THE ATETOIPSEY~'@E?YEEZAL 

QF TEXAS 

Opinion No. C- 87 

Honorable Jesse James Opinion No. WW-1498-A 

State Treasurer of Texas 

Austin, Texas Re: Whether credit unions should 

report .personal property subject 

to escheat under Article 3272a 

V*C.S., or report their dormant 

. or Inactive accounts under 

Dear Mr. James: Article 3272b, V.C.S. 

We, have been requested .to rec~onslder Attorney General's 

Opinion w-1498 from the standpoint of the possibility that the 

language used.thereln may conceivably be construed as holding the 

credit unions to be banks or banking institutions. Since It was 

not the intent, of this office to so hold, and in order to clarify 

any misconception whlch,has resulted from the language used 

therein, we. hereby withdraw W-1498 as originally released and 

substitute the following as the opinion of this office. 

You have requested the opinion of this office by asking 

the following question, quoted from your letter of November 27, 

1962 : 

"Will you please advise this department, 

by official opinion, whether credit unions 

organized either under the laws of the~StaCe of 

Texas or of the United States, should report 

personal property subject to escheat under Article 

3272a, R.C.S., or report their dormant or Inactive 

accounts under Article 3272b, R.C.S." 

Article 3272a, Vernon's Civil Statutes, requires all 

"persons" to report personal property In their possession which 

is subject to escheat. Section l(a) of that Article defines 

"person" and Is as follows: 

"(a) The term 'person' as used In this 

Article means any Individual, corporation, business 

association, partnership, governmental or political 

subdivision or officer, public authority, estate, 

trust, trustee, officer of a court, liquidator, two 

.(2)or more persons having a joint or common Interest, 

or any other legal, comme,rclal, governmental or 

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, 

Honorable Jesse James, Page 2 (W-1498-A) 

political entity, except banks. savings and loan 

associations. banklnn organizations or lnstltutlons." (Rnphasla supplied.) .' 

If credit unions are excluded from ArtIdle 3272a, by the 

provision quoted above, they would then come within the scope of 

Article 327213 Vernon's Civil Statutes, Article 3272b, applies 

specifically to holders of personal property which are excluded in 

Article 3272a Section l(a) supra. These'holders are termed 

"depositoriesa In Article &2b, Section l(a), which states: 

"(a) The term deoosltorv as used In this 

Article means any bank. savings-and loan association, 

banking inatltutloh or organization which receives 

and holds for others deposits of money or its equiva- 

'lent In banklnn practice or other personal p roperty 

In thl St t I th St t ror reeld 

known to $v~*r%d~d"lne~hlsaS~&e.'I 

ents last 

(mphasls 

supplied.) 

This provision uses the same generic words in defining 

deposltorles as Article 372a Section l(a), uses in specifying 

those entitles excepted from its application. It will be noted 

that although Article 3272b, Section l(a), uses additional words 

In describing depositories these additional words are merely a 

clarification of what the fiegislature meant by the terms "banking 

organizations or lnstltutlons" in both Article p72a and 3272b. 

Obviously, a credit union Is not a bank nor 1s It a 

savings and loan association nor banking lnstl&utlon In any strict 

sense. The question then becomes whether a credit union is "an 

organization wfiich receives and holds for others deposits of 

money or Its equivalent in banking practice" wlthln the meaning 

intended by the Legislature in Article 32Eb. 

Title 46 V.C.S. authorizes the formation of credit unions 

and places them'under the supemrlsion of the State Bankln Board 

and the Banking Commissioner. 

2484b, V.C.S. 

See Articles 2463, 2465, 2$84 and 

Federal credit unions are organized under the provisions 

of 12 U.S.C.A. 1753, and subject to the provisions of Title 12, 

Chapter 14, U.S.C.A. The definition of a rederal credit union in 

12 U.S.C.A. 1752, Is the~same as that found In Article 2461, 

V.C.S. defining state credit unions, .Federal credit unions are 

under the supervision of the Bureau of Federal Credit Unions in 

the Department of Health Education and Welfare and the restrictions 

and limitations imposed &y Chapter 14 and administered by that 

Bureau are very similar to the Texas statutes applicable to credit 

unions. 

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Honorable Jesse James, Page 3 (WW-1498-A) 

Article 2462, V.C.S., provides that “A creditunion may 

receive the savings of,lta: members In payment for sharesor as 

9w? l l 

It may lend money to Its members within the nmits 

an au ject to the restrlctlons provided by law . . ." Bl?tlCle 

2466 V.C.S. provides that “The by-laws of! the credit anions 

shali prescribe: 6; The conditions on which deoosltsmay 

be received and $thd&wn " In Article 2474 V.C.S.,. werlnd that 

"Shares may be issued and'deposlts received in the name of a~mlnor 

and such shares and deposits may ., 'In the discretion of the directors, 

be withdrawn by such minor or by Ma parent or guardian . . ." 

A federal credit union may lend money to members, to the 

United States of America, or other speclried borrowers. It may 

receive payments from Its members on shares, and may borrows from 

any source amounts up to 502 of Its paid-in and unimpaired capital 

and~surplus. These powers are provided in 12 U.S.&A. 1757. 

Presumably, a federal credit union may borrow money by receiving 

deposits from members or others. 

It is apparent that the nature of a federal credit union Is 

no~t significantly different from that of a state credit union, 

other-than being organized under federal law and subject to federal 

regulation. 

The Legislature did not limit the scope of Article 327213 

Section l(a), to the words "bank" and "savings and loan assocla~lon," 

but Included the words "organization which receives and holds for 

others deposits of money or Its equivalent in banking practice." 

One of the principal rules of statutory construction, ,which we 

consider applicable here, Is found-in Texas Bank & Trust ~Co. v. 

Austin, 115 Tex. 201, 280 S.W. 161, 162 (1926) : 

"And yet no rule of a statutory construction 

is more universally recognized than that which 

compels the courts to give some effect to every 

express declaration of legislative intent. The rule 

is clearly stated In M.K.&fJ!. Py. Co, of Texas v; 

Mahaffey 105 Tex. 398;150 S.W. 881 citing 

Justice karlan's Opinion for the United States 

Supreme Court In Montclair v. Ramsdell, 107 U.S. 19, 

2 S.Ct. 395, 27 L.Ed. 431, where It Is said: 

'It Is the duty or the court to 

give effect, If possible to every clause 

and word of’ a statute avoiding If It 

may be, any construction which implies 

that the Legislature was Ignorant of the 

meaning of the language It employed."' 

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Honorable Jesse James, Page 4 (WWl498-A) 

If the words "an organization which receives and holds for 

others deposits of money or Its equivalent in bsnking practice" 

are to have meaning when used In addition to the tems "bank" and 

"savings and,loan association, I' In Article 3272b, we belletie~ that 

credit unions are within the meaning of those words. Therefore 

it la our opinion that both federal credit unions and state credit 

unions should comply with Article 3272b, and report their dormant 

and Inactive accounts pursuant thereto. 

SUMMARY 

Credit unions, organized under the laws of 

the State of Texas or of the United States, should 

report their dormant or Inactive accounts under 

Article 3272b, V.C.S., rather than report personal 

property subject to escheat under Article 3272a, 

V.C.S. 

Yours very truly, 

WAGGONER CARR 

Attorney General of Texas 

By: ~~i~~ 

J. Albert Pruett, Jr. 

Assistant Attorney Qeneral 

JAPjr/ca 

APPROVED: 

OPINION CoMlrIITTEE 

W. V. Geppert, Chairman 

w. 0. shu1tz 

Wm. E. Allen 

Marietta Payne 

Malcolm Quick 

APPROVKD FOR THE ATTORNEY GENERAL 

BY: Albert P. Jones 

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