## THEATTORNEY 

# GENERAL, QFTEXAS

PRICE DANIEL ATTDRNEY

GENERAL 

### Aun~riu xz.-lkx~s February 17, 1949
Hon. J. M. Falkner Commissioner Department of Banking Austin 14, Texas Opinion No. V-770 Re: The legality of using the word “bank” in the title of an institution chartered under the Federal Farm Credit Act of 1933, in view of the provisions of the Texas Banking Code of 1943. Dear Mr. Falkner:

Your request for the opinion of this office is as follows: “There is 

### an institution operating in Houston, Texas, .~; which has the following title: ‘Houston Bank for Coopera-

.,.’ .tives. ’ This institution was chartered under Section 2 of Title I of the Farm Credit Act of 1933 (now 12 U.S.C., Section 1134 as amended) passed by Congress and approved by the President on June 16, 1933. “Article 2 Chapter IX of The Texas Banking Code of 1943 (Article 342-902 Vernon’s 1943 Supplement) deals

‘,with institutions using the words ‘bank,’ ‘bank and trust,’

‘savings bank, ’ ‘trust’ or any similar terms in their corporate titles. “The above named institution, the Houston Bank for Cooperatives, makes claim of its right to use the word

‘bank’ in its title under Sub-section 3, Article 342-902. “Our question is whether or not the institution herein referred to is using the word ‘bank’ in violation of the provisions of the 1943 Banking Code.” The pertinent part of Article 342-902, Vernon’s Civil Statutes (The Texas Banking Code of 1943). is as follows:

“It shall be unlawful for any person, corporation, firm, partnership, association or common law trust: I.

. . .Hon. J. M. Falkner, Page 2 (V-778)

“(2) To use the term ‘bank,’ ‘bank and trust,’


### ‘savings bank, ‘ ‘tru,st’ or any similar term in it5 narna# stationary or advertising. 

### Provided. however, that this article shall not apply to
. . a(3) other corporatiens heretofore or hereafter organized undz The laws of th St t f th U ffed Stat extent that sti% cG~oZtYonsear~autla es to the orieed under 5 e Ufiited Stat08 to con&e”t Wh et&in&a br tx9useXiXW%i- ’ ,*.. The provisions of Tft. 12, U.S. Code, Eecs. 1134 to 

### 1138f. inclusive,, govern the 

### charter and organiaation uf “Budcs for Cooperatives”; mum&ate their 8eneral 

### oorporats powers (Sac. 1138); declare such carporations to be “instrumentalities of the United Staks”; provide for certain tax exemptions (Sec. 1138c); and, provide 

### other regulatory laws net necessasy ,ta enumerate here.



### Tha Heusten Bunk For 

### Cooperatives, ha- baca 

### thantered under 

### andbein govartled by the laws of the 

### UMed States above referred to, has the right to use the word ‘%a~&” in its ctlr - porati name and to csnduct the banking br\zefnee~sAItBnitad 

### by its charter in the SWe of Texas,, slnt24 it is arprassly exempted 

### fiiom the psevieians of Ar%icle 3/2-902, V.C.S., by virtue of the empbr

### shed pabiari the@oei rMva tpakd.

“Banks fer Cooperatives” ahaa%e~ed and Q&n8 bueinew under the hawe of the 

### UsritadSh*s, (12U.S.C. Sacs. ll34 arlseq) ar4 exaznpt from the previsions of Subset. Z(3), Art&A 342-902, V.C.Sa (Th4 Texas Banking 

### Coda sf 1943). Very truly y4Urs ATTORNEY GENERAL **OF** TEXAS 

# Jw **C. K,**  Richards

A8sisPbnt 

### CKR/mzwb APPROVED