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OFFICE OF THE ArCORNEY GENERAL OF TEXAS AUSTIN

Boaorrblr Qmrlr~ tsokhart Mate TreaMrer **Aurtln, Toraa**  *;--.

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quert for an opleloa,
County Clerk **0 1** **inion** a8 **to 4**  **00, R.&S.,**  19, qremptr primit* ularly Y, L. xooay **orated),.** Oalvertoa, the wmdaent on en ln~trumsntr.

~Revlred Bitll St*tutea of Perar.

TheNote StampRooording TaxAct, to-tit, orid 7047r, prorlder thrt %o.
. . inrtrummt rhdl **br**y: - 

### 324

Bonorebl6 Charlay Lo&hart, page 2

ill@&**or** reoordrdby u\raotmtyolrrkla this State until thrre~hsa been affIxad tbl uoh Inatrunent atuapa In aooordanoa wIth.the provieIona* of aald atatuts, and fixer a tax baaed upon the amount of the note6 or obligation6 eaourP br the inatrusant riled or **reoordad,** and provlaaa **that** payment af tha tax . . . ah611 **be** avId6noad br afflrlng the **atampa** Iaaued **bf** the State through ths Btate Treaaurar and the County Clarka* a6 pr6aorIbad In the atetuta.

Senate Bill 97, paaaea bj **the** Forty-aavanth LagIrlature eh8ngaa the taxing l eotlon of the 14w, to-wit, pangraph 1.1,by aaaleg lasguag6, aa iollwar

I **aanta,'n&** nor ahall thI8 aectfoa apply to Inatru**or other**  &lf of Uatloeal Bum obligation8 **t&an br**  **or de**  **be** the law6 ot the UnIt.ed3 Aaroalatlona org*aIcwd ueaer tator, nor lnatluaenta, notee or other obllgatloer token by or onbahalf **of State**  Bankln Corporation6 of the State oi Taxaa **errateb** under t a itle 16 of the Revlard Civil Statutaa of Taxae,

. . .
It rfll ba notloed that the only *State B6nkIng Corporattona’ exeapted **by** bald L&mateBill 97 6ra thoaa l oruata& under Title 16 of the RevIeea Civil Statutea of Texaa.“‘~Ae l xam;aatIon of aald **Title** 16 diaeloaea that the only referease as&aIn it to private **benkrln# ~natitutioaa**  **18** la hrtiole 641 (Chapter 8, Title 16, Revlaed Civil Statute6 or Taxsc), vhloh read8 aa iollowar

*It Ia hemby daolarad **to be**  **the** publio polloy o? thir .Stata **that** no addItIon61 wItate,

. banking InrtltutIon or buainaas l h6ll b6 orgaeIred or a6tabllahrd, and it ah811 b6 ual6tiul for say paraoa, aaaooIatIon oi par6on6, prrtnarahipa **or truateea**  aotinq under any oommoe lav deolaratloe **of truat**  **to hareartar**  orgaelre or 

### l atablIah, begin or raaume thr operatlon~oi any te:“g in6titutIon or bu6lneaa xlthln thle

It ahall be the **duty** o? private ledIvI&- uala ir ?Iraa engaging In the banking buaInaea **to** use after the e6me under whIoh the buaIneea la **oontluotod,** tha word In paranthaaea ‘whoorporeted’, nnd **fstlura** to do 80 ahall aubjeotFionorabla Oharlay Loekhmt, pago S

thaottaadarto a

## peneltyofonehundraddollarsto be aollaatedia the **maeeer provItl8d**  la Art1010 491.’ Wela auma

**that** the private baeklng InatItutIan to vbloh you ;;f;;2Ta

l atabllehed bafora l ab¶Artlale 841 rant into etie4t

. TM18 16 provIdaa for the lnoorporatioe of varlooe 

### ktnaa o? banklng InatItutIona , areatea the o??Iaa o? Banking CouIaaIonar a? 

### Taua an4 giver l ald **0r?ioar** oertaln 

### powers, and regulates the oparatloe o? bank6In general. Your letter ahowa that the private banking ;natItutIon you ark about la onIeaorporated. **It** balng unlnoorporated, ve era unable **to** sea how lt oould**be ‘** **orrated** ue&ar Title 16." Tharafora the l xeeptlon areatad by 6aiQ BenateBill 97 door not apply to ft.

WIvi11now takeup **four** other quaatIoa. &apt&r 9 ~ArtIolaa 642 to 849 Iaolua~va) **of** Iltla 16 o? 

### the lW~*ed Civil Statutra of 

### Taxaa wee emoted by the Thirty-•lxth LagIalatura la 1917, and 16provided for the organlratloe an6 operation 0r four bed **leveataent** oompaaIaa. TheooapanIaa orgualrail under raid ohaptar are oomoonl;l keoun as Rorrla Plan Banks, although thnt name is noturea Inthe body o? the 

### atatota, but It is used In the herding of bald Chapter 9 (ArtIolaa 842 to 642 inaluaiva) In the raoodlfioatioa of the Revised Civil Pltatutea of Texas aQaptad **by** the Thirty-ninth LegIalature in 1995. We la auuthat r ott haverafarmoe to the oorporatIoaa organtrodunder the tone o? raid Gh8pter Qand known as Worrla Plan baeka.

Chapter 9 o? iltla 16 reuinetl unohragatl from 1917 until 1939, l nUduring that tlma Artiole 546 in raid ohnpter grant4 power6 **to** the oorporatlona organlxed theraunder in language 86 rollowe:

*her loan and Invaatnant ooapany, $a add:- tlon to the pokers oonfamd upon oorgorat~oaa >r thr general oarporatloe law, ahall have the iollowlng powerat

‘1. Tolend aone? and to aeauot Ieteraat there- ?or Inaavaeoa at a ratenot to exoead mixper oant perRoaombla Qmrlev Lookhart,page 4

annum, and Inaddition to require and noeIva uniform weekly or monthly inrtallmante on Its oertI?Icataa of Indebtednaae purohaaad by the borroweraImultaneoualy with the raid loan trana8otIon, or othrmIse, ana QledgBa with the oorporation amaaourlty for the said loan, with or without an allawnnoe of Intareat on auoh inatal&- maata.
l 2.OP **To** mall or negotiate bonda, **notea,** oartl- ?loatea Inveatmenb and ahoaea In motion for the payment of money at thetime, l lthar flxeb or unoartaln, and to reoelva paymenta thara?or In lnatallmaata or otherwise, with or without an allomlnoe of ~nteraat upon auoh Ieatallmenta.

‘S. To aharga tar a loan madrpursuant to thla artIala one dollar far eaoh ftfty dollara or fraotlon thereof loaned, foraxpen8aa, Ieoluding my exaaInatIon or InveatIgatIon a?the oharrotar and alroumatanoea a? the borrower, oo-maker or l ufaty, and thedrawingand taking aaknovladpent of naoeaaar papers or other axpenraa inourred In raking the Iour; no oharge l hnll be aolleoted unleaa a lean ahall have bean made a6 a reault of l uoh l xaaleatIon or Inv~atIgat~on.* Sn the oaae of Kaliakl v. Qaarett, 109 8.Y. (2d) 640, (Writ or error ratuaab) daoldrd by the Oourt of CivilAppeals at 9m Antonio In 1937, It 

### warnhqlc? that oorporationaorgaeIred and operating under raid Chapter 9 of TItla 16, to-wit, Xorrie Plan banks are not oorporatlona *with tinking and diaoounting prlvIlegaa.’ That bslng true, they are not Btete Banking CorporatIone.

In 1939, **by** 6enate 3111 266 entItlad l Povera

of WorrIa PIan Banka Enlarad,*theLegIalatura ohurged paragraph 2 of Artlole 546 f! above quoted) to raad se tollowar
‘2. To reeelva moneyon time drpoalta, and to purohaae, mall, dIaoount, or negotiate bonda, notea, oarti?~oetaa of iavartment and oho8aa In aotion for the payment of money 

## at a time either fixed or unoertain, and to receive peymanta therefor In ~nat~llmenta or otharwtra, with or without an allouanoa of Intareat upon auoh lnrtallaenta. Topurchaaa **atook** In Federal DaDoeIt Inauranoe Corporation. Am amended Aota 1939, 46th Lag., p. 72, 6eo. l.*. ’

Ronorablo Charlrl Looahart, &O 8

Seld Senate Bill 968 alro added a newartiole knowna8 Art1010 54Ra, rending 81 follower

‘All oarpomt~onr now ohartared underthe provlrlooe of thl8 ohapter ney adopt the power8 herein grantrd by fllleg a oertillontr to ruoh effeotwith the Comaierlonof BankIng, provldl dhowever, that the lnooroorE~tlon of oorporatlonr In the future under thlr ohapter rhall n&e appllontlon to the State Banklng Board 8n4 be governed by the prorlrlonr of **Chapter 2**  **oi** thlr title. Sea; 2.* Added Aote 1939, 46th Leg., p. 72,

i)n November7, 1939,thtrdepartmentheld in Attorney dmernl's Opinion Ho. O-1542 thnt raid *8enateBill WI oon8tltutrr the oorporntlon8 oreated **under** ahspoor 9, rupra (Ch. 9 of Tit18 18) oomorate bodler with banking and dl8oountlng prlvll8ge8, within the aranlng OSthe Conrtltutlon, upon their oempllnnoewith therequlrementr of th8 a06 ltcreli, the amendment8 thereto, and thr oon8titution.a YO8till adhere to that ODInion end the Fbn8on8 glren thereln, and w8 are

l nolo8lng a oopy of the 88.me.
The rxemptlonoreated by the **~Botr**StampReoordlng Tax amendm8nt, to-wit, Senate Bill 97 by the Forty-rrt8nth Legl8latur8, applies **to** “note0 or other obllgatlon8 taken by 0~ on behalfof S t Jn.nklu Qoraorrtlo~ **of** the **State** -sLF of Texas oropted under ltlelB.* Are Mom18 Pl8n bank8

‘State Banking Oorporat;on80a Under the holding o? the oa8e of Kallrkl t. Gosrrtt, 8upra, they wer8 not under the statute a8 it read st that tlm8, vhloh wa8w to th8 parecge of Senate Bill260 (8ntltlrd *PowoF Of Morrlr Plan Banka Enlarged') In 1939 tinoral'8 Oplnlon lo. but under the holding of Attorn8y O-**i**1142raid Sonat 8111 268a~dr **them** State Banklng Corporatlonr %pon thelr oomplianor with the rot lt88lf, the anrndmrntr thereto, and thr Conrtltutlon.'

Ouran8wer **to** your fir86 quertlon 18 **that** not88 l rsl otherobllgatlonr taken by **or** on behalf OSprlvPt8 unlnoorporated banking lnetltutlonr~ate not **exempt from**  the tax lerled by the Note Stan? Faoording Tax Aot a8 amend8dby'Smate Btll 97, Forty-reventh L8gi8lbtUr8.Honorable aharl8~ Lookhart, pwo 6

i,,: < Our an8wer to your reoondquertlon $8 that not08 and other obllgationr taken br or onbehalf of Rorrlr P&an **Bnakr** (Ire not exempt l? raid lnstltutlon wa8 lnoorporatrd prior to the pnrrage of 98nat8 Bill 266 in 1939 and ha8 not rlnoe adopt84 the power8 granted by raid Billi **but** l uah aote8 and other obligatlonr are exoaspt if raid lnrtltutlon wa8 lnoarporated rlnce the l ffcctlve date of raid 0enate Blll 266 in 1939, or ha8 atlopted ln the manner prerorlbed **by** the rtatute the eddltlonal poverr granted by raid Senate 2111 260.



### ‘“~hm-/~ I FIRSTASSISTANT ATTOE iNEYGENERAL ,,@A '- - cool1 0. Rotloh CCRIJ8 A88i8taat i