*1 559 OFFICE OFTHE ATTORNEYGENERALOFTEXAS

AUSTIN

y-rabble J. T. kia&Allln - poa;e 2

Your inpuiriea make it nwass~ for us to eon- strue oertain sections 0P the BtildLng k Loan Aasoc*8tiono Aot.

Seotion ua (Article 8(118, Vernon.6 Pexaa St8t- utes) prorid-:

nForeign bulM.ing and loan assooistion8 may do buainesa in this State fn aaoordanoe with the larm of thlc State governing build- kng and loan acleof3f8tionn~ l * *

@SeSeotion 69 make8 the following rsqube- I&nt of a torsign assooietion desiring to do business fn T-rn~

w(3) It ahall deposit rith the Banking Codsslioner ot Texas On8 Bumlmd Thouoard Dollare in aaah or bond8 of the United %tate#, or bouds of ag state of the Urdted States, or bonbs OS any oeuntg or nuniatpal oorpwa- tion In the St&to of Texas, or mortgagee be- ing firet llelxs on fmgPoved and CoaPotlVe rear eetato loeated in thio State and uopth at least ttioe the amount of the lieru, fhiah seaurities ahallbe approVodi.n advaneebf t,bsBaskd.q~ Comhsioner uf Texas. IheBanX- ing Conad~I.on4r oi Texas shall have author- ity to require such rcr6oaiatlona to depodt a&%itlonal seauritiee, and to order a ehaxtge in any Q? the sesuritioo gc,dqmsited at any time. Such deposit ahall be held aa aeeur- ity for all claiine of reeidmts of this Stats against swh foreign arroaiation, and sh811 be liable Ear 811 jud~nts or dearees thsre- on; and said aoauritSea shall not be released until obligations to rosiaents of this State &all have bekm fullr pePfW%sd and disclherged.

+ * 0"

Seation 60 further deolamer "&ll such sscuritios doposited tith.t.he hnk%ng Cadssloner of Texas ahall be ims- *3 i

YonOroblo J. T. bw~lllin - page 3

dirtoly do~dted by them (him) vitb the Gtate Troaourer rho, +ith hie euroties, r&all be rerrponsible for the safokoo

ttmreof . The state treasurer eball 0 wr 8% suoh socuritieo only upon the rrltton ordoP of the SankSag Gozmdsoloner OP Texas.*-'

Artialo 93 of the Penal Code red6 a8 follosot .If the State Tresmurer eball knotin@- 4 koop or missive into ths building, l &~IJ or vault8 oi the treamry, any mm6y or roprseontative thorool' belonging to my in- dLv%dual, oxoepting cueis expres8ly prariddl ior by lau, he shall be eonfined in tbo pord- tontiary not 1431~s than two nor mere than five pear. **

60, aleo, hPtio1e &#4 Ot trio lEtorimed arl1 Btatatos ,pooides that,

*rho Tromiurer eball not keep or mk- O~~va into tlm byildfng, &a* or vault@ of the txeaoury my moneys or the rope- oeatatSve of namey, belonging to Ug ia- divAdual wept in cams expressly ps, rided for by la~,~

It will be aoen tbo deposit Feqwired of mmb roreign buildZmg and loan arrtloe%atton qf 4mzmfah *La Qamh or bond& DC "iir6t IHPt~Of#', @UId thPt'*#W&l de peait shall be hold an remxr%tf ?or all 018irrr of' rsd- dont~a of this State egainot umh fore&p 8oooaation, and s-hall be liable for all pigments Or deWwoo there- 011.'

The deposit (of Mmtsoeter 6zharaoteF.) ia troaiod throughout ,We Aat as secrurity and the OCmiptm- snt part&a of the dopeeit, whetbor of oash, bonds Or mortgages, aa l 6iemritimP. There IS no lnton~on to aegrogete the oaob security from tbo bond anL UWt&~e seourttg in any reqx3ot sllat6werr In other wma0, there fe nothing to 4,mUoat.e that the oath petition of the d&- poolt ohoulc¶ be handled tn an$ different way p?ro~ the *4 I, rq FIRST ASSISTANT ;c; \,: ATTORNEY GENERAL A oornlt

'.' .i