Hon. J. M. Palkner, Commissioner OpinionNo. W-42

State Banking Department Capital National Bank Building Re: Classificationof real Austin, Texas estate held by a State bank for the purpose Dear Mr. Falkner: of a futurehome.

In your letteryou have submittedyour 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 themanner inwhich a bank may aaqulre real estate other than Its domicile. Inmany instanceswhere a bank has never owned its own home, it has acquired real estate for thatpurpose designating the property as its future domicile. Inmany instanceswhere a bank has never owned its own home, it has acquired real estate for thatpurpose de;s.gn;F the property as Its future domicile. instancesmuch timeha8 elapsed before the property could be put in condition to be occupied by the bank as its permanenthome. In these instances this departmenthas always construed such real estate and classified it as 'OtherReal Estate' with the re ulrement that it be depreciated each year 10 In accordancewith the 2 provisions of Art. 342-502until such time as it has been placed in condition or improved and actually occupiedby the bank as its domicile.
"The questionwe would like for you to answer is: 'Havewe placed the proper construetion on the meaning of the statute?"" Article 342-501,Vernon's Annotated Civil Statutes, provides as follows:

"No statebank shall,without prior written consent of the Commissioner, invest en amount inHon. F. M. Falkner, Page 2 (WW-42)

excess of fifty per cent (5074of Its capital and certified surplus in a domicile (Includingland 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 shallbe depreciated each ;Y ear not less than two and one-halfper 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 shallbe 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 Commissionermay permit a lesserpercentage to be charged off during any year." Article 342-502,Vernon's Annotated Civil Statutes, provides as follows:

"No statebank shall acquire real estate, other than Its domicile, except in satisfaction or partial satisfactionof indebtedness, OP in the ordinary course of the collection of loans and other obligations owing the bank. No statebank shall assign an original book value to such real estate in excess of its reasonablevalue 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 Commissionermay permit a 1;sser percentage to be depreciatedduring any year. The word "domicile" is defined by WebsterIs InternationalDictionary as follows:

"Aplace of residence, either of an individual or a family; a dwellingplace; an abode; a home or habitation.
"Law - A residence at a particularplace 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 determinedby 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
8ermsnenthome. Pecos & N. T. Ry. Co. v, Thompson, 167 S.W. 01 (Tex.Sup.Ct.),and thatmere intent tomake 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 shouldbe considered in arriving at themeaning Intendedby the Legislature. If the word "domicile"as used in Article 342-50,1, means an occupied "place of residence" then a statebank, evenwith 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 firstmove into the building and make it its "domicile"or bankinghome and then and then only would it have the statutoryauthority to invest its funds in acquiring it, We are therefore forced to the conclusion that the word "domicile"as used in the statute in questionmeans "a dwellingplace" 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 dwellingplace" and includes lands and buildings or landsupon which a building is to be constructed to be used as a futurehome 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