Untitled Texas Attorney General Opinion ( 1959 )

Honorable Zollie Steakley Opinion No. WW- 562 Secretary of State Capitol Station Re: Authority of the Secretary Austin, Texas of State to accept and file Articles of Incorporation which contain a stated pur- pose clause and related questions. Dear Mr. Steakley: You have inquired concerning whether a charter should be,:filed containing the following purpose clause: “To eel1 prearranged or prepaid funeral services or funeral merchandise (including caskets, grave vaults, and all other articles of merchandise incident- al to a funeral service) in this state under a sales contract providing for prepaid burial or funeral bene- fits or merchandise to be’delivered at an undetermined future date dependent upon the death of the contracting party”. I respectfully direct your attention to Opinion of Attorney General Mann No. o-2736written by Ardell Williams. I think this opinion in its answer to the third question there discussed will resolve the problem with which you are concerned. As I understand your question, your office feels that you may be precluded from filing this charter because the business described within the purpose clause may fall within the pur- view of Article 14.37 of the Insurance Code, requiring burial associations to organize under Chapter 12 of the Insurance Code and be regulated under Chapter 14 of that Code. Article 14.37 Is a codification of Section 2’3, Senate Bill 135, Acte 46th Legislature. The third question discussed in Opinion o-2736 concerns an activity which would be within the purview of the proposed purpose clause. That opinion holds that euch an activity is not governed by Section 23, Senate Bill 135. However, you must require the purpose clause to be amended to add the following restrictive alnguaae: “Provided however, that this corporation shall not engage in business a8 an insurance company or a8 a burial association”. Honorable Zollie Steakley, Page 2, NW-562) The corporation must, however, comply with Article 548.b,Vernon's Civil Statutee. Very truly youm, WILL WILSON Attorney General of Texas Wallace P. Finfrock Aaeietant Attorney General WPF:aw APPROVED: OPINIONcoMITJ!EE: Geo. P. Blackburn, Chairmen Marietta McGregor Payne Marvin Thomse REVIEWEDF~RT``EAT~!ORNEY GENEBAL BY: W. V. Geppert