OF %?iCXAS 

April 16, 1959 

b&JHon. J. M. Falkner Opinion No. 597 

Commissioner 

Ranking Department Re: Whether amendments to Articles 

Austin, Texas of Association of a credit 

union should be approved by the 

State Ranking Board or by the 

Dear Mr. Falkner: Ranking Commissioner. 

You have requested the opinion of this office as to 

whether amendments to the articles of association of a credit 

union should be approved by the State Ranking Board or the 

Banking Commissioner of Texas. 

Article 2643, Vernon's Civil Statutes, providing for 

the incorporation of credit unions, is as follows: 

"Ten (10) or more residents of this State 

may associate themselves together by articles 

of agreement and form a credit union and m 

auuroval of the State %ankine Board. mav become 

a coru ration uuon comulvmz with such DrOVL 

gions zf theJa 

.- 

epulatine State banks as m;cy. 

be aunlicable tz ihe transaction of b iness 

ein authorized to be done. The?tate 

Ranking Board may permit the formation of such 

corporation when it is satisfied that the proposed field of operation is favorable to the 

success of a credit union, and the standing of 

the proposed members is such as to give assurance that its affairs will be administered in 

accordance with the spirit of this Law, and 

said Board may investigate or cause to be investigated such matters when deemed by it necessary 

to assist it in Its determination of such duties, 

the actual expenses of such investigation to be 

paid upon itemized statement thereof by the applicants for charter under this Law. If the 

charter is granted, the corporation shall reimburse said applicants for such payment. When 

ermission for the formation of such corporae- ion shall have been granted by the State Banking Board, the Ranking Commissioner shall issue 

a charter to said credit union to do business in 
Hon. J. M. Falkner, page 2 (WW-597) 

conformity with the provisions of this Title 

upon the 

ii 

ayment of a charter fee of Ten 

Dollars ( lo)." (Emphasis added). 

Article 2467, V.C,S., provides: 

'INo such credit union shall receive deposits or payments on account of shares, or 

make any loans until its by-laws have been 

approved in writing by the Banking Commissioner, nor shall any amendment to its by-laws 

become operative until they have been so approved." 

Articles 2461 through 2484b 

which govern the formation and 

Vernon's Civil Statutes, 

conduc E of credit unions, contain no specific provision relating to amendments to the articles of association. However, Article 2463 provides that, upon 

approval by the State Banking Board, ten or more residents of 

Texas may form a credit union Wpon complying with such provisions of the law regulating State banks as may be applicable to 

the transaction of business as herein authorized to be done." 

Article 342-312, Texas Banking Act of 1943, provides 

'for amendments to articles of association of State banks to be 

filed with and after approval by the Banking Commissioner of 

Texas such amendments shall thereupon become effective. However, 'it is provided that any amendment changing the domicile 

of any State bank to another city or town shall not be effective until approved by the State Banking Board in the manner 

provided for the approval of an original application for charter. 

The use of the emphasized phraseology contained in 

Article 2463 V.C.S. evidences the legislative intent that the 

Banking Commlssioner'of Texas should approve all amendments to 

the articles of association of credit unions in the same manner 

required for the approval of amendments to the articles of association of State Banks. The approval of amendments to the articles of association of credit unions by the State Banking Board 

is not required except under the conditions prwided for in 

Article 342-312, V.C.S., in the case of approval of amendments 

to articles of association of State banks. 
Hon. J. M. Falkner, page 3 (W- 597 1 

SUMMARY 

The State Banking Commissioner shall approve 

all amendments to articles of association of credit 

unions except where the approval of the State Banking Board is required under the provisions of Article 342-312, V.C.S. 

Yours very truly, 

WILL WILSON 

Attorney Gene2 of Texas 

CKR:wb 

BY 

p&J&& 

C. K. Richards 

Assistant 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, Chairman 

Richard 0. Jones 

Milton Richardson 

Marvin H. Brown, Jr. 

Robert T. Lewis 

David Thomas 

REVIEWEDFOR THEATTORNEYGENERAL 

BY: W. V. Geppert