Untitled Texas Attorney General Opinion ( 1943 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
Honorable Sldnsj Latham
Seoretary oi State
Aurtin, Texar
Dear Sir:
You ham ropored ohartor
of “Parkview, Ino.’ on on the follow-
lag queationrr
divisions o? the
er oonetitute a
t upon the statutory
the ohtarter?
light Of the WUlOUEi 8UbdiT-
Honslng Aot or other Fadoral authority7
‘$0 If the Federal Housing Ad.&ki~tratiO~,
as auoh, oannot own euoh stoak, oan it hold auoh
ato& through a trustee or the Yrderal Hourlng
Commisrionsr or Administrator?
366 ‘
Honorable SIdmy Latham, Page 2
*6. Does the oharter provide for an
unauthorized delegation of authorltg to thr
owner of the Clase A preiarred atook In oohtra-
ventloo or &tiOlb 1327 or other provlsIons of
tEe Texsr Statutaa?
“7. 10 thsre a burden on thir Department
to exa~inr into aatailed by law apaterlalor 40.‘1-
tra0tua.lrights that might br Inoorporated Into
a proporad olmrter, and if 80, wEat would be
thr rffrot of the ap roval by t&I4 Departsent
Of a oharter OOAtaiAPIl& dotriled 4Oatraetual pro-
vIaion that might ultIuat61y bs held llltgal?
-6. Should the ohartrr br apprmed an4
filed by this Department 44 bring in oomplIanoo
with the lawr of Texae governing suoh zntters?*
Tour oonoln4Ion4 together with faots giving rlsr
to your Inquiry as oontalnsd in your letter are:
“It I4 the view of’thie Dspsrtuentithat
rsvrral of the ohartor rovlslons contravene
the lplrlt, if not the Potter, of the ststutos
of T&as govornlng such uatter4* and that mcb
of t&o material In the ohartrr i4 thb roper
4ubjeot matter for the bylaw4 and/or tIi
4 doed -
of trast ok other contzecta to ba sntsred Into
by the omipany.
%6Ctfon 2 of the oharter atat4o verbatia the
pup060 as oxteinad In auhdivIrlon 47 ai Arti010
1302, a. C. 3.) 1925 bat thir p$poy,hJ(;.rthr
ol.TboretedIn subsso~lona (a)*
we aonrtrue ths word ‘rent@ L 4ukvoObIoU
Ia) ‘of motion 2 of the ohrtar and the rohd ‘loaso’
lg aubaeotion (b) 44 enlargemsats of the rtatatory
parpoae as provided by subdivlaion 47 of ArtIob
L302. $v oanstzua aubseotlon (0) of seotion 2 of
the rharte+ as belag oontrary to tha EtatUtWy
purpose whlah aathoriaaa suoh a OOrpOratIOn~‘to
aoouclulate and money,’ but the authority to
.
Honoroblo SlQe~r Letho=, lU* 3
borrw mao aigbt ba proper under orotlon 7
of Art1010 I 320, R. 0. s., 1925. #4 bonotruo
the 18aguogo *a4 OT 011 Of tho Obf4Oto Of 188
buolnroo~ a4 oontalnd IA oubo4obIon (0) OS
oaotlon 2 of the ohrter lad clhr langPa@ @thb
lOoW89llslIm~t of ~9 oa4 or -8 O? thO pnrpslru'
am owUoIn6d la rubaro%ior [e) of oqotlon 2 d
tha ohrtrr;.eo Indloating,a dual pwpom OS the
oorpurotlon omtrary to’ the otatutso. The lp p & l*
at oonlundo thot 011 oooh l ~&~IvIoI~ao ate Mro
lImItotI6ao upon thm aala l tatutbr) puropoeo 4111~0%
“TN to@al at~it81 otook io 29 858 ohor;
I value ot on4 dollar oaoh, ofoosifI4d
:: toI%?v#*
PO. of Sharwq Valao
a2488 d Prefsrred steak
~glB3y~arr64 Stook
“It appaaro from the affIdav%t attaohed to
the &arteP that th8 one bun&ad ohalro 61 C24oo
A pre~crrod 8toaL hao bean luboorIb4d and old in
by ‘cfileyJO&OOA a8 Truotoo for ths Ired4raP XOuoing
kdminiotntlon, and w4 are auvioad by Hr. ,‘obnoaa
that thir rtocrk la to be trmoforred to tha Frbrral
HOWin@ COQOli8OfOAO`` Srotloa 7, oub4ItIoIono
tOgeth4r wltb oth4r aootlono oi
-, grant brood poaro of oontrol to the
I o pter,
3P%-
orm4~ of the Claso A pafsrr4d #took in lm4 In-
etamao 4roaedIng th4 porrrroof the diroot~8.’
‘X. The purpoor for whloh it IO fofa4d IO
to ar4Ot or rrprlr ml building O? IWmta*to,
ad to aoammlatr and lend SOAOJ for la ldpUWOO~4,
ad to purotuor, 0~11 end oubdlrlda PO41 PrOS’*-Y
in towno, cltlrr and vIll4g44 and the12 rubwbr,
368 _
Boaorabla Sldnsy Latham, Page 4
not extending more than two mile8 beyond thrlr
limits, and to aooumulatr and lend money ior
that purpore.
% ordar.to oarry out thr purposa o?
the oor oration, a8 herolnabote ret out, it
18 the fntsntion of tho lnBorporator8 herein
to prooeed a8 iollou8:
"(a) To errata 8 prlrrtr oorporatlon
to provide houalng ror rea8:or ~18, and
to aoqulrr auy real wta$a or lntrra8t or
right8 therein or appurtenant therot and
anr aad all peroo.ualproperty In oonarotloa
therrrith.
l(b) To lmproto and operatr, and to
8811, Oonf8J, arelgn, mortgage or 18aaa
any real estate and any"personal property.
.(o) To borrow aonry aad lerue rridono8
OS lndrbt8dne88 in furthoranoe o? any m all
oi the objeotr of its bualnrar; to 8eouro the
aame by mortgage, dead of trust, pledge or
other lima.
"(a) To apply ior and obtain or oauso
to be obtained from the Federal Housing
Comml8sloner a oontraot or oontraotr o?
mortgage ln8uranoe parruant to the prorl8-
Ions o? the Rational Hourlng Act a8 amended
ooTerlng bondr, note8 and other erldenoes o#
indebt&lne88 188uad by thlr oorporation and
any indenture o? Mortgage or Deed oi Trust
reourlng the 8ame. 80 long a8 any property
of thl8 o,mporatlon 18 enoumbered by a mOrt-
gage or deed or tru8t insured by the Federal
Hourlng Uofamlm8loner it sheill engage in n3
burlno other than the OOn8trUOtlOn and
operation of a War Howlng Projeot or ProJeot8.
, . ?..” 369
H0n0rabl8 Sh%aO~ Lathsa, P8gr 5
“(8) To wt8r into, and wrry porton
OUt OOIltr88t8 Of Uy kln6 to, O? lLOO888W~
in oo~ootiw with, or laoidental to, the
8ooompll8&mat of ary 0~ or ai010of t&a
pIW~08OS Of th8 OOR$QYSt~Ofl."
Parapaph 2 a? the rbartor (with the OXSO $1011
Of th8 8UbdiViSiOW thIW8Of) 18 tak80 VSPbttin fU SOidiV18lQa
47, Ar8lol. 1302 f. Al 0. 8,
It 8Uh8O~t~OU8 (S), (b) (8) 6) Ulb (8) WESt%tUtO
an llu g a m8a upont thr purpose 8oa~ala8~ a Fwagraph 2 rush
ohartsr would be oondoaned 88 ooatalniag a010 than on8 purpose
UfIdSt th8 authority Of RWIISO~ V. Tad, 69 S.W. 1 5, M6 Gordon
v. PI88pt~lr8iorRlocr dh Irrlgatloa Co. 82 9. X. 3.
A omrotul ooasldetatloa Of 8UbdiVi8iOn8 (a), (b)
(8). (d) SJd (0) load8 US t0 th* 00&8~lI810R that that UI), dth
Oil8 exorptlu herrlnaft8r noted, but S``hKISt0r~ Of th8 author-
1184 PWpOSS. I?lMPll bh. SOF~OrStiOIIOOUld 60 ILlit886 811
thing8 smntlonsd ia Su4h 8UbdiVl8i0a0 Lf were aOt OOatainbd
in the ShartU and henoe SuOh rnuoratsd ri t8 &a EOt ooaStitUt@
8a lalsr~Oah8at of the rl&tr an6 powers of ths ooxpo~atloa ai-
twdad by $UbdlVl8i0a 47 0t hrtielr 1302, aqira.
2910 148t 80nt0ao8 or 8oM1v18108 (a), rssdlaur
“SO lOIt 88 rS# pXO&?OTt~ OtthiS WHpOP8tiOAiS
mogplbard bl a rort&a$o or do04 oi trurt inllzcwd
by tho Federal @USa &XdSSiWSr lo 8hdL la-
88@0 in a0 bUSin~88 other thUI t& OOWtPUOtiOlb
end opwatioa of 8 war 8owlJM Proj88t PQ ProJ*st8*'
IS 8000?6&@~ aaawsr roar qrurtionr 1, 2 and 3 W
giving ow approval to the p-D080 818U8o I8 Wltt*a*
370
.
Eonomblr bldnsy bktma, Pa50 6
YOU StrtS that tho 002 r8tiW Uu&ht W b8 tSSmS6
18 80 &SW (ifhpit81 8 oak Oi $29 r j8.00 Md IS $0 bo fU\rrtha
tinaaosd by lorns of b%00,000&O trw brnkr Wloh 1-s mro
to IN lnaured by th4 Yuloral 1Jou8laghadd8tP8ttOiI.
'low quertloar 4 aa6 i 6081 VlCh the pow? 02 Sk4
f8dwrl K0mw Admlalstratloa to ora 8$o4k Fa 0oyporatloM OY
8 eSif~o8~1) whather or not 8u8h authority 0m or0 oam huadrrc)
(b~r~;~:,:. Of Glm38 A hrrforrrd StOOk in the prop@ord ?U&S
ws b6llrvo that the dotrrdiutlon of l
iMOt8r 88 it iilVO1V~Sl OOAStZUOtion Of tb8
(Oh* 13, at14 12 U* aa 0. A. 8OOCiOU 1701-1732
a setter the b do
toe r allttho,arltlea to gau up00
888VS0, tW t&O mpOS8 Of t&l8 OpiS~W, that
qU.SttOllhU Std
baa Stl8Wrsd ia th0 S~tirIR4ltiV~. Th4 Only ~USStlOE with tkioh
va dll oonovn ow8elve~ im rhatimr or not uadw M, P@x88
Statutes CM Rational aOwia4f h<iatratlan or thr AdaidSCr8tu
my Gm atook la l TlXSti Ooi``atiOa.
Our StatUt48 do not lrtsblish tho qUP~itiO6tiOkNJOt
StOOkhOb!AP8. no r&W and OZ+pSOib~ of any mo wCOlubsorib6
iOr atook in l T*raS Ooi~CWatiOili8 ~0VUa.d r y th6 g6MWti I’U1*8
of the Law ot Contrrota, 10 TSX, J\rrr 699, A!.~Sbin ve StrOa6 1
3. ;r.(26 $72, 3 8, W. (2d) 225. ti dn6w6r to your ~tiSStiOfl@
La afar as the ~axar Statot68 6r6 ooaoernrd th0 ?sder.al
~Ot%&diidlIi8tr8t~OII Or the Administrator aa) 9Wl :toek bl
Texas oorporstlon8. 8Wil.l~ 88 lKMlJWW~d,it iOllOU8 t&t it oall
be parahased In the a6.m of a '&xist6@. 8 80ura6~ th8 rS~tiOlb=
ship of t ha tiUSt.0 with the priaaips~ vtOc;lUbe gOVOrUd bt the
rule4 ot ideaoy, 10 ‘TaxI Tur. 699.
~.'h~V~ OUStt& QXMiMd ths ~i7Vi81ORS Of
psrsgrspb 7 of the ahikrt&, to0 18a&thy to h8re 848 aU*, and
crlthougbjwrf Of the prOViSiona 8?e SllOh88 BrO USUti1r WA-
trolls6 br the bylsws, ~9 Cid no rt@tutry prohlbitMa la%rus
ineop orat- thw $a t&o dharterr\,.Ye60 not bali6t6 thor 6OUld
bo hS& tOr36lSW &?tt814 132?# % & cs a* rea4ti8
*Tbr ttlr8Otws &haU &a*0 UlO ESmit61 HIM$*
pleptor the attelrr of tha OOP ratios, sad w Qlr
pQ80 Or Oh4 rBSidU4 Of t&s WP r kl 8twk at 6 blao
r``&~lng tumubrorib~, in 8ueh aatlaer a8 tb03 r-18-
5ay preso*llH.:
&dor #aah p~4ViSiOM tk8 dirrOtOP8 UI) W8t.d with th* I-*-l
wEm6jit of th0 OO?pOt0tlOn wlthln oleerly urtine~ boounhr9
371
, .I -
Honorable 81dne~ Latham, Peg. 7
Thoro ia no unrubsorlbed Cn ital Stook in tho lartmt omo.
wo rooordlngly 8aaw8r your Bth paastioa la the nogatlvr.
In aa8wor to your 7th quoatloa, wo bolioro it to
bo your dut to oxaaiao iato all proririona ooatainod in l
OhMtOP 8pJ'3tO8titUlt0 dOt8rSfmO rhrth8r OF IlOtw p?Ot181On8
theroia are PO uga8at to tho 1~8 of th8 Stat.. If IQIIIO pro-
tlrloa rhoala g 0 hOT8dtOr hold ill8881 the ohartor r0uia not
aooorrarlly bo void, but only that portion hold 1110681 would
hare a8 foroo. Bt8aOkO 1e %ttlQ&O, 175 S. W. &b.
a0 bolleto tho ohmtor 8pplioatloa 8hOUid bo
appromd aa ttlad.
wo rorpoottully rotuma tho lpplloatlaa ?or ohartrr.
LArfo