Hon. J. M. Palkner, Commissioner Opinion No. W-42 

State Banking Department 

Capital National Bank Building Re: Classification of real 

Austin, Texas estate held by a State 

bank for the purpose 

Dear Mr. Falkner: of a future home. 

In your letter you have submitted your request for 

opinion as follows: 

"Article 342-501, Vernon's 1943 Statutes, 

permits banks with certain limitations to own 

their own domicile. Art. 342-502, Vernon's 

1943 Statutes, sets out the manner in which a 

bank may aaqulre real estate other than Its 

domicile. In many instances where a bank has 

never owned its own home, it has acquired real 

estate for that purpose designating the property 

as its future domicile. In many instances where 

a bank has never owned its own home, it has acquired real estate for that purpose de;s.gn;F 

the property as Its future domicile. 

instances much time ha8 elapsed before the property could be put in condition to be occupied 

by the bank as its permanent home. In these instances this department has always construed such 

real estate and classified it as 'Other Real 

Estate' with the re ulrement that it be depreciated each year 10 2 In accordance with the 

provisions of Art. 342-502 until such time as 

it has been placed in condition or improved and 

actually occupied by the bank as its domicile. 

"The question we would like for you to 

answer is: 'Have we placed the proper construetion on the meaning of the statute?"" 

Article 342-501, Vernon's Annotated Civil Statutes, 

provides as follows: 

"No state bank shall, without prior written 

consent of the Commissioner, invest en amount in 
Hon. F. M. Falkner, Page 2 (WW-42) 

excess of fifty per cent (5074 of Its capital and 

certified surplus in a domicile (Including land 

and building) nor an amount in excess of fifteen 

per cent (15%) of its capital and certified surplus In its furniture and fixtures, Such domicile 

shall be depreciated each 

;Y 

ear not less than two 

and one-half per cent (24s of Its cost to the bank 

until such domicile Is charged down to twenty-five 

per cent (25s) of its cost, and the furniture and 

fixtures shall be depreciated each year not less 

than ten per cent (10%) of their cost to the bank 

until said account is charged down to One Dollar 

($l), provided that the Commissioner may permit a 

lesser percentage to be charged off during any year." 

Article 342-502, Vernon's Annotated Civil Statutes, 

provides as follows: 

"No state bank shall acquire real estate, 

other than Its domicile, except in satisfaction 

or partial satisfaction of indebtedness, OP in the 

ordinary course of the collection of loans and 

other obligations owing the bank. No state bank 

shall assign an original book value to such real 

estate in excess of its reasonable value at the 

time of acquisition and such real estate shall be 

depreciated each year ten per cent (10$) of such 

original book value until charged down to twentyfive per cent (25%) of its original book value; 

provided that the Commissioner may permit a 1;sser 

percentage to be depreciated during any year. 

The word "domicile" is defined by WebsterIs International Dictionary as follows: 

"A place of residence, either of an individual or a family; a dwelling place; an abode; a 

home or habitation. 

"Law - A residence at a particular place 

accompxed with an intention tc remain there for 

an unlimited time; a residence accepted as a final 

abode; a home so considered in law, Under modern 

civilized systems, a personIs civil status is determined by his domicile." 
Hon. J. M. Falkner, Page 3 (WW-42) 

Evidently you have construed "domicile" as used in 

Article 342.501 to mean a present, fixed and permanent home. 

It is true tnat "domicile" as used in various statutes requires 

"residence" in a place with the Intent to make it a fixed and 

8 

ermsnent home. Pecos & N. T. Ry. Co. v, Thompson, 167 S.W. 

01 (Tex.Sup.Ct.), and that mere intent to make a particular 

place one's "residence" is Insufficient to establish 'domicile". 

Brown v. Hows, 42 S.W. 2d 210, 163 Term. 178. 

It is an elementary rule in construing statutes that 

the context in which a word is used should be considered in 

arriving at the meaning Intended by the Legislature. If the 

word "domicile" as used in Article 342-50,1, means an occupied 

"place of residence" then a state bank, even with the prior 

written consent of the Commissioner, could not invest any of 

its funds in lands and buildings to be used as its banking 

home. The bank would have to first move into the building and 

make it its "domicile" or banking home and then and then only 

would it have the statutory authority to invest its funds in 

acquiring it, We are therefore forced to the conclusion that 

the word "domicile" as used in the statute in question means 

"a dwelling place" and includes lands and buildings or lands 

upon which a building is to constructed to be used as a future 

home of the bank. 

SUMMARY 

The word "domicile" as used in Article 842-501, 

v,c,s., means"a dwelling place" and includes 

lands and buildings or lands upon which a 

building is to be constructed to be used as a 

future home of the bank. 

wvQ:gs 

APPROVED: 

OPINION COMMITTEE 

Geo. P. Blackburn, 

B. H. Timmins, Jr. 

Mrs. Mary K. Wall 

Yours very truly, 

WILL WILSON 

Attorney General of Texas 

Chairman 

J. Milton Richardson