Untitled Texas Attorney General Opinion ( 1946 )

I 688 OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN GROVERSELLERS AI-W~)NIY GINEIIAL Honorable Alrrad Y. Olydr Dlstrlot Attorney Fort Worth, Texas Dear Sir; Opinion No. O-n52 Rer Right of rorrlgn corporation, the mjOrlty of the Capital 1% are In racslp requesting our opinion on States and Texas corpora- or a number of srpratatlon o? Title 5 utss of Texas as applied s ws undsrstand It, Article Title 5 does not apply to parcels of land owned by aliens In any Incorporated city. We will appreciate very much If you will review the mattar In tis light of these facts and 689 itinorsble dlrred 4 Clyde, Page 2 confilm that if the prospectltr purchaser aoqulrss oontrol of the Texas oorporatlon, as aroresald, then in your opinion, the real estate in the incorporated city Is not subjeot to ?oreolorure or reoheat,* Thle department in Oplulon No. 0.3911, oopy of wbloh la herewith enclosed, has Interpreted Artlolr 167, Vernon’s Annotated Civil Statater that lots or parcels 0r land owned by allehs in any Incorporated town or olty was an sxorptlon to the prohibition oontained in Artlola 166, V.A. C.S., wherein alieua are prohibited ?ran owing land In Texas. The law relative to the mattrr In question Is contained in Title 5, V.A.C.S. (S.B. No. 142, Ch. 134, 37th Leg. R.S. p. 261). J.neatnuch as the oourtr have not passed upon the question, It Is neoraaary to arrive at the leglslatlve Intent by construing the language used In the whole act. For that resson we are quotlhg same ln full. : “Seotlon 1. That Title 3 o? the Revised civil Statutes or the Stete of Tsxaa, 1911,and all amendments thereto be amended so as to hereaiter read as follows: *Artiole 15. No alien or person who la not a oltlzen of the IInlted States shall (Lo- quim title to or own any lands in the State or Texas, ot acquire any leasehold or other interest in such lands, except as herslnarter provided; but he shall have and rajoy in the Stats of Texas such rights as to personal property as are or shall be ecoorded to oltlzans o? the United States by the laws o? the natlon to which suoh alien shall belong, or by the treaties of such notlon with the Enlted States, except as the aarm may be affected by the pro- vlslonu of this title and the Gez.eral Laws of the State. “Article 16. ‘This title shall not apply to any land uow owned In this state by elIenS, 650 Ilonorable .\lfrad Y. Clyde, Faa,r 3 not acquired ln violation of any law of this 3tot4, a0 long as It la held by the present owners; nor to lot8 or parcels o? land owned by all4na In any lnoorporatrd tonn or oitp or this sixt0, nor to the r0ii0tin8 class44 of allegs, who are, or who ohall be- come, bona fide inhabitants of this State, SO long as they ahall oontlnur to be suoh bona fide h- habitants of the State of Tsxasr "(1) Aliens who were bona ?idr inhabltanta of this State 0n tha date on whloh this Aot beccmee a Law. "~(2). Al.leAs rll&ible t0'0itlzeAehlp in the Urltse States who shsll become bona ?ldo hhabitants of this State, and who shall, IA coniormlty with tha natursllzatlon laws of the Unltad States, hays deolarrd their intsn- tlon to become oltierns of the United Statss. "(3) Aliens who are natural born eltlzsna of nations mhloh have a c0ommanland boundary with the United Statsa, "(4) Aliens who are citlzrne or subjects of a nation which now perzlts Amarlcan oitlzens t0 0x7~ land In r44 In suoh oountryg and any resident aJ.leA who shall aoquire land uAder the provlelons or thia article aball haos '18 years after he shall cease to be a bona ?I r o Inhabitant of this Stats in which to alienate said laAd. '?hrtlola 17. Tha provisiona of t&is title shall not prerant alien8 from aoqulrlng lends, or any lnterevt ti~e;'ain, in the ordinary course or justloe In the colleotlon of debts; Aor from acquiring lions upon real astate, or any interest therein; oar from lending money and sscuri~g the sam4 upon real estate, or any Interest therein; nor from anrorairi any such lien; nor fro0 eo- p,uirlrg and holding title to suoh real estate, or any interest thereln, upon which: a lien my Iionor:~ble .*lirad .. Clyde, .a. -%ga 4 have heretofore or may herrafter ba fired, or upon whloh a loen of oronay my have bean heretofore or haraaitar may ba mada and mowed. “Art1010 18. All allana, prohibited from owning land in this State under the pro- viaions Of this title, who shall haraattar ooqulra real estate In Taxaa by davlar, descant, or by purohaaa ar permitted by thlr tltla, amg hold mea ror rive yaarr; and it auoh alian Is a minor, ha my hold sane ror rive ~asre after attalnlng hi8 majority, or It of unsound mind, ror rive years after the appointment or a legal guardian. “Art1010 19. Any alien who shall hereafter hold lands In Texas, in oontravaatlon or the provisions or this title, my, nevertheless, convey the rea simple tltla thereof at any time barora the InatltutlOn of aaohaat proceedings as haralnafter provided; provided, however, that ii any euoh oonveyanoa ahall be mda by such alien either to an alien or to a citizen or the United Stetes, In trust, and ror the purpoea and with the intention or evading the provisions of this title, auoh oonvayanoa shall be null and void; and any suoh land 80 oonvayad shall be rorraltad and aaohaatad to the Stota absolutely. *Artiola 20. It shall be the duty of the Attorney General, or the dletrlot or oounty attorney, when he shall be Informed, or have reason to believe that lands In the State are being held oontrarp to the provlslona of this title, to institute euit In behalf or the State or Texas in the dlstriot oourt of the county where suo:i lands sra altuated, praying ror tha aeohaat or the same on bahalt or the 3tate, as In oass or estates of persons dying without devise thare- of and having no hairs. “lirtlole 21(a). Xo alien shall aver be appointed or For;llittad to quality as guardian of the estate of any nlnor or parson of unsound .-lind, or as exaoutor or admfnlstrator of the .lor.orabla ilrrad L.4. Clyde, Fags 5 estate of shy daoadant In this state, uhleas ha la pernitted to own land under the prorlslono or this title. nArtlola 21(o). Iand owned in trust, either by an alien or by a oitlaan of the United States, for tha beneficial uaa or ehy alien or allene, or any corporation prohibited from owning land In thla State under the provl~1on.a or thie title, ahall be aubjaot to ~orfaitura aa though the legal title tharato WUIIin such alien or oorpora tlon. alsrtiole 21(d), All aliens now ownlog landa In the State of Texas, ahall on or ba- fom the 1st day or January 1923 ii18 a written report under oath, with the Clark of the County Court Or the County in whloh s~oh land is located, giving the name, age, oooupatlon, personal desoription, place of birth, laaet foreign rasidanoe and ailaglanoe, the data and place or arrival or said alien In the United Statea, and his or har present raaldanua and Post Mrlor addraas, and the length or time of residence in the State or Texan, the fOr@ign prinO@, pOtentate, state:or aovaraignty, of whioh the alien may be at the time be a oltlzan or eubjaot, and the number or aoras or land owned by suoh allan in enoh oounty, the nana and number of the survey, the abstraot and oertirioata number, the nama Or the parson or parsons, froa when aoqulrod, the data when aoquirad, and ehall either deeorlba said land by matea and bounds, or radar to rooordad dead in whioh same is 130daeorlbed, which report shall be known aa ‘i?lJPCRTOF ALIZN G;.XXISHIIF . ’ Irovidad further, that all aliens Eonorable Alfred -I. Clyde, yega 6 heraarter purchasing, or ln any amnnar ao- qulring lands looatod in Taxao, ahall within six sontha after such purohasa, or acquisition, file nlth the County Clark or the County in whioh such land Is looatad, a ‘Report oi Allen (Rnarshlp,* in tan8 as abovu required. “.%ny alien who may now own land l.n Taxaa, or who may haraaitar aoqulra any lands ti Toxaa, by purohasa or othsrwiaa, who does not, wlthln the tlma praeorlbad in thlr Artlolr, file tha raporta hanin provided for, shall be subjeot to haw suoh land rorraftad and ea- cheated to tha State or Taxaa. The reports heraln aoqulrad shall when the allan Is a minor or fosana &arson, be A3za d’by the parent or guardian of euoh alien. It shall be the duty or tha Clerk of the County Court ot aeoh county to file and raoord the reports above provided ror In a eaparate Yoluna, to be entitled, *RZCCRD OF ALIE OWriRDLANDS,I for 8aid oounty, whloh reoord ehall be alphabetloa~ly indexed. The recording iaae ror raoordlng auoh report6 ehall be paid by the alien owner. UsaO. 2. All law6 and parta or lawa ~ln confllot herewith are hereby exprssely rapaalad. “Sao. 3. The rsot that aliens who do not propose becomlng oltizanr of the Unltad States are now attempting to acquira title to large bodies or fertile land in this State ‘orsates an anergmoy and an tiparatlva pub110 naoeeslty that this bill shall and it hereby dose take arreat.fTom and after its pesaaga, and it is 60 anaoted. * (3mphasi.s added) A careful study or the whole eOt makes it clear that the X,agialotura by 1ncorForating Art. 21(b), whloh wa have undereoorad, did 80 tar the 8010 purpoae of preventing an alien fron doing lndireotly, (that is by incorporating), from doiu what he is prohibited from doing directly. As bald in our opinion Xc. C-3911, an alien my aoqulre and hold title to real estate looated within the corporate ,c.nor,blo \lfrad ‘1. Clyde, !WO 7 liialts or towns. (&oh exemption ir oontalrmd In AH. 16, suprn 1. Then, labor in mid lot lppaara Art. 2lU(b) whloh 7-n requok: “Irtiola 21(b). 38 rorporotlon In whloh the saloritiy or ~aoa~Ital abook is le.zallv or as thowh owned b+ a ion-rmsldant, l.llan.* ii.cmphgPa addad). Lt la oleor to ua that the phrase *owned by allaru -ro!iibItsd by law from cwnla~ land In 2ha stats of Taxam”, ~;33;ia that ii the allass who own or omtrol the ntook of zuoh oot:.msClon are prohlbltad Zrolp OHnloF, thti RU, eatak .:a quastlon, then the corporation they aontrol la like- -::isa rrohlbltad. The above oonatmotion neoraa``rlly iollowa : n that alien8 are no,% grohlblted ,froui ownSng real $roparty in 1morpor.s tad toma. &id Artlola pmvl~!rs that land :-mad by 3 mrporstlon In which the xajorlty or the oapltal 4ocr: is zuunadby alIens Wo&11 be subieot tq~iaaohaat under 1. ‘. Trovlalona ;.,,e 03 tkle title, 3s thou& ov;a@ ~br a mm- n 12 suoh a oorpora tlon owns aand in an in- own cuk IO k. leoheatad? 4fa think not, rot the 400 aaya it ehall be aschestud “a8 thQwh owned by a non- ;-;lyJ me+. * iI owned by II non-rsaldant alien it ean- e asehan ad, a8 the low r~naalp glvsa to a non-raaldant allan thr right io own auoh laniir In krborporatad towna. It is also ai@!Ifloant to note that In the o&tI- catlon or cuf atctataa In 1925, the abow Artlale 21(d) was changed so 81 to ‘m UC-%ziot 0~4 rllana, but also slim ooz- ;:oratlons P to ako wr ttaa ragorta undar oath to thn County Clark, and groriding that dlleri oorporatfoaa aa wall Pa aliens . ;vho OIYL~ land In Taxno or wku sy haradttar eoqui.28 any land in hxaa, wP& do not r1l.a such raportr shall be eubJeot to here 3uoii load forfeited n7.d aachautad to the 3tat-a 0r Texas. SUOh .xtiaie 21(d) in 110~ oodiiiad as .ztlola 176, ?..;.C.S. It is, tkerafora, tLe o!;inlon of this drpartaent tl;irt a oorrcrufion in ~&lot: t:;a nujorlty of tha capital ,togi 1~ le;.+lly sr equitably owned by uliar;e my acquire ;lcd C:Y:X lots or :~aroalt) OS land in any inc.orForuted oity Or :3wa in t:tiQ .Xzta. It ;leosser?ly lo?-lows that euch lands ~xnnot be ewzheated.