**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 oclationsIn fron thle departutlon of our Stat4 eXprotra4 8bliShBlent

Of branch ba.nkl~&, 38 Ocnoral ~Prmisionsof the
upp~eeiateyour opinionas to NatLonalCongress acted within its rights when It npprorula law pemdtting branch banklag %n 6tatoowhere such faoili**ties 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

RoaorableJnoe Q. H- - p8ge 0

“aotrithatBndlng Blay proThlo2lOf lu to the owxtc~, 8 ntational b8nk aq, opoa outhoris8tion

### of t&aOouiptroller of thecue reno~8ndsubjeut tosach condition8and lindktionr as 

### ho sballpmwri~a,praide b8nklng 

### raoiutiea 8t lhdted Bt8tea raiut8ry 

### reaerr8tfons

8nd n8ry prda asbl &&ions, but no such wthori~otioa shall beoome eWeotlte
or oontiraein afteat sroept ritb the ooruent of the baret8q of P8r or the Se0rOty of the 

### IIavy, ~hiohwerh8r jutisdiotiam.*m The gemral principles of ooafliotof 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 oon

### trolthe 

### oonituct

of their

8rrrrir0 %8

abrolute4 told rherwer suoh 8tfanpted OXCclimeof Buthorit~expremrl~ oonf1iote rith the law o? the Unlted State@ and alther f%Wtr8tOO the **p~FpOe18**Oi the **natiOn** le~rrlrtionor inpaIr the effiolenq of thwle8genolea of therederal gwerMeBt to dlsch8rge the duties for the perfoswaxwe of which thq were OreOted. Them0 prlwip1eiIpT0axi0Mti0 and rrresanotioned by the repeated ad)udio8tion~ ot the 1 oourt .' Thlr, pronouneemnt h80 reotdted the 8pprm81 a? the Supreme Court in numerour08ms, come o? -blah 8re am follorsr

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

first 

### Platlonal

Bankd ?rust COapmy t. Clhl, 94 Ped. (g) 

### 1013, osrtiorui denled (U.Ss) ea L8T m. 1648.

### Uoaorable Jno. 

### Qgl&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 oal agenoiw . . l l * .

TheaBAt of rt8te8uthorit~withr~eOt to national o8oooi8tloa8ir 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 paramountlaw of the united 8tBfw,* - al-et X8tl0a81Bank 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 tiledhereinw the Attornq cenetaldeem not lnrolre the ooam&m8- ion of aa 8ot in.oontliotrith the lmr of the united Utrtem, nor doe8 it Card to imp8l~ 

### 265

### 266

aoaor8blaarma **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 U8flon8lBank oP St. Louis (no,)249 6. V. 619, 30 A. L. B. 938, The decision OS the State SupremeCourt 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 extento? the powera **o?** nationalbanka is to be meamured by the term of the federal statutesrtilatil.& to euch 8sllJooi8tionB, nnd thq oaa right. f'ullf exeroieaonly slml 8II are expressly gmnted, or such lncitlwtalpmor8 M ape neoesmq to awry on the buaineeefor Uhich thOy Spt)0st8bliI3hed.' The court ?urthorholds that the eat8blisbmnt azxl mlntonanoe of 8 braa& or hranoheswould not be the oxercise of 8 neoese8rilJincidentalpower to OperBting the batik, and?urther etoteds

Wlearly the state et8tUte, by prohibiting branoheti,

doe6 not Pruatratethe purpose for uhioh the Inat& ua8 crwtod, or inter?ere rith thediecharge 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 Oenturywithoutbranches, and upon the theory of an abeen~eai authority to establishthem. I? the non-existence or suchbran~hes or the absmoe o? pomr to ore&O them,ham opmated or ia Oaloulatedto opaate to the

### detriment of the GOtMnt, or QI suchmanner as to intertorewith the ePf%- OimOy Or !tUah

8WOCiBtiOM 8S ?edw81 BgSnoios, or to Prumtratetheir purporea,it is inoonoeivablethat the faot would not long minoobwe boon dlaomemd and steps t8keaby 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, overridingany rud all law8 of the etcrte -- whethew Coprtltutlonal or utatutoq -- in eonilict therewIth.



### IOUaretherefore

### reaeotfnllj advieedthat upon the authoritiesand ma80 as ng as wall the Aot in within th6 pomr8 of the Conger8 in the exeroiaeof their exclueire jurladiation vlth r8speQf to the authorking mmh bra~eh bank8.



# , ./ ,’ && Ode eer dasistant



### OS-kil

APPROY Eii OPlNlON 

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