Your request for an opinion of thlr dsprtmmt ir an f4llom: 'On Haroh 30, 1938, th4 ,Utate of T4za8,, 'aotlmg w amd through it8 ~duly 4140~ t4d, qurllfisd amd aotlng Attamoy Gemoral, Ullll8m HoCrar, at th8 ,speolal in8%6YlO4 'ia Z-4QU88,* Of th4'k0ar&Of bWamo4 ,+6.d861O,I4~6 1 flJ4d oPu.8 ,&. 59,771 in &,126th M8trlot'Court of lbavi8 COunty. The p4tlt&om alleged that the d4f4mdamt,Rapnblio Umderwrit4r4, an lmt8r-iaburamw aohango, wa8,in8olr- en+, and r8qu48t4d th4 l pp4lmtm4mt,4f a r404lvir. *On th8 ,4sa4 day, a# order'wu 4nt4r4d app4imtlmg Curt18 I. Hill a8 4qar%4 Beo~lver amd J&m Atkimsom a8 Attormrg far th8 Reoeiyw.

“On ‘baocmbsr 17, 1938, a final judgp4n! -6 4akr4d, direotimg th4 lZ4o4lver and Attormsg th4WbOfor8 app4lmMd to liquidate th4 ,afhir8 of th4 Pint.

"On Maroh 24, 1941, th4 R444i~4r fil4d hi8 SUppkK&al rqort,‘qa fh8 affair8 of Oh4 R4oelvur8hip 8h4Wim& that virtually all a88ot8 had ?~44n +&uobd to oash, and that their va4 tha Q ham&for dlstribptlom the 4ua &f #23,426.66. It further 4h4w8d.that umpald prlwl~ olainu ‘q4ubhbd to abut: #6,ooO.00, Pnd that all&d geasml olaimm amourkd t4 #176,150&O.

"01 Maroh 26, 1941,'am ord8rra8 8mtorWumd8r th8 R4481?4r'8 appIicbio8 filed %h4 8M dw gramtimg him authority t0 king am a8808P8Dt 8Ui 6g6im8‘Y the maborl%4r8 of th4 defbriot flea la ord@r to raise 8uffioi4mt fumd4 to &my th4 approved olairrm, with 4xp4n848 whlohw4reto inoludo atbrm~18 fee8 of 26% and aeawmWmb~8 fee8 4f 15% of th4 grO88 reow4ny. 6uoh a ruit wa8 fil4d ly th8 Bewfv4r 48 July 30, 1941, bbimg BO . 86,362 om the'DoOk8t of th4 98th M8W'lct Cerrrf oi ‘hWd.8 COUUtye 60684, VWmom'8 R.C.S., anaot4d w th4 46th Ingi8latiro In 1959~ pro- “Arfele

vld4s a n4w pro48dur4 for llquldatiom8 of th4 84I"t her8 OOSIO8X'm4de Iji8+h4 'belIsP of the wrlt4r that th4 fllimg of th4 abam nwmtlon8d emu64 Ro. 93,369 omsjitute8 in foot a r4-opsmimg of a olrtu~~y'olO84d r4ooiv4nhlp. H4 18 further of ths opinion that 8UOh addltiomal admlnl+r&lo8 ef the affair8 of thla rsodv4rshlp a8 may bs n8488sup cam be moro 4oOmdoally oomduotod, 4md with grat4r bnefitto all oomoerm4d, if th4y are handled und4rth8 authority of Ptiole 60680.

Hon. 0. P. Lookhart, p4g4 2 (0.6910)

*Your opinion is, therefore, r88peatfUly requ48tsd a8 follorrc "1. Is there legal authority for the interv4mtlon of the Stat8 lnthi8 matt4r, r4questingthat furth4r l chainistratlor of th4affairs of th4 reoslsership of th8 Rspublio &dsrwrlt8r8 38 oollduotsd under the prwislons of Artlols 606808 Ip 40, what ar4 th4 duties Plrd powers of the Board of In8uraao4 Comlssion- “2. 4r8 In lastltutiag such rotion?"

Ilb held In our Oplmion No. O-6696 that Artiol4 60680 of th4 Rwl84d civil Statutes of TQxas,whioh appremtly requires the oourt to appoint the statutory liquidator of the Board cb Imt%rPmoO Comission4rs as r404iver for lmsolv4~ ln- oom&~3ie8, oould not In any w4mt be ratrosp8otlvs SO a4 to r4qulreth4 Nranw court to rem8 rsoelvers appointed prior to the effeotlve date of suoh statute aad appoilrt ths 8tatutory liquidator a8 receiver to complete the litigation. lh further held that duoh shatut8 vas mersly directory, and that to coastrueti 8-4 as maadatorg uponthe oourt to app4iat the 8tatutoz-y llatidator a8 reoeivsr muld r4ndsr the spme unoonstlkdiomal. We 844 no OOoaSioX to ohage or modify suoh opinion.

Rth this explanation of our prior opinion, w4 p888 to a oonaideratlon of your first question. The Stat4 of Texas is sow plaintiff la the Oa88 under aon- sideration, th4 88184 b8iSg styl4dr "The Stat4 of Tams T. Republlo ~d4nn%ten, C8u84 &.~~591771, ln the 126th Dlstriot Court," ati hen04 no lntervsntion, as that t4rm is known in law, is n40888aZ'y. The Bktcif'Tera8, as vmlla 8 say other ln- terested party, could, by proper motion, suggest to the oourt th4t the pr484nt reoeiver be rearoved and the statutory liquidator sub8tltuted thsr4for. 6uoh mo- tion, of o-84, must lm 8upporOed by 8ti oompeteat wideno4 as to the necessity and ths desirablli~ of the ohang4. 'Th4 judgd of the court, having the Fer 8nd authority to seleot and appoint r4oeiv4r8, would, If the svidenos justlfl4d and required suoh action, r-4 the pr4sent reaalver. If suohwere done, th4 oourt could thea appoint ths statutory liquidator or am other person he desires. Cloar- ly, under our abarrs mentioned opinion, he would not be r4quired to appoint your liquidator.

YOU sulmit no faots with ~rour Inquiry which would justi* thio depsetmezrt la filing a motion to hav-4 th4 prsssat receiwr raslwsd and ths statutory liquidator appointed. If you ar4 la posr48slon of faots which, In your opinion, should be made kaown to the aourt, ws ask tb8t you kindly advise In order that ws mlghtdst4wias the advisability of flllag such motioa. Yours veryt-uly

U:GO:e&‘w APPROVED SEP 19, 1941 ATTOHliEY GEREXU OFTEXAS I*/ Grover 84llers FIRST ASSISTANT /*/ Lloyd f-=‘~~ %

ATTORNEY mlmRAL Approved: Opinion Colmnittee

By B.W.B. Chalnmn