Honorable Robert E. Stewart Deputy Commissioner Department ofBanking John H. Reagan Building Austin, Texas 78711

Dear Mr. Stewart: Opinion No. M- 464

Re: Whether the Banking Commissioner has the powey, authority and duty to require National Banks to comply with the provisions ofSection la ofArticle 342-910a,
v. c. s.
Inyour recent letter you request this office to render an opinion
onthe following questions:

‘I(1) Does the Banking Commissioner have the authority, power and duty to require National Banks to cease and desist acceptance of deposits onSaturday under the circumstances set out?

“(2) Ifyour answer is inanywise inthe negative, please advise whether the Banking Commissioner has the authority, power and duty to permit the State Banks to accept Saturday deposits competitively with the manner ofacceptance by the National Banks. ‘I
Two factual situations are presented inyour letter. The first in-~ valves anational bank which has filed with your office aresolution by its Board ofDirectors that itwill be closed for general banking purposes on Saturday but remain open to perform limited banking service on such day pursuant to Section la ofArticle 342-910a, Vernon’s Civil Statutes. In the other situation, you refer to anational bank which has not elected to be closed onSaturday or any other weekday inaccordance with Section la, supra. Both banks are accepting deposits on Saturday.

Article 342-910a reads inpart, as follows:



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“Sec. la. Any bank or trust company doing business inthis State, may, at its option close for general banking purposes~ onSaturday or any other weekday provided such day is designated at least (15) days inadvance by adoption ofaresolution concurred inby a~majority ofthe Board ofDirectors thereof

. ., and by notice posted inaconspicuous place in such bank or trust company for at least such time, and by filing acopy of such resolution certified by the cashier of such bank or trust company inthe office ofthe Commission ofthe Banking Department ofTexas Any such election to so close shall remain in effect until a subsequent resolution shall be adopted and notice thereofposted and acopy thereof filed inthe manner above provided. Ifany bank or trust company elects to close for general banking purposes on Saturday or any other weekday as herein provided, itmay, at its option, remain open on such day for the purpose of performing limited banking services Limited banking services shall mean: transit operations, cashing and certifying checks drawn on the ba,nk performing such limited services, receiving payments on obligations due to such bank or to any other party for which such bank is acting as collection agent, making change and providing access to safety deposit boxes. Such day upon which such bank or trust company may elect tobe closed for general banking purposes shall with respect to such institution be treated as Sunday or the Christian Sabbath for all purposes and not abusiness day; provided that ifsuch bank shall elect toperform limited banking services on such day, the same shall not be deemed alegal holiday for the performance oflimited banking service. Any bank or trust company which elects to close for general banking purposes on Saturday or any other weekday but which elects toperform limited banking services shall not be subjected to any liability or loss of rights for performing limited banking services or refusing toperform any other banking services on such day.

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Honorable Robert E. Stewart, page 3 (M-464)

“Sec. lb. The provisions ofSection la of this Act shall be completely permissive with each individual bank or trust company inthis State, and
nobank, trust company, clearing house association, or group ofbanks or trust companies, shall discriminate against or refuse its services to any bank or trust company or enter into any agreement to discriminate against or refuse its services, either directly or indirectly to any bank or trust company which may or may not elect to exercise any ofthe options contained in Section la ofthis Act. The provisions ofthe Antitrust Laws ofthis State shall be applicable to the provisions ofthis Act, and the Attorney General of Texas shall institute and prosecute any legal proceedings authorized by law to enforce the provisions ofthis Act, including forfeiture of right to dobusiness in Texas for violation of such provisions. ”

It is the opinion ofthis office that Section la was enacted for the benefit ofbanks. Its primary purpose is topermit banks or trust companies to close on days other than legal holidays. Furthermore, itpermits banks
or trust companies to be open to perform limited banking services without subjecting themselves to certain liabilities or loss of rights that might otherwise be incurred on aregular business day or refusing toperform any other banking services on such day.

There is nolanguage inArticle 342-910a which makes it an offense for abank to engage in general banking services on aday ithas designated tobe closed or open for the limited purpose ofperforming limited banking services. On the contrary, Section lb states that Section la is completely permissive with each individual bank or trust company. The first sentence ofSection la reads that abank or trust company may, at its option, close for general banking purposes on Saturday or any other weekday. In addi-

. tion, it states ifany bank or trust company elects to close for general banking, itmay, at its option, remain open on such day for the purpose of performing limited banking services.

In addition, there is nolanguage in Article 342-910a or inany other provision ofthe Texas Bankings Code granting the Banking Commissioner

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the power or authority to order abank to cease and desist from performing services other than those defined as limited banking services on aday ithas designated to be closed or open for limited banking purposes.

It is the opinion ofthis office, therefore, that Section la is purely discretionary with each individual bank, and the Banking Commissioner has noauthority, power or duties with respect to Section la. The answer toyour first question,, therefore, is that the Banking Commissioner has
noauthority, power or duty to require National Banks to cease and desist from accepting deposits onSaturday under the circumstances you set out. Furthermore, you request this office to advise “whether the Banking Commissioner has the authority, power and duty to permit State Banks to accept deposits competitively with the manner ofacceptance by National Banks. ‘I This question has been interpreted to ask whether the Banking Commissioner can permit aState bank to accept deposits on aday ithas elected tobe closed but remain open for limited banking services and continue,to gain the benefit ofSection la.

An administrative agency has only such powers as are expressly granted to itby statute together with those necessarily implied from the authority conferred or duties imposed. See Stauffer v. San Antonio, 162 Tex. 139 344 S.W. 2d 158 (1961). Where the Legislature acts with respect toaparticular matter, the administrative agency may not so act with respect to the matter as to nullify the Legislature’s action even though the matter be within the agency’s general regulatory field. State v. Jackson, 376 S.W. 2d 341~(Tex. Sup. 1964).

InSection la, the Legislature has expressly defined the type of banking services abank or trust company can perform on alimited banking service day. Such definition does not include the acceptance ofdeposits. No authority is found inthe Act granting the Banking Commissioner, expressly or impliedly, the authority to expand or limit this definition. .It is the opinion ofthis office, therefore, that the Banking Commissioner does not have the authority, power or duty topermit State banks to accept deposits onaday ithas designated tobe closed for general banking purposes but open to perform limited banking services. The State bank, like the

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Honorable Robert E. Stewart, page 5 (M-464)

National bank, may receive deposits on such day; however, itwould be subjecting itself to liabilities or loss ofrights that itmight incur on a regular business day and would be waiving any benefits itmight derive from Section la.
SUMMARY
The Banking Commissioner has noauthority, power or duty to force aNational bank to comply with the provisions ofSection la ofArticle 342-910a, Vernon’s Civil Statutes, nor does he have the power, authority or duty to permit State banks to accept deposits on a day ithas designated tobe closed for general banking purposes, but open for limited banking services without having said bank waive the benefits provided by said Section.

eneral ofTexas Prepared by Edward H. Esquivel Assistant Attorney General
APPROVED: OPINION COMMITTEE
Kerns Taylor, Chairman George Kelton, Vice-Chairman James McCoy Gordon C. Cass James Quick Fielding Early
Meade F. Griffin Staff Legal Assistant
Hawthorne Phillips Executive Assistant 

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