You request our opinion with respect to the matters mentioned in your letter ae follows:

"An opinion from your office is requested concerning the authority of national banks in establishing banking facilities in military camps and naval yards, alleged to have been provided by Section 10 of Public' Law 603 of the 77th Congress; also whether State chartered Federal Beeeme Member banka and those non-member insured State banke are given equal authority under this statute with those oper- ating under national charter."

In opinion No. O-5451under date of July 26, 1943, we advised you with respect to the above cited subject matter aeeumlng that S 1603 (U.S.C. Title 12, section 36) had been duly enacted, but which now appears to be not the caee. In truth S 1.603 was defeated in the Congrese.

Section 265, Title 12, U.S.C. Annotated, which Is the Act referred to In your present inquiry and which wae paeeed June 11, 1942, la aa follows:

"All insured banks designated for that purpose by the Secretary of the Treaeury shall be depositaries of public money of the United Statee (inaluding, without being limited to, revenuee and funds of the United States, and any funds the deposit of which ie subject to the control or regulntion of tie United States or any of 1t.a offioere, agents, or employees, and Poetal Savings funds), and the Secretary is *2 Honorable John Cl. l&Adams, Page 2 (O-5451-A)

hereby authorized to deposit pub110 money in su+dapbsitar$ee, under euoh regulatione as may be preeoribed by tie Sdoretary;' and they may also be employed (LB finanoialagente of the Government; and they shall perform all euoh reaeonable dutiee, a6 depoeltarlee of publio money and finanoialageti$e of the ,Ooverment ae may be required of them. The Secretary of the Treasury shall require of the insured banke thus deeig- nated satiefaotory security by the depoeit of Udited States bonde or otherwise, for the safekeeping and prompt payment of public yney deposited with than and for the falthfil perfonuanoe of their duties as finanoial agente of the Coveroment: provided, That no such security shall be required for the safekeeping and prompt payment of euoh parte of the depoalte of the publio nioney in such banke as are insured depoaita and eaoh offiaer, employee, or agent of the United States having offloialcuetady of public funds and lawfully depositing the seme in ah insured bank shall, for the purpose of determining the amount of the ineured deposits, be deemed a depositor in such ouetodial oapaolty separate and dietimt from any other offioer, employee, or agent of the United States having official custody of publio funds and lawfully depositing the eame in the came ineured bank in ouatodlal capacity. Wotwlthetanding any other provision of law, no department;,board, agency, instrunentality, officer, employee, or agent of the United States ahall leeue or permit to continue in effect any regulations, rulings, or lnetxuctione, or enter into or approve any dontracts or perform any other aote having to do with the deposit, diebureement, or expendl- ture of public funds, or the deposit, ouetody, or advance of funds subject to the control of the United Statee ae,truetee or otherwiee which ehalldiecrlmlnate again&, or prefer national banking associations, State banks membere of the Federal Reserve System, or insured banke not members of the Federal Reseme System, by olaee, or which shall require those enjoying the benefits, directly or indlreotly, of dlebureed pub110 funds 80 to discriminate. All Aote or parts tier&of in conflict herewith are hereby repealed. The terms 'lneured hank' and 'insured deposit' ae used in this section ehall be oonetrued according to the defiultione of euoh terme in eeotion 264 of thie title." your questions in their Inverse order.

We-wlll~anewer 1. The Act of Congress does not purport to odnfer eny cor- porate power upon the State chartered inatltutlone, nor indeed oould it do 80, for that would'be beyond the Conetitutiotil power of the United States ae one not delegated by the States to the United States, under Article 10, of the Constitution of the United States.

- .

Honorable John Q. HoAdams, Page 3 (O-5451-A)

Seotion 265 has for its purpose the regulation of depooidarics of the public. money. The proviso contained therein that the regulations stipulated shall not "discriminate against or prefer national banking associations, State banks members of the FederalReserve System, by class, or which shall require those enjoying the benefits, directly or indirectly of disbursed public funds so to discriminate," could not by any reasonable construction be held to enlarge the corporate powers of State chartered banking institutions.

Section 16, Article XVI of the State Constitution contains the following paragraph:

"* * * l No such corporate body shall be chartered until all of the authorized capital stock has been subscribed and paid for in full in cash. Such body corporate shall not be authorized to engage in business at more than one place which shall be designated in its charter. * * * * * Frrxa this it follows~that no State chart&M banking institution may have a branch bank, or exeroise the banking privileges through facili- ties for banking at any place other than the one named in its charter.

2. Welther does Section 265 of Title 12 purport to authorize national associations to establish branch banks at any place other than the place of its authorized domicile. It does not deal with such sub- ject at all.

Whether or nor a national association would be violating any law of the United States or of the State in establishing a branch bank in this State is a question for the consideration of the law enforcement authori- ties of the State, and requires no answer in this opinion. Yours very truly

APPROVED OOT 14, 1943 Id Grover Sellers A!PJ!CRIiRYGRNERALOFTEIAS F?RSTASSISl%WTATI0PRRYGEIiRRAL By /s/ Ocie Speer

Ocie Speer APPROVER OPJNIOR Assistant COMMITThT BY B.W.B. CHAIRMAR

OS%ff-dS