Case Information
*1 *;- -. . 323 OFFICE OF THE ArCORNEY GENERAL OF TEXAS
AUSTIN
Boaorrblr Qmrlr~ tsokhart TreaMrer
Mate
Aurtln, Toraa
quert for an opleloa, County Clerk inion a8 0 1 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 aooord- anoa 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 pay- ment af tha tax . . . ah611 be avId6noad br afflrlng Iaaued bf the State through ths Btate Treaaurar and atampa the County Clarka* a6 pr6aorIbad In the atetuta.
Senate Bill 97, paaaea bj the Forty-aavanth LagIr- lature eh8ngaa the taxing l eotlon of the 14w, to-wit, pan- graph 1.1, by aaaleg lasguag6, aa iollwar
I nor ahall thI8 aectfoa apply to Inatru- obligation8 aanta,'n& or other t&an br or de be- &lf of Uatloeal Bum Aaroalatlona org*aIcwd ueaer the law6 ot the UnIt.ed 3 tator, nor notee lnatluaenta, token by or on bahalf of State or obllgatloer Bankln Corporation6 the State oi Taxaa errateb under t itle 16 of the Revlard Civil Statutaa of Taxae, a . . rfll ba notloed the only *State B6nkIng Cor- that porattona’ exeapted bald L&mate Bill 97 6ra thoaa oruata& under Title 16 the RevIeea Civil Statutea of Texaa.“‘~Ae xam;aatIon of aald Title 16 diaeloaea that the only refer- ease 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 Ia hemby daolarad to be the publio *It
polloy o? thir .Stata no addItIon61 wItate, . banking InrtltutIon or buainaas h6ll b6 orgae-
Ired or a6tabllahrd, it ah811 b6 ual6tiul say paraoa, aaaooIatIon oi par6on6, prrtnar- ahipa truateea aotinq under any oommoe lav deolaratloe orgaelre or to hareartar of truat atablIah, begin raaume thr operatlon~oi any te:“g in6titutIon or bu6lneaa xlthln thle It ahall the duty o? private ledIvI&- uala ir ?Iraa engaging In banking buaInaea the e6me under whIoh the buaIneea use after tha word In paranthaaea la oontluotod, ‘whoor- poreted’, nnd fstlura do 80 ahall aubjeot *3 Fionorabla Oharlay Loekhmt, pago S
tha ottaadar to a penelty of one hundrad dol- lars to be aollaated ia the maeeer provItl8d
la Art1010 491.’ We l a auma that the private baeklng InatItutIan to vbloh you ;;f;;2Ta l atabllehed bafora ab¶ Artlale 841 rant into etie4t
TM18 16 provIdaa the lnoorporatioe varlooe ktnaa o? banklng InatItutIona , areatea the o??Iaa o? Banking a? Taua an4 giver ald 0r?ioar oertaln powers, CouIaaIonar and regulates the oparatloe o? bank6 In general.
Your letter ahowa that the private banking ;natItutIon you ark about la onIeaorporated. balng unlnoorporated, ve era unable sea how lt oould ‘orrated ue&ar Title 16." Tharafora xeeptlon areatad by 6aiQ Benate Bill 97 door apply to ft.
WI vi11 now take up four quaatIoa. &apt&r 16 o? the lW~*ed 9 ~ArtIolaa 642 to 849 Iaolua~va) Iltla Civil Statutra of Taxaa wee emoted by the Thirty-•lxth Lag- Ialatura 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 name is not urea In the body o? the thnt atatota, but is used In the herding of bald Chapter 9 It (ArtIolaa 842 to 642 inaluaiva) In the raoodlfioatioa of the Revised Civil Pltatutea of Texas aQaptad the Thirty-ninth We l a auu r ott have rafarmoe to LegIalature in 1995.
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, nU during tlma Artiole 546 in raid ohnpter grant4 power6 oorporatlona organlxed thera- in language 86 rollowe: under
*her loan and Invaatnant ooapany, $a add:- tlon to the pokers oonfamd upon oorgorat~oaa >r thr general oarporatloe law, ahall have the iollow- lng powera t
‘1. To lend aone? aeauot Ieteraat there- ?or In aavaeoa at a rate not to exoead mix per oant per *4 Roaombla Qmrlev Lookhart, page 4
annum, and In addition require and noeIva
uniform weekly or monthly inrtallmante on Its oertI?Icataa of Indebtednaae purohaaad by the borrower aImultaneoualy with the raid loan trana- 8otIon, or othrmIse, ana QledgBa with the oorp- oration am aaourlty the said loan, with or without an allawnnoe of Intareat on auoh inatal&- maata. To mall or negotiate bonda, notea, oartl-
l 2. ?loatea OP Inveatmenb and ahoaea In motion for payment of money at the time, l lthar flxeb or un- oartaln, and to reoelva paymenta thara?or In ln- atallmaata or otherwise, with or without an allom- l noe of ~nteraat upon auoh Ieatallmenta.
‘S. To aharga tar a loan madr pursuant thla artIala one dollar far eaoh ftfty dollara or loaned, for axpen8aa, Ieoluding fraotlon thereof my exaaInatIon or InveatIgatIon a? oharrotar and alroumatanoea a? the borrower, oo-maker or ufaty, and the drawing and taking aaknovladpent naoeaaar papers or axpenraa inourred In the I our; no oharge hnll be aolleoted un- raking leaa a lean ahall have bean made a6 a reault of uoh xaaleatIon or Inv~atIgat~on.*
Sn the oaae of Kaliakl v. Qaarett, 109 8.Y. (2d) 640, (Writ error ratuaab) daoldrd by the Oourt Civil Appeals at 9m Antonio In 1937, warn hqlc? oorporationa orgae- Ired and operating under raid Chapter 9 of TItla 16, to-wit, Xorrie Plan banks are oorporatlona *with tinking and That bslng true, they are not Btete diaoounting prlvIlegaa.’ Banking CorporatIone.
In 1939, 6enate 3111 266 entItlad l Povera of WorrIa PIan Banka Enlar ad,* the LegIalatura ohurged para- graph 2 of Artlole 546 f! above quoted) raad se tollowar
‘2. To reeelva money on time drpoalta, and to purohaae, mall, dIaoount, negotiate bonda, notea, oarti?~oetaa of iavartment and oho8aa In for the payment of money at a time either aotion fix- ed or unoertain, to receive peymanta therefor In ~nat~llmenta or otharwtra, with or without an allou- To purchaaa anoa of Intareat upon auoh lnrtallaenta.
atook In Federal DaDoeIt Inauranoe Corporation. Am amended Aota 1939, 46th Lag., p. 72, 6eo. l.* *5 . ’
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, provld- l d however, that lnooroorE~tlon of oorpora- tlonr In the future under thlr ohapter rhall
n&e appllontlon to the State Banklng Board 8n4 governed by the prorlrlonr Chapter 2 oi thlr title. Added Aote 1939, 46th Leg., p. 72, Sea; 2.*
i)n November 7, 1939, thtr department held in At- torney 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 Conrtl- tutlon, upon their oempllnnoe with the requlrementr of th8 a06 ltcreli, the amendment8 thereto, and thr oon8titution.a YO 8till adhere to ODInion end the Fbn8on8 glren there- ln, and w8 are 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 “note0 or other obllgatlon8 taken by 0~ on behalf of S t Jn.nklu Qoraorrtlo~ State of Texas oropted under ltle lB.* Are Mom18 Pl8n bank8 -sLF
‘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 but under the holding of Attorn8y tinoral'8 Oplnlon lo. 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 your fir86 quertlon 18 not88 rsl other obllgatlonr taken by on behalf OS prlvPt8 unlnoorpor- ated banking lnetltutlonr~ate 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 Our an8wer your reoond quertlon $8 that not08 i,,: < and other obllgationr taken br or on behalf of Rorrlr P&an Bnakr (Ire 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 uah aote8 obligatlonr are exoaspt if raid lnrtltutlon wa8 ln- oarporated rlnce ffcctlve date of raid 0enate Blll 266 in 1939, ha8 atlopted ln the manner prerorlbed the rtat- ute the eddltlonal poverr granted by raid Senate 2111 260.
‘“~hm-/~ I FIRST ASSISTANT ,,@A '- - ATTOE iNEY GENERAL cool1 0. Rotloh A88i8taat
CCRIJ8 i