THE ATTORNEY GENERAL 

OF-XAS 

Hon. William A. Harrison 

Commissioner of Insurance 

State Insurance Building 

Austin 14, Texas 

Opinion No. C- 2 

Re: Whether a certain security 

deposit made pursuant to 

Art. 7.15, Texas Insurance 

Code, may be withdrawn even 

though trust obligations of 

the depositor are still outs tanding. 

Dear C,ommissioner ,Harrison: 

In your letter dated December 20, 1962, you requested the 

opinion of this office concerning the withdrawal of a deposit made 

pursuant to Article 7. 15, Texas Insurance Code. You state that 

the State Treasurer is now holding the deposit which was made by 

Guaranty Title and Trust Company for the purpose of qualifying as 

a fiduciary under Article 7. 14, Texas Insurance Code. 

The Legislature expressly repealed Article 7. 14 and 7.15 by 

Senate Bill 165, Acts 55th Leg. R.S. 1957, ch. 388, p. 1162. 

You state that Guaranty Title and Trust Company transferred 

its entire trust operation, including all fiduciary duties and all property held in such capacity, to a corporation chartered under the Texas 

Banking Code pursuant to H. B. 226, Acts 57th Leg. R.S. 1961, ch. 125, 

p. 243. H. B. 226 provides that “the power and authority of such corporation to transfer and assign its fiduciary business to a State Bank or 

trust company--- shall expire on April 30, 1962.” However, you 

enclosed with your request a letter from the Guaranty Title and Trust 

Company, which reflects that the transfer and assignment in question 

was executed prior to such expiration date. You state that Guaranty 

Title and Trust Company has since been merged into a corporation by 

the name of Guaranty Title Insurance Company and that this company 

has no authority to act in a fiduciary capacity and is engaged in a title 

insurance business. 

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Hon. William A. Harrison, page 2 (C- 2 ) 

House Bill 226 specifically authorized corporations, such as 

Guaranty Title and Trust Company, to transfer their trust operations 

to a corporation chartered under the Texas Banking Code. By the 

terms of H. B. 226 the successor corporation assumed and is now 

charged with the fiduciary obligations of Guaranty Title and Trust 

Company. It may be assumed that the Legislature intended a full 

substitution of the new bank and trust company by virtue of the provision in H. B. 226, which states that the naming of the predecessor 

corporation in wills and other instruments shall be deemed to,be the 

naming of the successor bank or trust company. 

You state that the successor corporation is a State Bank. State 

banks are not required to maintain a deposit with any state agency in 

order to exercise fiduciary powers. Art. 342-301, V.A.C.S., and 

Art. 7425b-25L. V.A.C.S., both as amended by, S. B. 41, Acts 57th 

Leg. 1961, ch. 30, p. 44. 

Therefore, it is our opinion that upon the transfer of its entire 

trust operation to a successor bank company pursuant to H. B. 226, 

the deposit of Guaranty Title and Trust Company was no longer required 

and it may now be withdrawn. 

SUMMARY 

The security deposit of Guaranty Title and 

Trust Company made pursuant to ,Article 

7.15, Texas Insurance Code, may be withdrawn. 

Very truly yours, 

WAGGONER CARR 

Attorney General of Texas 

BY 

Dudley’ D: McCalla 

Assisiant Attorney General 

DDM:lmc 

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Hon. William A. Harrison, page 3 (C- 2 ) 

APPROVED: 

OPINION COMMITTEE: 

W. V. Geppert, Chairman 

Frank Booth 

Cecil Rotsch 

Marietta Payne 

Stsnton Stone, Executive AssIstant 

Waggoner Cam, Attorney General 

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