Report and Opinions of the Attorney General of the Commonwealth of Kentucky for the Years (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1909 Excerpt: ... other than that expressly authorized by its Articles of Incorporation or amendments thereto; nor shall any corporation directly or indirectly engage in or carry on in any way the business of banking or insurance of any kind, unless it has become organized under the laws relating to banking and insurance." An examination of the Articles of Incorporation of banks of this State which are operating Branch Banks, shows that it is not expressly provided in their respective Charters that they may operate Branch Banks. In the case of Bank vs. Tate, 122 S. C. 313, it was held that a bank could not operate a branch, it not being so provided in its Charter. But under the provision of Section 192 of our Constitution, can a bank by expressing it in its Charter gain the right to operate a Branch Bank? There is nothing whatever in the laws relative to banking institutions which would lead me to believe that it was intended by the lawmakers that banks should or could operate through Branch Banks. It may be admitted that if they are authorized by the law to operate through branches, there is no limit, and an incorporated bank may have one branch, or it may have one hundred branches. It may have one branch in its home county, or it may have ten; it may establish its branch or branches in its home county, or it may diffuse them throughout the entire State, without regard to county lines. REASONS CONTRA. (a) There is nothing in the general incorporation law or the law relative to banking concerns which authorizes it, either in express terms, or impliedly. (b) It is against public policy. The first provision of the laws relative to banks and banking, under the general title of "corporations," which in Section 577 Ky. Statutes, provides substantially that the cap...