Alabama Constitution Section 247 Authority of legislature restricted
Alabama Constitution – Section 247: Authority of Legislature Restricted
Text of Section 247:
"The legislature shall not have power to establish or incorporate any bank or banking company, or to pass any law for the benefit of any bank or banking company now existing under the laws of this state, or any other state or country, unless such bank or banking company shall accept and comply with all the provisions of this article."
Explanation:
This section limits the power of the Alabama Legislature in regard to banks and banking companies. Here's what it does:
❌ What the Legislature Cannot Do:
It cannot establish or incorporate new banks or banking companies directly.
It cannot pass laws benefiting any bank (existing or new) unless the bank agrees to and follows all provisions laid out in the banking article of the Constitution (Article XIII).
✅ Exception:
A bank may receive benefits or recognition by the legislature only if it accepts and complies with all constitutional rules that apply to banking (likely referring to consumer protections, regulations, or corporate rules in the Constitution).
Purpose of Section 247:
To prevent the legislature from showing favoritism or creating special laws that help particular banks.
To standardize banking rules across all institutions operating in the state.
To ensure constitutional compliance in the banking sector.
RELATED Blog
0 comments