Texas Attorney General Opinion: O-5368 Page: 3 of 6
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856
onorable Johln Q. LcAdams - page s
The ordinary essential Veaturoa of theo banlnm
business are, the poor to accept deposits of none re-
payable Lo the order of the depositor, the discounting
of commercial paper, and the governmental authority to
issue circulating notes, which last-naxt power, as above
stat , has boon3 abrogated.
Any ban^ zay, of course, perform other busines-
transactions, ;andi even carry on to a degree other busi-
nesses, not essentially banking functions, when reasonably
necessary as an incidental power to perfor their essen-
tial functions as banking institutions.
The general rule is stated in 9 C*J.S., Title
BARKS A D BAfING, p. 31, 8ec. 3, as follows:
%As las been indicated in Section 1,
the principal attributesto the bankr are
the right to issue ne!fotiabLe notes, to
discount notes, nnd to receive deposits;
and while as a matter of modern practice
banks usually exorcise any two or even
all three of these functions, it is not
necessary that tbey exercise them all,
but an institution exercising any one or
more of these functions is a bank in the
strictest couwercial sense.'0
Later in the same section that text declare
3Originally, the business of banking
consisted only of receiving deposits for
safe keeping, and even at the present time
a bank is primarily a place for the deposit
of joney, and the receiving of the money of
others on deposit is a distinctive feature
of the business of banking ,
Zollman on banks and BankLng, Vol. 1, Sec. 67,
declares
T'h very business of the bank is to
have a place where deposits are received
and pai4. (ut and here roney is loano8 on
security. Not all these function, however,
need be exercised in order to constitute aninstitution a bank. The exercise of a single
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Texas. Attorney-General's Office. Texas Attorney General Opinion: O-5368, text, 1943; (https://texashistory.unt.edu/ark:/67531/metapth262639/m1/3/?q=+date%3A1941-1945: accessed July 16, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.