Untitled Texas Attorney General Opinion ( 1943 )

\ OFFICE OF THE ATTORNEY GENERAL OF TEXAS c AUSTiN abova itibjsct *ttar my, but doear not rant ~if by 80 doing it no-dd s.zlkins attItus. ts to jrnoII also 1s a ,pri+rta 6 may be swad Prum ita grsssst aorpwate limi.ts of enot!icr twn.* i? Of ehSpts?T fx Of the TlElr?rlf~ &UikiXin~ .=Od6 of 1942 as p6SS6d at the rsgalar adsalon of the forty-sighth L6glalatarst is as tollwet It all1 ba tleen froia (4) of (2) of Art1018 2 above quoted~thatthe pri+atsbanks exsa>tadfro5 the prohibition to oonduat a banking or tPQ8t bmineas OF to hold out to tha poblio that thy ,are coodnotlng a banking or tmat buainsars, are prltats bank8 wwtua11y sti 1~afwll.g co~d~ctln~ a bmirin~l~u~sinsa~ in the aftwbim dote of this act. khat ~4 shalJ. my hersdtar la therefore upcn ,the asswsgtion that ths particul-s-r prfrste bank as to r&ic:~ yo?i fnqulm is such a priveta ba.?k as YSJ aatuaXly snd latiuily ooaducting a bonitin& business oa ths etraotit6 date of the pmseat Banklog Coda. The wel,lrocognize4fu?&Ians of the badclng burl- ness hsve long been, (I) the ~SSS.S~OF,a!: natas inttendod to circulate es money; (2) the acasptenae of de;-,oaits of mnoy Honorable Jno. q. maem, psfS4 ?r to be paid ~poo tha orPer 0:: ths depoeitor; snd (3) the dis- aozntiag of aosa4rcl3l paper, In late y40s of coar.36 th6 tire* of th8ae funotloas hn3 not ban ersralssd w that the pwef3nt ssrsntlal funotione cd tha banktie: buslnser am the 4eospEzoae of dapcsits oml th Cisa~Juntin6 of peper. The acre lending of mxx.y 33 c;otr-.2istfn````~3d trca disc,rlrt- lhg pqer is not of itself ~811cxolusivs funotlcn of bmking. Th8 oroaiptlou or prfvat4 bonkr frontha proaorlp- tlon of lus as to bclaking is ndt liait4d to those private bank8 that am craga@ tn accepting dapoeltn, OOT y4t to thora privstr banks that are doing a Usposit a nd l disoount burinaaa. 2% appllea seamrally to~.prlnte bank8 *rhlob rare aotually an4 lawfully oaaductiq a banking businesa on the lrraotlts ,date* or the Code. Sow Art1016 lo? Chapter TII ot tha Bmklng Code authoriaa8,~th~ inooqoration or a etate bank “with any ame OT ~oicm of all~'of tIm foll6wia6 gqwerrs in *te) To reo6ira tla8 and Oasmad depoaSfs~at ihtsrest or dthwdt 1nSarsst; ta land acney 4th or nitbout seourity et Intareat; and to buy, awall and dUaotmt boado, ne&otlable lastrumnts and .otlmr``.o~i~anoon of +l~btsdn~sr,.; Iioonorabls &IO. Q. YGBdaaa, POIY 4 7