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<p>OFFICE OF THE ATI’ORNEY GENERAL OF TEiiS 
AUSTIN </p>
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<div class="ocr">Honorable Leo Brady + face 2

baw and trust company finte any other
syatem of haniing® roan a state syston,
puch &s tho onisting guarenty Cure syn
tem, or nonegscurity system, or does 16
Kean a conversion from a state bank in-
to a natdonal bank??

iu the cane connection it was stated,

This denartoont hea advised ites
etates tenis whe desira to rationgliza,
that Articia oe centorplates only «
eonrersian from ane aeyaeton of security -
to anotbor syaton of dgposlt scoumity
ae the law existed at tha date of that
cnactaont, and tast a atate bank cone
¥Yorting into o national wauld yot bo
reddired to liqguidata its aftfairg une
dor Articbos 539 ami 849 above cited.
Pieass uindly advise this dopartuont .*

Sho Attorney Gonoerelts dopartnont , in an opine |
ion written by Honorabio #. Ye Houth, Assistant Attorney
General, umlor deta of Fobruury s, 1937» Sivised the Com
risedoner as follogss

®2¢ 4s apparont te the kink of |
the writer that the luncuase in said
APticls 662, tinte any other syatom
of benking,* mans a atato system -
‘glich aa the puaranty fund system, of
bent cocuritr systam. Attenticn is
apeclally Called to tha last gentonee
of said Articles S62 an which tha
guaranty fumt tay and bond socurity
law cf this State ia exyrossiy mon
tionsi, and to 4rticle 542 of ths
Fonal Code of the State of Taxag,
Which Vas yassoa by tho samo Logige
laturs tist passed. Article noz of
the Civil todo whieh partiéecularly
rafcrs to puaranty think and sacurity
plane os tie guaranty funni syston
ind bond syatiz ¢f 1h Stato bans
of Toxas

That request to the Attorney Genoral'ts dopartuont
folloved «a cordes of opinions randared by tha tritar as
CQiuigs} to tha banking” Cormisgicnar to the sang cfioct, as
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<div class="ocr">Homemabia Loe brady = pacd 9

thS Serer Abosa eho,

Grinion Ka, 168, add@rosead to Mr. Brent, Dankins
Cordaclonsr duns 25, 2igd, doalt whith this prociss quace
tice, onl aus: eibat taines tha ominion statady

®X bot te sav, thora 49 no prevision
Za our statuts (nar contd there ba) poo
widens the tamphoats dataiia of a aeecaliad
conversion of a £2a¢e Hoots inte a Hational
Assuciaticn, In the vory nature eof things,
tas itaste torporation ig in all raspescts
subject tu the State lay, Whoteds toa Kat
domal Ascuciaticn in respect. to ites organie
gation 2s coverned by Fedaral Laun.®

In opinion No, 026; addroasod to Me. Hy Ay Jamison,
doparerontas Guanine, under data of Decorther €, 1099, 4% wag
SAF

Wirticte boc is now veanine Lone.
That is te say, the ovstem contomplated
4m tho ttatats anihorising = sala or
coryersion tinte any other eyvstom of
panking! bas reforcnes enly a6 the for~
mar cuaranty fant ayutanm and the former
pont scourity eyetor, socurin: dupesits.
Girnes tioss enactnonts, inteniad ta
UIPantas doaposita, have heen ropagied
u Gnorok Laws, 40th Lonmislatums, poste
lar sosaion, 2657, pe 30) tho Article
ausstai in 1623 les boceme chaoleto.
(Sou 9 T. 36 p. 157). hora is neth-
te npon which dt can oporata.That it
Orieinebkly contermpiat<t snly 4a change
€or tho ctaranty fund plan to thse bend
csoterity plan or vaeo versa is npnarent
for ooveral roasous ,®

tbo same view ves oxpressod in opinion No, 642,
likewise sudrousol to ir, damison, wader date of Fobruary
IQs LDS?

Tho souniness Of thos® opinicns, wo think, ia ate
tested by the fellewiugy Survons Court docisions, Tatas bank
& fut Coe Te thotin, Lankine Conmrdesicnary 280 Be Ve TTy
First “tata Hank Ob Ole We GuLLasrs OF Ge Be (2) 745,
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<div class="ocr">flenorable tea Brady + Page 4

You are tharePore oiviskt it is ths opinicn of
this dapartsent that iriiela Hoo of the devices Cavdih
Statutes bas 99 reference Vhataver to tho soecalload con
gersicn of @ Stato bans, ox Daw and trust cenmany, initio
3 national association, Tae crecniigvation of a nations)
espcedation 29 doterrmingd woolly by iag lave cf the United
States, umd as lavsoky gn 102 bamis ef tha Commtreller,
ani wuabovar satisfies tuose Lave ain that offieiagl will
geiffics to treaniza a national asscciaticn, vhetwher ita
asoets Of Capital steck cansists of oririnal contriputioe
ov those of soca clus? existing institution transferrad te
tho aasccinaticon far tha purposes cf organisation.

Prom tuis 2% Poltows that yeu cocen?t cusstion
should be ansucrad to the affact that tus retirines state
bank transferring its asssie and aifairs to a ropescd om
nowhy orranicod, or even an cnistiny national agseciatisa,
does not thercby lose ite cerporate exintenes or its basal
outity, tut the bank might tocreaftar te Liquddateal, either
throuch tho yrocess of voluntary Limudiuation undo /oiicies
630 aml 546 of tha Revises tiril Statutes, a’ threurh tke
precoss of a taking over by the Banling Comdasionor+

fruatine that what we hare wrdtten wilt have answer
od your questions aatisfactorily, vo aro

Yory truly yours
ATTORNEY GENERAL OF TITAS

Af

Cele Spoor
Assistant

OSehMit a

ATTORUEY GENERAL OF TEXAS

26

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