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 tha t sti% cG~oZtYonsear~autla 

es to the 

orieed under 

5 e Ufiited 

Stat08 to con&e”t Wh et&in&a br tx9 useXiXW%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 and bein 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 empbrshed pabiari the@oei rMva tpakd. 

“Banks fer Cooperatives” ahaa%e~ed and Q&n8 bueinew under the hawe of the Usritad Sh*s, (12 U.S.C. Sacs. 

ll34 arl seq) 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