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 shouldbe approved by the State Ranking Board or by the Dear Mr. Falkner: Ranking Commissioner.

You have requested the opinion of this officeas 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 creditunions, is as follows:

"Ten (10)ormore 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 Boardmay permit the formation of such corporationwhen it is satisfied that the proposed field of operation is favorable to the success of a creditunion, and the standing of the proposedmembers is such as to give assurance that its affairswill be administered in accordancewith the spirit of this Law, and said Boardmay investigate or cause to be investigated suchmatterswhen 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 charterunder 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 creditunion to do business inHon. J. M. Falkner, page 2 

### (WW-597)

conformitywith the provisions of this Title upon the ii

ayment of a charter fee of Ten Dollars (lo)." (Emphasisadded).
Article 

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

'INo such creditunion shall receivedeposits or payments on account of shares, or make any loans until its by-lawshave been approved inwriting by the Banking Commissioner,nor shallany amendment to its by-laws become operativeuntil they have been so approved."
Articles 2461 through 

### 2484b which govern the formation and Vernon'sCivil Statutes, conduc E of credit unions, contain no specificprovisionrelating to amendments to the articles of association. However,Article 2463 provides that,upon approval by the State BankingBoard, ten or more residentsof Texasmay form a creditunion Wpon complyingwith suchprovisions of the law regulating State banks asmay be applicable to the transaction of businessas herein authorized to be done."

Article 342-312, Texas BankingAct of 

### 1943,provides 'foramendments to articles of association of State banks to be filed with and after approval by the BankingCommissionerof Texas suchamendments shall thereuponbecome 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 themanner provided for the approval of an originalapplication for charter.
The use of the emphasizedphraseology containedin Article 

### 2463 V.C.S. evidences the legislative intent that the Banking Commlssioner'ofTexas shouldapprove all amendments to the articles of association of credit unions in the samemanner required for the approval of amendments to the articles of association of State Banks. The approval of amendments to the articles of association of creditunions by the State Banking Board is not required exceptunder the conditionsprwided 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 ofArticle 342-312, V.C.S.

Yours very truly,

WILL WILSON Attorney Gene2 of Texas

CKR:wb BY p&J&&

C. K. Richards Assistant

APPROVED: OPINIONCOMMITTEE
Geo. P. Blackburn, Chairman Richard 0. Jones Milton Richardson Marvin H. Brown, Jr. Robert T. Lewis David Thomas

REVIEWEDFOR THEATTORNEYGENERAL

BY: W. V. Geppert