### 625.

OFFICE OF THE ATTORNEY GENERAL. OF TEXAS **AUSTlN**

licixorable

Villlau~

J. Lavson seore* OS 8lxbt.e Au&~ Tesas **Attentionr** Hr. Frank D:Wear **Dear slrt**  opinionNo. O-3937 Re: Do any 0f the lmit~ents OS R6llen's lfational

Club oonetl**tute a**  **lwourity vsthltl**  **the** meaning o? the Seouritiee hot? **..Yonr ‘** **iettei requesting**  **the opinicb**  **of this**  **department** on the 8bo~e stated queatim reada in part OS rollovst .

i. "It‘hsabeen 08uOd to the attentionor this Dement thit one Hellen of Hoaston, lexasb is OpeI'8ting.in

Eoueton vhat is lmolfn 88 a &lro-ten eh83.u under the name of'

Eellent 'Rational

Club. '2he plan opersteemnething llke the old ahainletter raoket exoept that it ia operatdd thron#h the-eals of siembershlpe tiEellen's RationdWub **rather** that& tprough a oh4.n **letteri A**  olub Is rormed, ror example, ln Houston,vlth ten~char- 'tef~membere. Rach chartermember eel18memberships to two other.peoplei **eaoh** of the86 tvo other people sell memberships to two more] eaoh of these two eellmembertipe to tvo mom, eta. 'The nsmea **are** added t6 the lietAn the same **way** ae in the 0halIl

letter **raoket.** Out od esoh mem@erahip fee of 41.00, 506 goes to the Cltib or promoter etnd 504 goes to the mad vhoae name ir on the top of the lirt. "Under the plan a8 nap in we ii the ohain la rmbroken and If eaah **member** eel18 to tvo more members the number one nmn oti the list at the time of theE6?+or6blq

Yilll~m J. Y,,a~86n, page 2

tenth progr688lon

vould reoelve **504 from**  

### eaoh **or** the 1,024

### member8

who would then be 6n the list, **or** an amount of-

4512.



### ‘~II **eOIIMOtiOII vith**  **th0 OptIMtiOI8**  **Or 8Wh**  plan H6ll6n*8 Olub we8 6 pr6limlnaq applf6atlon, oopy **or** whl6h 18 8abnitted herewlthjordia6ryr6- 06ipt, OOm Or vhbh i8 iik6Wi8edUUitt@d, bid 8poluOi!'8

OC~R~BB~COI

Oreditvouoher,ldliah,6Iitltl68 t)y&uenb~ top of the li8t to hi8 50+ iror 66oh

. A OO~ 0r thin ln8tnrment18 d80 6n61086d. We Dl8trlotAttorPej 0r li827b Ootmty h88 re8-

- quested an opinion fron thla Department 88 

### to vhether - any or 

### there lmstrum6nts oon8tltute8 866tuey vithh the meaning 0r the Secmrltles **Aot** for the purpo80 0r mlbmlttlng to the grand juryl o cmp~lnt &sgalEt Bellen for 86ulXQJueourltle8 vlthout 5 1106Ik86~' fh8 preliminary

applloatlon **blank,** ordimry rooelpt, 6#&8p6n80rf8 oomml88lon oredlt vou6h6ru88d by.th8 Eellen~8~Ha-, tl6nal Qub, photo8tatlooopler 0r rlri6h ar8 attaahed to your aiqta7 m a8 r0uw8t ‘PRRLnmmY APPxmATI0H

_ "Qsatl6menr Hourton, Texa6

.'Ih6r6With&e 6pplloatian to b6'6dmlttedto the ~e~elln'8

#atlonaf Club, and if aoo6$t6dagr66 to 6blde W it8 by-lav8 and rul08.~ Plea80 rind uwunt of piian du8 on m8mbemhlp drive pl6n. Same Qddrera R88ld6nO6 "Oohtpation "Signed 456-W

(R-6 f.Xi

m **D-l-3-N ”** BonorableHilllam J. Layson, **Page** f

%maton, 96X$8, **jhly.16,** 

### 1941 "Reo6lved0r RDWARDBURRHRR 2412 U6ntvorth Dollars

Rl!z&Ri'S

RATIOHAL

SPiNSOR'SOOXSSSIOR ORlWT VOUOHRR **131**

Veo8tlanuwh Bonw Plan RmmH’S HATI- OmB 1.001 lie

Help ?iou

Wh6n ton Reed it Moat-HOW; - Total -' - #X?Eh RSScUtiV6wfi668t D88 &3ti68, fOV6i t Jpomors Cc48mi88lon OreditVowher 

### ror be!%$%r?z- #l.OO# PXQi@n688 Be **Provident** !wE: State Readquwters--Hton, Texas SAVE 3.8 the'&OWOM,'(~ sntitledto Oai+-;L

- 4 f w to be paid personallyoT brfng & Readqwrters, r0r Credit. To the Seoretary,State NmFp Dlreotor

RHTmPRIsEs Registbl'6d and ,Spon8or6dbj
&UlS -88' "molti zhi8 @6dit **VoWher** pressntsdat &mborship~Drive Re8dQ3Wt.W"-Of ROn6n'S ~tiiOnrr1 Olub e&it168 holder Of this Oredit **rouaher** to m&e applioetion

### ror **memberShip** Dev6 ?66 by pafing Sw6, signingappllaatlon- bokrg sp6auoredw a m6mb6r &tit188 holder to 

### two oredit6cumalselOn 

### vouchers

rlth **their** 

### xmme thereon Vhlahmust be used to seoure tvo nev prorpeofAve m6mbers.'

### 628

Honorable William J. Lavaon, Page 4

"The 6eourities Aot" defines the term '66aurlty" or "SeOUl'itieS a8 fO116VSl

'm t6l'm '86ClWit~' Or 'S~OtWitieS' Shl11 inolude euy ahar6, atook, treasury stook, 8toOk oertlfiOat6 under a voting tru8t agreement, collateral trwt oortifloat6, equl*ent tru8t csrtifloate, free : orgtisation 06tiiilOSt6 **or** receipt, subsarlptlon **or** 

### reorgeniration

oertifioate, note, bond, dsbfjnture, mortgage oertiiiante or OthW6Vld6&6'0f'lndebtednesa, any 

### form of 00mmerolal paper,' oertiiloate .in or 

### undera piit rhu-iog **or** partioipation agreem6nt, oertifloate or any lartrum6nt pepresentlng 8ny interest in or **under** an oil, gas or mining lease, fee 

### or title, or any oertitioato or instrument represent

### lng or 8eOurOd

by an lntePert in any or all or the - oapltal, property, asset8, profits or e-8 or 

### any o~mpany,

inveetment oontraot, or any 

### otherII+ strument uomnonly kuown as a security, whether slmllar to there herein rererredto or not. l l l "
It will be noted that the ,term 'SeOurltfor "8eo~ltl8s" . lnolude a number 0r instrument8 or things SpeOiflOtily mentioned therein and any other inrtrmnent oomonly known 88 a seourlty vhether similar to those rererred to **or** not, in the **Aat.**

**Ae** the Becuritiee **Act** mentions any other instrument commonly known as a security, we dlreot your attentlon'to some 0r the general derinitSon8 0r the uord "8eOxMties' found in Words end F+hrmes, Perm. Ed., Vol. 38, p. 469 and the following pages I '8ecurltlea ar8 generally defined aa written 

### asnurenoea

for the r6turn or repayment of money 

### or evidence of indebtedness." "3eaurlty is an evidenae' of debt 

### or of property, 

### as a bond, stock oertificate or other lnstrument, eta.; 

### a dooument giving the holder the r&at to demand and reaelve property not in hla poasesaion.'HonorableWilliam J. Lawson, page.5

"fhe t6Zm 86ouriti88in it8 broadest 86lISOembr&OeS bonds, 06~ifl~t68 Or StOOk, and other~eviden06 Of debt or Or pro 44 8. If.

906; 17 Zex. r rty.

3 2) @hayer ~8. Wathen, “Oenerell~, any r0m 0r *8trm8ibt wed ror purpose or rinrnoingend prcaPoting enterpalsos, de&lgned.rorlnYe8tment,18 8 SOOilPity vlthin Stat-

, tat6 

### authoriring

inveetigoti&s by Attorno$+'Oenerrrl 0r apparent rraud la 

### dale or **reauritles."** liebsterdefines seotiityto **be** somethingto be giVeri or dspOSitOd.tO &t&k6 Oertainthe fu.UllUent, or an obllgatlon~the observauoeor a provision ror .thepayment of **a** debt. Re ale0 says it may mean any _ evldenaeof **a** debt.. **A** oontraotwhich seourea or olearly

### asoerteina the amount Of money due on 'the ' performuce 

### of a certaia work or the fU!nlsh~ or certainmaterial is 

### a seourltyin law." "The tOEa 86ouTicy SigniiieS ~that vhloh make6 seoqe or 

### oertalni In its 

### proper use it relates to

_ peo*isry matters, and often oonb~s 0r 

### a promise 

### or right uneljtended with possessionof the thing upon whioh It repoaes.~St Implies in' its oommon aooeptatlonthat whloh prevents loss 

### or makes safer Dr. Johnson deflms It 

### as anythinggiven as a pledge or sstltion. Dean Svlft uses it as sopongmoua ulth 86fety.oroertalnty. Webster defines it as anything g&n or depOSitedto 8eoure the payment of a debt
**or** the performan 0r a oontraot,

### aft a bond ror surety, a mortgage, the endorsementof a resporislble m8n 

### or 8 pledge. It is that whloh renders 8 matter sure; an Instrument

vhioh render8 oertain the performanoe of' the aontraat."
oral !Ehe

Appellate court8 0r thie std8 have renderd soyAot.' oplnlonsconstruingoertainprovisionsor "The Se0uritles 3 33 s BOnne

Or th88e 01888 are, Atvood vs.'Btate,121 S. W. (26) Satlth vs. Fishbaok, 123 3. W. (26) 77l; Eadane va. Olark, 1 3 a. w. (26) 197; Culvervs. Cockburn,127 9. x. (26) 328; llu8e va. State, 132 3. W. (26) 596; Alken vs. State, 128 9. W.Eonomble W~lism J. Lavaon, **Pq6 6** 

**(26) US05**  **Sulta Par**  Fpvler, 148 S, **W.** (2d) 249f end **Oonser VS.**  Hnncohk, **149 8.**  **If. (2d)**  **239.** After **08l ’** **eiullJ reading**  **a686 O&SeS,**  **96 d0**  **not think**  **th& ULy**  **Or them**  **f.UVOlVeS the**  **QUOSti6Zl OOMidOl**  **’ Od**  **’ iJX**  **this OpiaioO.** 

lllter owefull~ oonoli9eriug the term “aeOur*k **or** 8wawltLes" aa dofInedby "The 8eaur:t:aa Aat' vo do pot :. think .th&t **Bny Of**  **the** above **wnti@Md inStl**  **’ U**  **’ Uellt8**  **u8&** by )' **~6~~ ‘** **8 )I&tiOti%&Ub**  **OODLI) rithb**  **the tOl**  **’ I8**  **• 86iXll**  **’ it~m**  **OC**

***se6uritler*** **es that**  **term is**  defined by ‘Tha, **Seouriticrs** Aot.’

Tr?llBtliig

that the ror6golng hlly **eu8lrer8** .yourini'

Your8 very truly ATTORRRY 0RRMU.LOFTRXAS &Qa~~ Ard8llw1ll3ah **hSSiSt&llt**