# THE ATTORNEY GENERAL OF-XAS

Hon. William A. Harrison Commissioner ofInsurance 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Texas Opinion No. C- 2 Re: Whether a certain security deposit made pursuant to Art. 7.15, Texas Insurance Code, may be withdrawn even though trust obligations of the depositor are still outstanding. Dear C,ommissioner ,Harrison:

Inyour letter dated December 20, 1962, you requested the opinion ofthis office concerning the withdrawal ofadeposit 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 ofqualifying as afiduciary 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The Legislature expressly repealed Article 7. 14 and 7.15 by Senate Bill 165, Acts 55th Leg.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 ofsuch corporation to transfer and assign its fiduciary business to aState Bank or trust company--- shall expire onApril 30, 1962.” However, you enclosed with your request aletter 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 ofGuaranty Title Insurance Company and that this company has no authority to act in afiduciary capacity and is engaged in atitle 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 ofH.B. 226 the successor corporation assumed and is now charged with the fiduciary obligations ofGuaranty Title and Trust Company. Itmay be assumed that the Legislature intended afull substitution ofthe new bank and trust company byvirtue ofthe provision inH.B. 226, which states that the naming ofthe predecessor corporation inwills and other instruments shall be deemed to,be the naming ofthe successor bank or trust company.

You state that the successor corporation is aState Bank. State banks are not required to maintain adeposit 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 ofits entire trust operation to asuccessor bank company pursuant to H.B. 226, the deposit ofGuaranty Title and Trust Company was no longer required and it may nowbe withdrawn. SUMMARY The security deposit ofGuaranty Title and Trust Company made pursuant to,Article 7.15, Texas Insurance Code, may be withdrawn. Very truly yours, WAGGONER CARR Attorney General ofTexas

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



## StsntonStone,ExecutiveAssIstant WaggonerCam, AttorneyGeneral

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