Could a circuit judge own stock in a local bank?
Apply this to your situation
This page answers the general question as of 1976. Ask about yours and see what the current rules of professional conduct in your state say for your facts, with citations.
Plain-English summary
The Commission answered four questions in one letter. For Opinion 76-7, it addressed owning stock in a local bank.
The Commission answered this question affirmatively, subject to qualifications under Canon 3-C(i). It said the judge should disqualify in proceedings involving the bank or its holding company, or follow the procedure it referenced under Canon 3-C. The letter does not describe the steps of that procedure.
Currency note
This opinion was issued in 1976, after the Alabama Supreme Court’s 1975 adoption of the Alabama Canons of Judicial Ethics. Subsequent amendments or later opinions may have changed the analysis. Treat this page as historical context and verify the current Canons and linked opinion before relying on its conclusions.
Common questions
Q: What did the Commission permit?
A: Owning stock in a local bank, subject to its stated qualifications.
Q: When did the Commission say the judge should disqualify?
A: In a proceeding involving the bank, its holding company, or another entity addressed in the grouped opinion, unless the judge followed the procedure the Commission referenced under Canon 3-C.
Q: Did the opinion explain the alternative Canon 3-C procedure?
A: No. The letter refers to that procedure without setting out its steps.
Background and rules framework
The shared PDF labels the first three answers 76-7 through 76-9 and gives one collective affirmative response under Canon 3-C(i). Its summary lists local-bank stock, holding-company stock, and bank directorship in that order. This page addresses the 76-7 question in that sequence.
Citations and references
Alabama Canons of Judicial Ethics:
- Canon 3-C(i)
- Canon 3-C
See also
- AL Judicial Ethics Op. 76-8: Bank Holding Company Stock
- AL Judicial Ethics Op. 76-9: Bank Directorship
Source
- Landing page: Alabama JIC advisory opinions
- Original PDF: Advisory Opinions 76-7 through 76-10
- Canon history: Alabama JIC, Canons of Judicial Ethics
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
76-7
76-8
76-9
76-10
Judicial Inquiry Commission
800 SOUTH MCDONOUGH STREET
SUITE 201
MONTGOMERY, ALABAMA 36104
July 12, 1976
Reference is made to your letter of June 4, 1976, to the Judicial Inquiry Commission requesting an opinion in respect to four (4) questions. 76-7 through 76-9 Our interpretation of the Judicial Canon of Ethics is in the affirmative as to the first three questions, subject to the qualifications under Canon 3-C(i). In summary, our opinion is that you may own stock in a local bank; that you may own stock in the holding company which owns the local bank; and that you may be a director in a bank, provided that you disqualify yourself in a proceeding involving any or all of these entities or follow the procedure outlined in 3-C. 76-10 The opinion of the Commission is in the negative as to question 4. The Commission is of the opinion that it would be contrary to the Canons of Judicial Ethics for a Circuit Judge to participate as an organizer to obtain a charter from the State, approval from the Federal Reserve Board, and to participate in the issuance and sale of stock.
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