Texas Attorney General Opinion: V-419 Page: 2 of 3
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Hon. Paul H. Brown, Page 2, Reconsideration of V-419
forfeit its charter, or if a foreign corporation, its permit
to do business within this State . . ." (Emphasis ours).
It is manifest from a reading of the foregoing statute that
from the time of the passage of this Act in 1905 no domestic
corporation other than State banking corporations and national
banks could be granted a charter in Texas if the corporate
name contained any of the forbidden words named in the statute.
However, it was possible for any foreign corporation, which
was authorized by its charter provisions to use such prohibited
name or part thereof, which had theretofore obtained a permit
to do business in Texas or which might thereafter obtain such
a permit to use the prohibited words as a part of its
corporate name, provided that such name was followed by words
"without banking privileges."
Although this article was a part of the general provisions of
Title 16, Revised Civil Statutes of 1925, which dealt generally
with the subject of banks and banking, nevertheless, it was a
general statute affecting all corporations. Under the pro-
v isions of this law, permits were granted to foreign corpora-
tions which contained the forbidden words in their corporate
names; and it is presumed that the terms of Art. 491 relating
to the use of the words "without banking privileges" were
complied with by such corporations.
However, 1943, when the Forty-elght Legislature enacted the
Texas Banking Code of 1943, it specifically repealed Art. 491,
Revised Civil Statutes of Texas, 1925, by the terms of Article
342-911, V.A.C.S., and enacted in lieu thereof Art. 342-902,
V.A.C.S., quoted in Opinion No. V-419. Here there was a
specific repeal of the only legislative authority for the use
of the forbidden words in the corporate names of foreign cor-
porations obtaining a permit in this State, and no such
authority then existed for the granting of such permit. In
fact it was specifically forbidden by the provisions of Article
342-902 above referred to.
That this was the intention of the Legislature was further
evidenced by that part of Art. 342-902 which states as follows:
"This article shall not bar an individual from acting
in any fiduciary capacity, if he ~oes not hold out to
the public that he is conducting any branch of the trust
business." (Emphasis ours)
While it is true that there are many decisions to the effect
that the word "individual" shall be construed to include the
word "corporation" where the context clearly so indicates,
nevertheless, such inclusion is not apparent when Art. 342-902
is read as a whole.
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Texas. Attorney-General's Office. Texas Attorney General Opinion: V-419, text, March 9, 1948; (https://texashistory.unt.edu/ark:/67531/metapth265238/m1/2/: accessed April 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting UNT Libraries Government Documents Department.