Untitled Texas Attorney General Opinion ( 1940 )

587 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN -C.MAIIw - .Ql- Honorable Lee Grady, Co.tisaioner, Bqm-tment of Banking Auetin, Texas Dear Air. Brady: Plan Bank sharer eipt of your lettar oi galopinionthe rollm- hat chapter, EUbeeqwnt- owers proviAeA ior UAsr t:mr.iarter' applied ~to the or it8 deposita purrrsuant to the the United Water. *In aonneotion with that applioation It Aeveloped that xiore than a majority Or tim stockof thin bank ie awnd by &A-Con- tinent Banoahares, Inc. a foreign oargora- tlon, whloh corporation haa no permit to do bueineas in this State. This tact having corn to light, the FDIC ha@ requested that I subpit t0 YOU the rOibWbU$ pU88tiOn0: 588 lionorable Lee 3rady - i%ge 2 “1. Is Mid-Continent Banceharee, Inc., a foreign aorporation, lawfully doing busl- l~eae in thie State? w2. Are XiA-Contlnent Banceharee, Ina.., anA the San Antonio Xorrie Plan Bank, or either or both of t&m, exeroielng banking privileges in violation of Seotion 16, Artlole 16, of the Texas, Constftution, or in violation of any other law or th it3 State? “‘In the light or the above raote, ir the San Antonio Sorrle Plan Bank lawfully entltlod to exercise the prlvile~es ae provideA ror un- der Chapter 9 of t$e Benking Act as amended by S. B. No. 2681” The queatlons presented by you are the e-0 as thoee ntatsd in your requeet for an opinion or date June 26, 1940, and which we anewered in our Opinion No. O-2484. We th4rf?rOTe answer as we AlA in that 0880, to- Nltr 1. We express no opinion am to whethrr or not the I&Id-Continent Banoehares, Inc. Is lawfully Aoillg butal- neae in the State of Texae. We do hold, however, that it8 rotlvltioe, as Aiaoloeed by you, Ao not arreot the atatua or rights of the mrria Plan Bank aa a Texas oor- poratlon to carry on ita corporate purpooee and arrairs. 2. Thla qusetlon ehould be anewored in tlm negative a8 to both institutions -- the Mid-Continent Banohhares, Ino., and the :&crls Plan Bank. In thie oonneotion it Is perthant to cay the inoorporatlon of the 2dorria Plan Bank should not be aonaldoreb a eubter- huge or soheme ror tie oarrying on or the WA-Continent BanoUaree, Inc. buslnees, ror the bueineee or the two oorporat i ona -- that is, the corporate purpoee -- is not the bane. The corporate buslueee or the .Aorrie Plan Bank IS that of a banking corporation* NheSFeae, the cor- porate business or the Xid-Contillent finsofar as perti- nent here) le that of a holding corporation. 589 Honorable Lee BraAy - Pa@ S opinion Our reamns are fully referred writ forth lntb to, a copy Or whioh we hand you herewith. Very truly your6 APPBOVHD JUL 16, 1940 /al/ Grover sellme FIRST ASSISTAN'i' ATT- GENESAL *’AP?ROvsD OPIHIOI co@dxTTm By /a/ 8. W. E. chalrlosn