Montana Attorney General Opinion 15-524

Opinion No. 524 Building and Loan Associations-In- vestments-Home Ownel's' Loan Bonds. HELD: Section 12, Chapter 57, Laws of HJ27, is a definite limitation and provides that not exceeding ten per cent of the assets of a building and loan association may be invested in "such other bonds and securities as may be approved by the Superintendent of Banks." Chapter 5, Laws of the Extraordinary Session, 1933, does not remove such limitation but merely declares the con- fidence and approval of the Legisla- ture in bonds of ·the Home Owners' Loan Corporation and authorizes in- vestment therein by the persons, asso- ciations and corporations named. May 2, 1934. You have requested my opinion whether a building and loan associa- tion may invest in bonds of the Home Owners Loan Corporation in excess ten per centum (10%) of the associa- tion's assets. Section 12 of Chapter 57, Laws of 1927, provides: "EYery huilding and loan association • • • has power: (15) To invest the money of the association in: (c) Not to exceed ten percent (10%) of the association assets in such other bonds and securities as may be appro,-ed by -the superintendent of banks." This section constitutes a defi- nite limitation on the amount of the assets of an association which may be loaned on other bonds and securities. Chapter 5, Section 1. Laws of the Extraordinary Session. 1933-1934, pro- Yides: "Notwithstanding any other pro,i- sion of law, it shall be lawful for an~' insurance company, building and loan association, or for any bank, trust company or other financial institution operating under the laws of this state, or for an~' executor, administrator. guardian or conservator, trustee or other fiduciary to invest their funds or the moneys in their custody or pos- l<es;;ion eligible for investment, in the honds of the 'Home Owners' Loan Corpora tion'." It is my opinion that the intent aIHI purpose of the last named section was to declare the confidence amI approval of the Legislature in bonds of the Home Owners' 'Loan Corporation and to au- thorize the persons, associations and corporations named therein to invest in such bonds. The object of this sec- tion. in my opinion, was not to remove the limitation as to the amount of the assets of the association which may be in'-ested in such honds, hut merely to declare that such bonds are proper for investment purposes within the ten percent (10%) limit. The two Acts are not contradictory or repugnant. They cover different subject matters and may he llarmonized. The later Act, therefore, does not, by implica- tion, repeal the former. For authori- ties, see: State v. Bowker. 63 Mont. 1, 205 Pac. 961; 59 C .. T. 909, sections 511, 513. et seq.