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OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN
GROVER SEUERS
A-E-f GWERRIL
Honorable L. 3. Johnson at30mhhwmr, Department or BEiaklng
Au8tln. Tome
Dear sir: Ret Construotion
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Hon. L. S. Jotmson, page a "1. Ths seaurlty 1s a first lien upon s&oh real estate or the loan or fnrestmsnt nmdo by th8 bank Is wholly guaranteed by the Administrator of Veteran8 ArreIrtJ unaar Title III of the ZJenios- smn's Readjostmeat Aot of 1944, se amended from time to time.
"2. Ths total (net balsnos* owine upon the tndsbtsdnsss seo~red by suoh lien (a) dose not exoeed fizty per oent (!5Wi) of the epprelesd value or suoh rssl sstatq or (b) does not exosed slrty : per oent (6oib) of tha appraisal value of ruoh red.
e&ate enU mush loan or bbllgatlon pxwldqa for uniform monthly, pua~rts'rry, abmi~wal., or annual reduotloa~ of prinolpal ~fn auoh amounta aa to mtlre Sokty pm oant (40$) thardf within flW(ti) yearn.’ taxes aoreered against the badurif;y. The ag regat* of loan and lmm&ments of the 02$00 pzovlde ii rar in thla Submeatlon (a) Of Swtlciri%, made'by #my Stafo Bank ahsllnwer, nlthout the~~wrlttin~~neezW : of the Commlseloner exabed ths oirtifleti surplop uul o&pita1 af suah bank.
"The term *rsslCsntlel -al eatstsf PB us&in this subrmtlon (0) of Seation e, shall mesa land on whioh la situated a diwelling of not more than feur (4) iamily units., the p&Wary we af~whioh ifi ~ossu- I ~. panoy a8 6 home.
"The term *net balance' 6s use4 in this.Seotion 2 shall man balanoa obtaiaed atfir deduotlng tmm any loan or obll. tlon portion thiireof guaranteed by the Add?’ n%strator of.Vaterans Aif'alrm under Title III of the Servrioemsn!s l&ed$Mtmenk Aoti 1944, aa amnffad rrom tliw to time.* *3 Fim. L. 5. ii&&n; page 5.
Art1010 11, Of Ohapt4rV, 14 ae f4ll0m: "Any pro&lOn of thi4 Code to the oontrery notwlth&andlng, any state beak may make any loan or ln~8tiuant whloh suoh bank could make were it opantlng a8 a natiaml bank, and the amking of 4aeh loan ox lnrartnmnt shdl not oonstitute a‘ vloletlon any penal pmrlelon of the btetutee of the State.'
Statq~BanlP, la Texas have only tha &&wars oonfarre& ' upon the4 by t&a '#tatate of.the.State.anA the ohartere ua#ar rrhioh they ao& an4 hcvo no.powea beyond thle from any other @wammatit @r~ 8oaroa.. 'The Ooda ia a eomprahanelta one and oovarn the wh@la flald.of tha o&axutlon of 8-h banks, ‘It lw Smlllar lew in et~tutory aoMfrmMoa that auoh a ooda 8himle be aoMtsuad in ifr.antl~y, 48 4 whola~.glving aitaot to arasy portion tRamat: a8 6.h 'lmtagta& part O? the law aotamlng tRa %rtnmt~ pmrtiralq il%& T ; ~:~lOlt, :4 woa4I. ii-etelmnig e&me‘ e%ola&e pexmitbat by.irtlele llc But it the ahasaot~r 'of do08 not et&inl.,ala~&a';. oh 'fha'oonti'ery, artlola Xl .%m ae muah a
i., ;&: 2;im. : . . ,I' -;;. *llui reaion for *he lnolu8lon of A*lale~~l1, if one It~aarv~ the whole#ome.got-' tlla~ridnatlon between mational
the latter*8 hurt.
'scrah aiudt~.~r'reao~ned.'b~ the aoztgmm~ a&ably in. deaying naklhal l ssoelatlon the rl&ht to malnldn braaeh be&s in tlmse atatW who88 lawa forbid brulah banking. ~8 tsaib by Kr. Loeohman; Attorney for a~ taterested,bank, a oopy Q? who40 oplnl~~'hci464lp4niao ymlr requo4tt
*It wan 0164rly lntsntlon of the L4glfbl4tUXV to allow Sate banks egu41 opportnulty wlth~atian4l.
banke making of loam qnd lnrestm4ntti by pm- tiding ln Artfole SIB-511 that notwlthsi~azn3lng any oontrary prooislonr of the c0a0;e state bank map make any loena or ltiveatments whloh aa&3 bank qotid make ware it operating as 8~ national bank.*
Hon. L. ,s; Johluon, page 4 .. But we all(b6e8t,'hDwwerr t&la ham nOthi& to do with question of the loanlimlt of the .$dlvlduel bank oonoemed. Rs are hot0 ilonllng with the quality, - eli~lblllty of invest- ments, and not rith the puantltatlre feature a8 preaoribed hby Artlole I of Chapter A OS the Code. Se said, in Opinion Ho.
0-6609, addmdraed to Yr. Jamleon, Banklw Comal8sioner, un&?r date of saptember 18, 10Csr
"It foll&w, we think, that under the code a State bank mny lawfully invest in thase obligations ot another State, or its p~litloal sub6lridons, in rbloh a national bank domlolled thlm State 1Ji authorized to invest; but that the 1mn 1Mt of Teur WOUU at111 apply a6 fo.saoh out-of-date ' ' lnvedaerita, a8 well a to %¶io.ae in the.Statt.*
Wg trust thit. rhatwe' h&e &id suiticiqntlr answw15 your lnqtlldes.
Approved Feb.87, amvw 883lsla . of Texan AppnAsdi ‘apiaion
AttOrney Oeobral aoarmittee OS 1 rt;djm BY .&!L.L...
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