Texas Attorney General Opinion: O-2691 Page: 1 of 2
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GERALD C. MANN Ak TIK 1 . T rAs
Honorable Lee Brady, Commissioner
State Department of Banking
Austin, Texas
Dear Mr. Brady: Opinion No, 0 2691
Res Corporate power of Del Rio
Bank and Trust Ccmpany to
acquire certain property
as a banking house.
'We have your request of August 3Dth, 1940, asking for an opinion of
this department with respect to the corporate power of the Del Rio Bank and
Trust Company of Del Rio, Texas to acquire certain property as a banking
house.
Article 512 of the Revised Civil Statutes pertinent to your inquiry
is as followss
"No State bank or bank and trust company shall invest more than fifty
per cent of the capital stock and permanent surplus in its banking house,
nor more than fifteen per cent of its capital stock and permanent sur-=
plus in the furniture and fixtures to be used in its said banking house,
unless said corporation shall have first applied to the State Banking
Board and received written permission to make a larger investment than
is allowed hereunder, which written permission shall be entered upon the
minutes of a regular meeting of said banking corporation."
It will be seen the only limitation of the statute upon the amount
to be invested by a State bank in its banking house shall not be"more than
fifty per cent of its capital stock and permanent surplus" of the bank. We
understand from yo r letter that the proposed purchase does not exceed this
amount.
Of course a bank may not speculate in real estate. It is no part
of its corporate purpose. It may acquire directly such real estate as may
be reasonably necessary in conducting its banking affairs, but no more.
It may acquire real estate, however, not at all necessary in the transao-
tion of its business, when such acquisition is made in the process of col-
lecting debts due to it or in other words When such acquisition is inciden-
tal merely to a transaction of its major corporate business -- that of
banking. (See Artioel 415, Revised Civil Statutes.)
Such an institution, however, is expressly, or at least by necessary
implication, authorized to acquire real estate for its banking house purposes.
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Texas. Attorney-General's Office. Texas Attorney General Opinion: O-2691, text, August 30, 1940; (https://texashistory.unt.edu/ark:/67531/metapth259909/m1/1/: accessed July 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.