. 

OFFICE OF THE ArCORNEY GENERAL OF TEXAS 

AUSTIN 

Boaorrblr Qmrlr~ tsokhart 

Mate TreaMrer 

Aurtln, Toraa 

*;- -. 

. 323 

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. 

The Note Stamp Rooording Tax Act, to-tit, orid 

7047r, prorlder thrt %o. . . inrtrummt rhdl br 
y: - 

324 

Bonorebl6 Charlay Lo&hart, page 2 

ill@& or reoordrd by u\r aotmty olrrk la this State until 

thrre~hsa been affIxad tb l uoh Inatrunent atuapa In aooordanoa wIth.the provieIona* of aald atatuts, and fixer a tax 

baaed upon the amount of the note6 or obligation6 eaour 

P 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 Inatruor other 

&lf of Uatloeal Bum 

obligation8 t&an br or de bethe law6 ot the UnIt.ed 3 

Aaroalatlona org*aIcwd ueaer 

tator, nor lnatluaenta, notee 

or other obllgatloer token by or on bahalf 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&mate Bill 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&a In 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 aubjeot 
Fionorabla Oharlay Loekhmt, pago S 

tha ottaadar to a penelty of one hundrad dollars to be aollaated ia the maeeer provItl8d 

la Art1010 491.’ 

We l a a uma that the private baeklng InatItutIan to vbloh you 

;;f;;2Tl a 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? bank6 In 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 Benate Bill 97 door not apply to ft. 

WI vi11 now take up 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 16 provided for the organlratloe an6 

operation 0r four bed leveataent oompaaIaa. The ooapanIaa 

orgualrail under raid ohaptar are oomoonl;l keoun as Rorrla 

Plan Banks, although thnt name is not urea In the 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 l a a uu that r o tt have rafarmoe to 

the oorporatIoaa organtrod under the tone o? raid Gh8pter 

Q and known as Worrla Plan baeka. 

Chapter 9 o? iltla 16 reuinetl unohragatl from 

1917 until 1939, l nU during 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 powera t 

‘1. To lend aone? and to aeauot Ieteraat there- 

?or In aavaeoa at a rate not to exoead mix per oant per 
Roaombla Qmrlev Lookhart, page 4 

annum, and In addition to require and noeIva 

uniform weekly or monthly inrtallmante on Its 

oertI?Icataa of Indebtednaae purohaaad by the 

borrower aImultaneoualy with the raid loan trana8otIon, or othrmIse, ana QledgBa with the oorporation am aaourlty 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 the time, l lthar flxeb or unoartaln, and to reoelva paymenta thara?or In lnatallmaata or otherwise, with or without an alloml noe of ~nteraat upon auoh Ieatallmenta. 

‘S. To aharga tar a loan madr pursuant to 

thla artIala one dollar far eaoh ftfty dollara or 

fraotlon thereof loaned, for axpen8aa, Ieoluding 

my exaaInatIon or InveatIgatIon a? the oharrotar 

and alroumatanoea a? the borrower, oo-maker or 

l ufaty, and the drawing and taking aaknovladpent 

of naoeaaar papers or other axpenraa inourred In 

raking the I our; 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 Civil Appeals 

at 9m Antonio In 1937, It warn hqlc? that oorporationa orgaeIred 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 P o verof a 

WorrIa PIan Banka Enlar ad,* the LegIalatura ohurged paragraph 2 of Artlole 546 f! above quoted) to raad se tollowar 

‘2. To reeelva money on 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. To purchaaa 

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 new artiole known a8 

Art1010 54Ra, rending 81 follower 

‘All oarpomt~onr now ohartared under the 

provlrlooe of thl8 ohapter ney adopt the power8 

herein grantrd by fllleg a oertillontr to ruoh 

effeot with the Comaierlon of BankIng, provldl d however, 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 November 7, 1939, thtr department held in Attorney dmernl's Opinion Ho. O-1542 thnt raid *8enate Bill 

WI oon8tltutrr the oorporntlon8 oreated under ahspoor 9, 

rupra (Ch. 9 of Tit18 18) oomorate bodler with banking and 

dl8oountlng prlvll8ge8, within the aranlng OS the Conrtltutlon, upon their oempllnnoe with the requlrementr of th8 

a06 ltcreli, the amendment8 thereto, and thr oon8titution.a 

YO 8till adhere to that ODInion end the Fbn8on8 glren thereln, and w8 a r e l nolo8lng a oopy of the 88.me. 

The rxemptlon oreated by the ~Botr Stamp Reoordlng 

Tax amendm8nt, to-wit, Senate Bill 97 by the Forty-rrt8nth 

Legl8latur8, applies to “note0 or other obllgatlon8 taken 

by 0~ on behalf of S t Jn.nklu Qoraorrtlo~ of the State 

of Texas oropted under -sLF ltle lB.* 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 wa8 w to th8 

parecge of Senate Bill 260 (8ntltlrd *PowoF Of Morrlr Plan 

Banka Enlarged') In 1939 

tinoral'8 Oplnlon lo. 

but under the holding of Attorn8y 

O- i 1142 raid Sonat 8111 268 a~dr them 

State Banklng Corporatlonr %pon thelr oomplianor with the 

rot lt88lf, the anrndmrntr thereto, and thr Conrtltutlon.' 

Our an8wer to your fir86 quertlon 18 that not88 l rsl 

other obllgatlonr taken by or on behalf OS prlvPt8 unlnoorporated banking lnetltutlonr~ate not exempt from the tax lerled 

by the Note Stan? Faoording Tax Aot a8 amend8d by'Smate Btll 

97, Forty-reventh L8gi8lbtUr8. 
Honorable aharl8~ Lookhart, pwo 6 

i,,: < Our an8wer to your reoond quertlon $8 that not08 

and other obllgationr taken br or on behalf 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 FIRST ASSISTANT 

ATTOE iNEY GENERAL ,,@A - '- 

cool1 0. Rotloh 

CCRIJ8 A88i8taat 

i