Case Information
*1 GENERAL OF TEXAS OFFICE OF THE ATTORNEY AUSTIN
Honorable 0. P. Lookhart, Chairman
Board of Ineuraace Oommi8aionere
Austin, Texas
mar Sir:
Statuter, 1925.
ahall be held
eleoted, the
of the oapital to not 1088 than a8 been fully paid e offioerr, either the 01~8 in whioh 8ueh by thlr ohapter to ints8t 8hall 188ue to ruoh oom- of authority to treiuaot 8uoh suranoe bu8lne88 W&thin thir era may apply for and a8 may tr oharter; whloh oertiiloate 8hall expire on the lut day of February next after the date o? it8 188uanoe. Before 8uoh oer- tlfioate 18 188ued, not le88 than two otfioerr of 8uch oompany 8hall exeoute end l’ile with the Coml.8sioner a sworn 8ohedule of all the a88et8 of the company exhibited to him upon 8uoh examl- nation, ehowing the v8lue thereof, together with *2 Eonorable 0. &&hart, page 2 are bona fide,
a sworn statement that the oam l&q unCondItiona1 and unenoumbered property of the oompany and are worth the rmountr stated in Such schedule. I?0 original or first oerti- float8 of authority shell be granted, except In oonformity herewith regardless of the date of filing of the artlcies of Inoorporatlon with the CommIssloner."
Your attention is dlreoted to the fact that, by ex- pl'e88 @tat&tory declaration, the cOSSSi88iOll9r8 mu8t find, a8 a aondItIon preoedent to the 188uum of a certlrioate of author- ity to do bWine88, that all Of the capital Stock Of the COOL- ya$ h88 been fully paid UP and [18] in the owtody of the offi-
, "either ill aaSh OC 8eWN'itieS Of the OlaSS In which SUOh l utmsed by this aoofezf or loan diapter to invert l
APtIcle 4725 lirtr the 'ssouritles' In whIoh a life inrul'SU10S So8@Sny this State m4y und6r %hS 3.8WS Of orgaalsed it may loan It8 funds. imeat or upon which
ArtICle 4726 prOVidea that 8UOh ln8uranae OolQNZlIeS may seoure, hold and oonve~ real property a for certain pur- olceunrtauoer. po8eiEiXun~~erta~
Of oourse, real estate aoqulred by the oarpany under the oIroum8tanCes and f&r the pu~pomr provided by Artlole 4726, Ir property whloh the aompany Is authorised to ovn, just [88] it may own personal property, Swh a8 furniture end fir- turer and office equipment and 8up~lIe8, neaersary to the tronraction of Its bwtiesr. &It 8e~Witi~S” 18 a tel7S Of more reStrioted meaning thm 'property," and Artlole 4720 ex- presrlg provider that the asrtifloate of authority l h*ll be ISSUed only if it [18] four&that the OapItal O{ the 00 Is on hand In the form of oarh or 'sOCILCitIe8 iii Wh.i%?t authorized to inveSt or lo&n it8 fund8.
q Yeouritlesn are evidenOe8 of obl.igation for the payment of mgney. See Words and Phrases, Pem. ltd., Vol. 38,
Seourlties. In no proper sen8e oan Peal property, encumber- ed or unencumbered, owned the oorporatlon be OlaaSed as a "SeOUPity* under Article 4720.
-arable 0. Lo&hart, pIge
It ?ollOvl frOE4 vhat hU b0W Said that r0 8($riW vith $he oonalwi~n expressed &8iStmt httorney ikner8lVernon Q0a 3.n thaiopInIon 0s this Department to vhIah you refer, drted Moedoer 16, 1937.
Your8 very truly RwFrdb