Untitled Texas Attorney General Opinion

641
July 16, 1947
Hon. Jesse James, Opinion
.- No.,V-307
State Treasurer;
Austin, Texas Re: Construction of Ar-
title 1524-a, V.C.Q. ,.
with respect to 1
transfers of secur-
ities and releases
thereof, deposited
with the State
Treasurer.
Dear Sir:
Your letter of request for an opinion upon
the above titled subject matter is as follows:
“In compliance with the provisions of Ar-
ticle 1524-a, one of the investment OOD-
panies has been depositing with this De-’
partment certain real estate notes. When
these notes are deposited, Transfers of
Lien are furnished this office, said.trans-
fers having first been filed.in the county
clerk's office of the county in which the
property is located. A blank form of such
transfer is enclosed herewith.
When the notes are withdrawn from this of-
fice, we execute another Transfer of Lien,
transferring ownership back to the company.
This .transferalso is enclosed.
"The question has now arisen as to whether
we are using the correct language in such
transfers, as the ones now being used pur-
port to transfer ownership by actual sale,
when as a matter of fact, the ownership is
transferred only in trust.
"To clarify this situation, we kindly request
your opinion of the following questions:
.
Hon. Jesss James - Page~2 (V-307)
“1. Are the forms furnished herewith cor-
rect, or, should the purported cash don-
sid+ration be left out and the words Iin
trust’ be added? If you have further
sugqestions to make on what the correct
forms should be, we will appreciate your
views.
“2. If the enclosed forms we not cor-
rect, should the transfers of lien now in
force on the notes now deposited be a-
mended so as to correct the error?
“3. Should the State Department of Elank-
1% approve, in writing, each Transfer of
Lien, before it is aocepted by this office?*
For convenience we shall answer your questions
in the Order in which they are stated.
\ 1. The form of transfer of the deposits con-
templatea under Artiole 1524-a of Vernon’s Civil Statutea
which acoompanies your letter Is that of an absolute oon-
veyance to the Treasurer. It makes no reference to the
statute nor does it specify that the conveyance 1s in tzu&
of any charaoter.
We think, however, the form is sufficient for
the statutory purposes mentioned. A deed, absolute In form,
;z; ;“, shown to be a conveyance in trust or mortgage. Oar-
Carter, 5 Tex. 93; Young v. Fit%s, 183 S.W. (2d)
186; Lionard vs. Smith, 186 S. W. (28) 284.
It would. not be amiss, however, to add to t&e
granting clause the words “such conve nce being in statu-
tory trust”, although this is not ind r spensable.
Your form of the conveyance by the Treasurer
to the depositor is an absolute sale upon a nominal oonsid-
iration. We think this form is sufficient for the same
reasons we have statea above in support of the transfer to
the Treasurer.
2. Since we have held the forms to be suffi-
cient , it is unnecessary to answer your question No. 2.
3. The State Treasurer should not aocept any
deposits under Article 1524-a - whether as an original or
replacement deposit - without certifioate of appr,oval by
Hon. Jesse 5 Tex. 93; Young
vs. Fitts, 183 S.tV. (2d) 186; Leonard VS. Smith,
186 S. W. (2d) 284.
2. The Treasurer should not accept any
such deposits, unless they are accompanied by
the certificate of the Banking Commissioner as
to eligibility and sufficiency for the purpose
of deposit.
Yours very truly,
ATTORNEY CENERAL OF TEXAS
BY
0S:wb !ilikke
Assistant
Encl.
APPROVED:
ATTORNEY GENERAL