t U8flon8l Bank oP St. 

Louis (no,) 249 6. V. 619, 30 A. L. B. 938, 

The decision OS the State Supreme Court was aPPirned by the Unltod Statem suprome Court, saying8 

'Doee it (the OtBtO ItBtUtO) OOniliot 

with the laws oP the United Stateat In our 

opinion, It doe8 not. The extent o? the 

powera o? national banka is to be meamured 

by the term of the federal statutes rtilatil.& to euch 8sllJooi8tionB, nnd thq oaa right. 

f'ullf exeroiea only slml 8II are expressly 

gmnted, or such lncitlwtal pmor8 M ape 

neoesmq to awry on the buaineee for 

Uhich thOy Spt) 0st8bliI3hed.' 

The court ?urthor holds that the eat8blisbmnt azxl 

mlntonanoe of 8 braa& or hranohes would not be the oxercise of 8 neoese8rilJ incidental power to OperBting the batik, 

and?urther etoteds 

Wlearly the state et8tUte, by prohibiting branoheti, doe6 not Pruatrate the purpose 

for uhioh the Inat& ua8 crwtod, or inter?ere 

rith the diecharge o? its dutiea to the 6wunment a or Up8lr its ePPioien0~ 8~ a Pedera *g=w* Zhia ~onolwion vould soem to be 

aeli-aident ; but, it Mrrtuh POr It bb needed, it mPPlolent1~ lies in the faot thrt 

aationalbanking 8esooi8tion11 hare gone on 

for more than half 8 Oentury without branches, 

and upon the theory of an abeen~e ai authority to establish them. I? the non-existence 

or suchbran~hes or the absmoe o? pomr to 

ore&O them, ham opmated or ia Oaloulated to 

opaate to the detriment of the GOtMnt, or 

QI such manner as to intertore with the ePf%- 

OimOy Or !tUah 8WOCiBtiOM 8S ?edw81 BgSnoios, or to Prumtrate their purporea, it is 

inoonoeivable that the faot would not long 

minoo bwe boon dlaomemd and steps t8kea by 

congrow to renmd~ the oudaslon.~ 
267 

superv~p to control your inquiry, however, 

ir the tit ot the Congress herabn being consIdered, 

l peoifltill~ WlthOF'id~ thObr8Mh b8Dk8 iV3DtiODed 

therein, ad which Act by all the tokena Is the eapmme 

law of the load, overriding any rud all law8 of the 

etcrte -- whethew Coprtltutlonal or utatutoq -- in eonilict therewIth. 

IOU are therefore rea eotfnllj advieed that 

upon the authorities and ma80 as ng as wall the Aot in 

within th6 pomr8 of the Conger8 in the exeroiae of 

their exclueire jurladiation vlth r8speQf to the authorking mmh bra~eh bank8. 

, ./ ,’ 

&& Ode eer 

dasistant 

OS-kil 

APPROY Eii 

OPlNlON ,o coWMITrLK 

4%9