Untitled Texas Attorney General Opinion ( 1944 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN Eo(onorablrII.A* Jamiaon, coml*' nopu-tmont of bnklng Au8tla 14, Tenr Tour 1d.t.r OS X8 or thlr d8p8rtm8nt r8lprdl r0ii0wO I ing 8nd Loan l oooaalons with the omditlon l 7, 1945 thm tku fioak- adto you thr otl~lnal H Whloh 888 8nd 18 th8 b8818 rOr OtU M iA8OLVUt OOaditlon, 8lOw with A.8 that rahtod to th8 rub)eot m8tt.r. ph Of OUT tlWWAitt81. 18tt8r 8t8t8d: f8 thUOrOr8 tr8n8mittl~ to no0 gW8UWIt t0 tb QrOV18iOKi8 Of i3*8- :;O. 1s Of th8 uW8 Of 'hX88 Rirl8tirP( to B'~ilding8md h8A M8OOi8tic 8?ll88-8 h8VO d8t8Eaii8d tbt 8Ubj8Ot 888OC “i’8tiOn i8 8O&UOt- 18% it8 bU8i8888 8Otlt?8- t0 hW, 18 f81110& t0 Omply 81th th. l&r, it8 U88t8 8r8 1880 th8li it8 li8bilitf8. - lnoludlu 811 it8 c8pita1 ItOOk - 8nd lr crnduotlag ltr burinorr In 80. Utn88?8 Ed un8uthoriz8d Oal%aLlr. It 18 OtiC definite oiinion that prompt 8t8pr a!-ooldb8 tsk8n to brIn:- 8bout the rOVOC8tlCll Of thlm 888OaiBtiO0'8 right t0 do bu8bl888 8n4 tt8 8P- uoaonblo 8. A. Ju.aoa, ~6. a pointmoat of l rooolro? thonof to? th0 p ur p olswimu~upl~ w ltiura.' 7?. mpm WW d~iaOm tbt at 8 O~f8?0,#0 with Mr. Bu8ot OB alay aB Lo ruggoot8d t&t tko BMk- la@ Cori8oimot 8hoaM kko twa r~iilr #top8 a8 ret out bolawr ‘(1) bpO8iiiUuy ?OpWOt th AttO?MR -8-1 to do t-0 thing w lob will brlu about th8 ?8vOOatlOa l$ tho A8ooO~tioa*B right t0 (0 burlaorr 8ti th8 appOinti& Oi 8 ?OOdV8? th8?8Oi fO? th8 gU?pO80 Of WAIL&@ UQ iti 8?f8i?& =(a) ?hro\lgh ll o ffiOi8188t li8Ul th8 AI- 8OOi8tiOn'8 p?dt t0 do buOlaoo8 fa h=O. *Ia rlw of th8 i8ot tbt thuo rugg88tioM Ubr808 8 proooduro which ha8 not boon follorod In ?OOpOOt t0 ?iO? 8lt&WtlOm Ot 8 8upU8bl8 B8tUn W8 r:.Otid 1E 8 t0 ?808iV@ JOU? Oi?bid O@liOll to th8 8??#t tmt it IO OU? dUt7 ia the p?Ui888 t0 do tho#o thh@ l-8?8t.a above. -EiU4O?OZ8, undo? 8dviO8 Of O??iOO COuIuOi, WO h8VO p?8Ouol8dth8t the juri8diOtioo l? th8 Colmb- 81OnO? 008000 UpOA th8 ?.18tiOC O? 8 mtk? t0 thC AttO?ur O0n8r81, whioh p?UwQtiOa ha8 88br808d tho thOUght t&t t&8 Or?iO8 Or t&O ALtO?MY aa~8-1 8itOr 8ami~g a11 th8 ?88t8 WOUid UOO it8 010 u8e?OtiO8 80 t0 tho 8dVi88bilitJ Of iMsitUtio( b&81 ~?00806- lw. In Oth8? words, it h88 bran our aoariotlo8 th8t it Im Out duty tW?d8tO 8 lltU8tiOn t0 the Attoraoy GUeX81 8nd t0 88t Out thonla tho b88io Of OU? ~i8W8 ?O? WMoh ?888- th0 h8t @OntOM O? th0 e?u&?qh in OU? 18ttO? Ot d8tO DCC8mbOr 7, 1913 qUOt& 8boto lXp?O880d OU? dOiiCit0 Opinion 80 tC Wh8t 8hOUid b8 dOnO, but pCh8pO th8 lrp?088iOn do00 fill 8hO?t Of 8 ?8QU88t. ‘A* to the 88co5d rstarrno8 we war0 of tho opla- ion at tho tlw rho lottor of d8to moatlonod wno t?oa8- 8ittO& t0 YOU tbt th8 8albLll1145 Of thB peldt t0 d0 bwlaro ud roroo8tIom o? the ASOOohtiOa’8 ati?tO? would ?8qui?o lo~.rt8Otioa, OU? Vi.WO la thi8 ?88QOOt bvin( bean 8aqyrod ??OB 8 ?88di5g Of ta0 Rot00 Of Doolalono, under Artlolo fU3la-15,Vo?n0ri*8 Anootatd i.iooO?8bl8 8. A. Julooa, &W&8 a ~xaa statotu, wnloh rofonnoo la ma rollart l‘SUtUtO .8P th O?iSbw# l- 8laaloaar to maul lortltluto as nuther- itr or buildlry aad laa8 laaaoiatio8, with prorlalon llxlry tauo or “a4 actloa,w hold to authorlao oaamioolo~r~o amulmut 0s pu8it 0glt by 00u-t lotba. 8bnw 1. Lou s.‘“?I&i&l&!. & tw h88.a (CiTr A;.P.) bo 8. .. %a tho 8UbjOOt Of 8~U111lU3 the ABO0@iatioa*O pemlt to do buoinooo it -8 au? tho t th8t WO h8(. 9erh898 gOa 80 ?8? 80 OU? 8Ut&?itr % th0 p?d888 pOmltt8d la our letter of d8tO Juae m4, 1945, 8 COpf OS whloh lo lnoloood. YOU will note the m opocltl- aally 8dTiOOd tho Board 0; Dlrooton of tho A88Oai8tion t&t ‘the Oondition Ot tho 888OOhtiofJ i0 luo h that 80 dirooto?, Of?fC8?, aplOy O? 881OOYa 8hoU1d 8OCOgt 8w mOMT f?O8 aw 8CU?OO 88 W-Oat Ofl 8hU?U O? 8Jmro 8000WtO.' *X0 trust, therororo tht you 088 hror 118 with YOU? OpitliOn011tho 8&80t Htt8r, 8iOOO it will b8 of ralur not only in thm in8tmt C880, but will prorldo dir8otion to thi8 OrfiC8 On 8itU8tiOM of 8 OWQ8?8bl8 MtU?O whloh my 8tiOO in tho fUtU?O.’ . TitlO HO. ii4, ~8?iiO011’0 AMot8t8d Civil St8tUt80, 0011- tpi.nB the 8UtUtO8 83p1h8b10 t0 8nd gOfO?dB& buildi= 8nd 10&B 8OOOCi8tiO~ in thi8 SbtO. Dnd0r th* prorloloa8 of Art1010 0018- 7 fOrnoa'8 AnaotatOd Civil St8tUte8, the wag COMC4i88lOa8rlo d TOB luponlolon and oontrel over all build- aad loan as80018- tlona doing bwlnooo ln this Skta~ Artlo 88b-w 8nd 88ti-14, V8='0 AMOtatd CiVi1 st8tUt00, 8r0 88 r0iia: ~tlolo sala-18. .In 0880 tho Bmklq C&8- 81ti8? Of fOX80 8m1 find, U9On dO8tiOO Of f?0O other lvldoaoo, that 8q bulldin and loan 888oOiatIon 18 omduotlry its burlino80, in wholo or ia pa-t, OOa- tnw to 18W, or f8llly.W 00``~ with th8 18W, that it0 8080tO 8r8 1888 tbn it0 llobllltlu iaO1Udias a.1 ita 0891h1 8tOOk, O? oondootln6 it0 btuiJh.08 h 8n PII- l8fe uMuthorlr84 a? tnUdUhAt DEMO?, the &Ilkiil6 Cor:f8oioao? of Ten8 shall, b:: 8a order in aitily 8dd?eOOod to th0 prarldont OS ouab 8OOOOi8tiOn, diroot nonor8blo li. A. Jamlooa, g8~8 4 lttoatioa th8?8t0 ld OrdO? lcmpll8ao8 dth tho 18w, aad tint tho lo8ata bo lnorcoad to lqtml llabllltlw, an4 In moo lwh loaoaiation aMA1 roiuo or naghot to lmpl~ wltk any ouoh or4ar lawfully Mda, or 18 say oaao MJ r wh l8aooiatioa lo larolroat or lo daryor of lnaolrur~, or it0 laoota are lmpdrod, th8a tho bak- lag CcrJOOl~O? O? T0~88 8hUl MWA It0 OO?tlflOOtO ot 8Utho?itT 8nd MT bogla 8a 8OtiOa to nook@ t&8 ohar- tO)r Of owh 88OOOhtiOn ti SO? a w intro& O? r.- 08iVO? th8r8Oi ld tho dildi& U9 Of 3”t8 8?l8i?8., Aay lotlon brgua wdrr this sootion rkll b8 brought in tio COUlltJ Whorr 8UOh 888OCi'AtiOa ha8 it8 p?iIiOigcrl 91800 of bwlnooa 8ad In tha a8mo of thq Stat0 of Toua oa ?a- l8tiOO Of th0 B8nk1~ COIE818O1OaO?Of TOm8, 8ad Shall bo proroautod by the AttOraOy Gon~81.~ hrt1010 maa-14; 'Should th8 dhaking C~i8OiOm8? Of TO=8 find, UpeU lx u in8tio ath8t , tha 8??8i?8 Of w 8uOh 8SOOO1a- tloa 8re la umound aondltion 8nd the Ictere8t o? the pUbiiC 60~1~6 th8 di88OiUtiOn Of 8UOh 88SOCiIItiOIi8nd th0 Winding Up Of it8 biD888, it 8hdi 00 ?8?O?t t0 the Attoraay "Jenertilwho rh811 in8titUtO th8 propor prooaodIng8 for that PUCPO88.” A?thh 0818-15, V.?UOfl’8 #AlllOtit~d CiVil StrtUtU, lak88 8 rOtu881 Of th8 8tV8OCi8tiOn to >errit 8U 8XaaiMtiOll Of it0 8ff&i?# Of 8OtiOn t0 Wind Up it8 8rRi?8, 8 08U88 ?OrfOit it8 Shal'tu, 8nd to llqUid8tO the 8SOOOi8tiOa. Rerrrrlng to rirtlolo8818-16, Vernon*8 Annotat8d Civil StatUt88, it i0 88id in the OS80 Of i.OnS StfIr Wllld?ng 8ti LO8Il A8mOi8LiOa T. Skit8, 153 s. w. (86) alO: ~8ootloa 18 dool8rr tbt tha 'rlghto ad raudloa glron by the two prOo84lIq 88otioM am cuatiattV8 of 88Oh other, but that a0 inVOlWt8~ llquldatloa or any u8oal8tlon rh~ll bo 80008p118hmd lx o o g88t 8boro provld4d ; th8.t 18 t0l8Tr 8t th8 Suit 0s tha Attoraor 08U8?81 on In?ormtloal~d``~t&f th8 Bamhla6 Comloalosmr of Taxaomw rid88 tkt l? thr court the 80800 18- dotomlaoo th8t tiCa' 8f?8i?8 lhOuld be llquid8tOd and 1t 18 80 OrdOrOd, than th8 bmkU& Comd88lonor rh8ll rorthwlth kko 908800- 8iOa Of 8UOh 88oOO18tIOm, it0 8888t8 8nd 8rr8irO. OOllOOt ’ Ronorablo ii. A. Jaml8011, pat!rb ik elalr, pm7 It8 dabtr and oblQation8, ad dlr- trlbutr it8 lmatr to thae l8wfull~ ontitld thrnto- flpr rrportly lt8 artion to th8 oourt ror 8ppronl. Certain buildins and loan l88ooiation8 &*:a mi88d th8 qUO8tiOIi that th8 AttOrn 08li8N1 b8 80 lUthOrit;l t0 bring a 8Uit uod8r Tit18 ti, lid 888 8P8OiriOauJ 8Up=, r8qUO8t8d the &nLin(l br Comlr8lon8r. *Itor oar8tully OOn8ld8rl8g MtiOl8 8Sla714, 8Uplm, and the Cm88 Pi LOnO Stir BUildiIlg & LOan A88’B., V. Stat., 8Upr8, it i8 our Opinion that the EUUikifh# cOESi88iOn8r should rpeoirioally requut th8 AttOm8y mnoral to tll. 8Uit to forfeit the oharter ot a building l8d loan ls8OOiatloa which 18 i88OlV8nt.Or l8 OoDduatiq it8 bueinama, In wholr or in pal,t, contrfiry to law, or railing to cwply with the law, ato, Stated another war, it 18 our oplnlcm that the ilfmking Cd88ivIl@r 8hould 8paOlilaally rsQue8t th8 Attor n8~ oonural to do thoro thing8 rtloh will bring about thr canorlla- lion oi the 488ociatlon~r olurter 4nd ii ncto88ury the ap>olntmont ot a reoeir8r thereof iOr th8 purroae of rtndln- up it8 lWalr8. #m now Ocneid8r th8 88Oond $8tt8r mntlonod in your ln- wiry., 48 note that with ref@rOaOs t0 y>U 88OOnd QX'OpO8ition you oite the call0of Shaw vg Lone St4r Bullding k Loan &iIsoc:l4tlon,40 . x. (i?d)96&3,holding, among other thing8 that tho &taking Coa- L88loner has authority to annul a permit o& by court aotion Th Th18 Ca80 h44 be8n reVer88d by th8 Co38X188108Of A?QMI18 Oi Teia8 ln the oa88 of S&W v* &nO Star Wllldlng & LOan .48soCi4tion,91 s. vi. (al) INS. It 18 stated in thl8 tam: "It 18 held by the Court of Clrll Appeal8 18 SMtlon 15 of the 1929 Aot 8hould not be giran th8 con8truotion that it authorlta th8 Banking Coml8- 8lonsr to annul a :Jemlt to e0 bU8inO88 In thi8 state rlthout a court aotion, becaure suoh a cormtruotlon would rendor the act uncon8titutlona.la8 in tlolstlon Or s8OtiY 19 Or ArtiCh I, 4ne sOOtiOn A Or ArtiCl8 B of our StEt8 ConstitUtion. 'Alethlnk thi8 holding 18 error ior tro raamon8, first, beoaure the rrry uord- log or the Aot rill persit of no other OcWtructlom, and, 8econd, bwausa 8uoh omstruction doer not rendrr th8 Aot riolatirr Of rithar of the above oonstitutional prOl18ion8.w In the 0880 of Yood8 V. klchlta ?4fi8 Bulldlng L Low Association, 96 S; ?i. (Bd) 64, the Su;romo Court Bald: , nunorahl8 m. A* Jti1808, pQ8 b n l '&ti81U 669 4ti 66&d& 88&,18 8i- fatUk8 it tb0 U81U81V8 @?irr) htJ 8t th8 mu- b6 COmd88iOn8r t0 48t8XMiJL8 tk8 aP8lJtib8 81 iM81t~, Ud, if ha d8tOr8bO8 tbt Ua aUOOi4th 18 iMO1t8& ati hi- aftOr WtiC8 tC Mk8 it8df 8OlWJit, it 18 d.' duty Co aatatitbo P82Uit to d0 bP8iM88. a80 th8 Sink- i4 CM!Bi88iOMr IS c;iVUl 88rbi8 Oth*P dUtiO8 in thr 8t8tUt88 d8fllW$ *hli!h78 htODd8d to ~tOVWt th8 ~p~m3loa or an Anaoltant 8arociaMon @I thl.8m&8. (b&JO 608 th9 C480 Of ShflW V. %hltO!l, 08 41, ?il ti. ?z'. (#id) 498). 18 rlmt of tlkfor``olng anthorltlms you urm rrrprstful- iy 4dd88d bbct it i8 tb OdIiM Or th i8 eOp 6?t!``8 th 8t ~h 8D l build lag 8ad leas a88oci4tlon ia on&ago4 la on illogol, unauthorirod UJ+ 84r8, rrmdulo8t +nd 18 lnoolvrnt or ooadu8tlng It8 Li- pnOtie8, 1~88, in rbalw or In pet, CCatr4ry to the 149; or falling to otmply with the 14~. tbe btlnkliy Coamlsolonor shall by 4n cmlor in vrltln( 4ddr4orod to tho prorldent oi 0~03 assoointloa, direct attoa$loa theroto and crdor u;?;liancr with the 14`` and Ch%t tha 488ot8 b8 inOru88d to lqu41 lisbllltiOS, if the llabil~tloo dr’J greater t&n the a804t.8, ud in OdOe 8UOh 4@SOciotiO4 r9tU300 and Als~3OtS t8 o.rply wlm any 8UOP order larfull~ mde, or in e*ao anl auoh 488OOi- atlon 10 lnrolront or in .?im,yer or lasol-.mnoy,or 44aetr as0 lmjmlr86, than th8 B~ak14 CO&miS8ionOr Or tOX4S 8h4u aGaUl it8 Oartl’fioatr of authorltr. th0 oMida3nt 01 3 08rtlri04t4 ~i 4w.0rity 0f 4 h;llldiqiona l~.~xocl;tlcn i8 not to be oc1fUu88d wit..the fortolt- ur8 or u4noolktlon of 4 ch4rt4r or tL0 oruo4ll4tlon of 4 permit to a0 bwlwu’ in trrl8 Stotr by 4 rorolgn oorporation 8r arrocietloa. Tour4 tory truly A;:promd Juw 9, 1944 3cii;U J-T'ZO~XEX CP ‘rWM @rover ~ollon Attornor ci4nsr41 ot T8a48 Dy (S) .trZoll *11114m8 Ap;lrotedr oglnlon Camlttu by A88i8t4n8 B. Y. B., Chmim4r