Untitled Texas Attorney General Opinion ( 1944 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
GROVER SELLERS
ATTORNEY GENERAL
govorabls n. A. Javllvon,Celmlmsianor,
ntste n+artwnt of Bllrkhlg
Austin, Tuaa
pssr Mr. damlsonr 0pialm no. 0-aa81
Ro: Wb8tber
IwJgb the t.tl.ra1
ImeLoanBamk ntirawt pro-
grw rhloh erl aore and vmplo7evs
if the rariou batb8olYieaatl~
boon UtenQotl u8 benefita et tbo
plan to be at d uplefscbo Of
a nednal anwal prrim,
d by tbo rploteeo and off%-
tdafi6n and part to be psld
pore all vvder a vpveial trumt
rem adopted by duly dedgwtml
. It39 l
1lvo prrrided in the
pralum r7 be pm16 aoreria(l: the
the offiaere snQ smplo~ees vhioh
a mtber Iargo vutla7 of fwdn or sost
08 tbs p8rt of avmv of our lmsoalatlono. Speslfie~l-
17 in 8 amber df QUHS eomputatloaoP the prwlm
that would bs due In order te vntvblivhbenefits cvw-
wing prier s4tnlcrsr~gre~tas *we ~~90eOOOd0to
$40,000.00.
.It becoaes pertinent for Us to deternine rhethsr
or not guoh an inrootwnte if it bo am Sarvvtavnt,1s
permittedh7 wr lavv and it w 80~0 direotion as to m
lpprcpricte entry on the books of the 8smcaiatian cover-
359
povvrsbleFf=1. Jan1140r1
- Page 2
lag tbs WtlaJ of nlnds. The anbjeet matter
3s et
suah lmportanoe and in the lC;gre@ata intolrem
#b-
mtnntlal amm oi money thst we are eonstralmea $e
lttaeh hereto II baeklet rhtab aentaim the mfee
and reffulationm applicable ta the retirument rrm4
of the Faderal Rome L4av Rank aatca as well an the
by-laws vh¶sb hsre bean &Wptsd by- tbe trustearn of
tbe fWd.
'Your rtttmtlon Iv dineted te aeatioll 88 4? #I4
building and lenn laws and apeoltiorl?7ta that por-
tion of the seotioa whiah reeds be tolYovvI
g'kWery avvoalatlonell@ble to bewme a
member of a Federal Ilo# Loan Ilank under the
groHdana of the A4t ef (kqreea kn~vv as tbe
Fader81 iMa 11oab uank Aatr lppreved JuY7 W,
1922, am amnued ana an me7 hereefterbe enesul-
aal.la autbarlaed to do 411 tblag4 a4 a7 Be w-
qutred or permitt under u2d Aet, or auy amend-
ment therote, ia or%sr W obtain, oeatlnue,or
temlnate rmeh MPBermbipI an% to lem 4¶1 the
dvt*ea, obll&atiensr revwvaelbllltfruvnd flds~l-
itlee lnQ bee01114 entitled to all of tbe bemaflte
pr~~laed iQ aid Aetr aa uclat14de~3 8a ew
hereafter be meadatY-"
,If the quotmd aeetloa ebould 144% legal aUpp0rt
to the aat at an aemoaiatlon on mubaeribin@ for pw-
tlalpatlenin the retiremsat fund alaathe pnymelbt af
aeaemrly saouate to qu*llQ tbetetin%er e then we ehOt0%
like rdrice as to the entry that ehrnld be made by the
neuei8tiW an am OffSOt t0 tb4 044 Of tb4 fU4d4 tram-
aitted to the trtmtae8 Sn behs~ltof the evplojee4 of
the lemmlatlm, tor mush emtry vi11 bear ti lspf vlg-
nlfleenae under stber meatlenmat the law vhlcrb have ta
de vlth r4aewea# umllvided proflts avl qwratlnlt 4x-
pan840*
lTt It vhmld Tel3 ow tkat pmrt¶olptlos in ~leb s
pSan ns herein refarre% to is lawful under that portion
of fieotion 38 hereinsbore qnota%* roe?% it foYY ov thr t
the hnard ot dlrectorn ronld be autborlsed to oharge
their romwe ar Wl%iti%S% plWfit lWtIS8t, pre8UdIl(t
thmt the *ante Is in exdoea of the amount required b7
1sv aorerlva the vast of mash pvrtiolpatlem or would
jt folYM that the tUktUm of th4 Wav4a8tfOU ia #UCh
that the eharpe or ontry nn~Y% hare to he nabs,i$@nat
f@nornbleII.A. Jomlean - page B
the eperatln~ -ame leoouat? You vi11 no doubt
reaognlae sonslderableirpartraae to this pbar of
aur InqulrJ for if it abould be bald that the ooet
of pxrtlelpetloala the plan met be aanvtruedl v an
opereflng expenveI thev it light follav that a nm-
bar of o urleaoa~atlonm aould not partloipste la tbe
plan ror the abxorptlovol vuvb an apemae dnrlab: a
alx or tvelre mtbs period rl@t be #&I& lo te lltb er
amve a reilustlonin tbelr (Utldend rate or craw4 the
aemolatiom to oenalude aat to ~rtlelpte in the pm-
?F-•
"Tbur In snmaryr we are inquiring atito vhatber
or net i State abartered UTjIbg4 aad lean anmQeiathm
08x1psrtlolpak la the retlrammt plon af tba U’odml
ilaw Loan Bank Syatom and If ea vbethet or mot tba
soot of ~rtlsipetien muet be abergod te tb8 aeaoaia-
tion’m opentIn erpenme leeemt or a7 It be eba*
to th e
lesaeiati~a'e tmdiTided prefit or weewe 8b
@aunt pIWTi48d eveb 8eaouate are In lxeeee at mte
premedbed by lrv lnQ tbe lberse ma rde will net 10-
dam6 tha to munte Wee tb88 la prewribed b7 law.*
Yen baTa eerreetly 4tetaU t&e parfluent p@rtlOne of
8eotlaa 91, Artlale (Ibla, of the krleed aTi1 8htatee (Vernea'
Cedliiastlor),thu cane belag eanklrnd la Lkb&lrleiw 8 tbereaf.
Ihs Retirament Rmd mentlaaed b7 7an appear0 te be
areated and adminlrtered unQer a aealaretlaaof tlw& *blab la
xv unlnwrponted lawvlatlon , aompamatl of sertaln nsmetlloderal
Ew~LoanBank*~ butvitb 4 plPTidOmfar tba l4mleeleu efatber
Bow Low Ba8ke 8meeMiag to the lgremnt 6
¶¶I¶@ dee1autian OP tcuetr loaordiag to the printed
g r o a p a etns
loeampnayln~ your inqul~7, sontelas the pmtiden:.
Vbemsv tbe eetxbllvbmentat tbe uld Retl:reatemtton4 of tbe
Fa&~rat llwe Loan IBaulrbjete& and the rules *ad reguPIatieme
la aormeetlantharcn3tb hate boon duly lppr@Ted BT the Pe&enl
IhO Lean Bank A&mlnlvfratfan~gvhlah we interpret tv mew the
urr~ertsklng haa been duly SppraT4d by t?m Fedsrvl Fkmv bean Bnnk
Boar% of tbv vtatuts. tU.s.C*A. Title l*, 8eo* 1437)
It In the opinion of this depsrtment tbet the qme,$ed
portion of 6eatlon .Tphoreinabere vet out 8a(lvsatharixe State-
@hertared nrlags ad low lmsoaletions to pwti6ipote In the
RotlrvmentPlan at the Federal llomeLean Bank Byntea b1p611belag
4Ilgible an8 beaeemin~ a momber of s Pedsral Home LOW Bank4
t
”
361
newerable He A. J&non - pa,g~ 4
T h is lnrerm par flr mti8qairye
We apoak nm with rempeat to your meoond laqu*ry.
fhlr lntalret~a question ot bookkeeplsK prlmarlly, perhaps,
but nmerthelems a qw8tlon of law , a0 you lndioate, la prob-
ably imo1rsB.
It im the eplnloa et thlm departmettt that the de-
dw&lonn frea the rlarlom a? apleyeoo lheuld~ of eourae.
be earrled In the leaeuntm am an eperatlag expeamo~ ier in-
dlmput8blJ it Is a part at malarleo proper. Llkewlme, we
tbialrtbo oentributlonoof the apleyor nbould be oarried am
0pratlnR exporr~~~~ mob itw im in the nature et a mlary,
&tee It lm a part ot the emoYant?tfor tbe mnlee, a8eb
eelrtrllmtion, along rlth the doduotion ?rem ulary, going te
enIreup the fund. It la wrmly a deforrod fttrtltar wra-
tlon for tbe amplo7ee's menloe.
The oplnlen la Byrd 7. Qltf of DmlYam, 0 1. V. (8)
WBR, mupp6rtm thlm reamobing~ In @tat opiaion it la uldt
"Thor0 la ttoreamea why a olty say net *
gagm ltm mewanta and 0mpIoyoem upon 8th~ tema
o f p a y m elnt
oaeptah?o ta beth prtloa. The plm
autborlmed by the Matute wtttaplates in '10-l
offoat tbmt a# wwpmartlon t&o ltiieer~ and e
ple7eoa naamd mha3l~reeol~otho rlarlea lgued
upon to bo paid perlodlaally and &al1 be en-
titled to ~rtSofpto tn the fund prevldod far
pen*lous lcoordlttgto the rtatutoryplan. The
Yaw pertaInin* to maob ample-at lm neoemmarily
8 pm-t of the eontmet of ~loymont and lo read
loto the eoatraat aa ialIt as thaq#! it had beon
lstua?1~ lnoorpawatedtherein 0 l l e When an
l
ottlow or eapleyu ooaln6 Within the mtatute 1s
mplojed and ovldenoem hle amsent to the pendon
lbhame, he thowapan bmm a blnd%a# oontrast ritb
his exaployep for the ltimlatod ularY and llko-
wlme fo be 'entitled to partlelpati'la the had
upon the term6 premsrlbetl~
.l%e right te partlolpte in web irraa1s
theretoro not a gratuity or donatlon In any menae.
It la au RUOR a prrt of the lgreed eompenmtlon a8
1~ the aonthlr otlpend.'
jpmorable ti.A. Janleon - page !!
Tbo fund lnrol+sd in that 6ame was a cltr pnalon
find, and dmllar In Ituralefieot t,a the one unfler con-
ret-y
~ideration.
Trusting that what we hrts maltlis euifieient mower
to your ~nquirlor~we are
A nwi s&.&at