OFFICE 

GROVER SELLERS 

ITTORNLI QLNLRAL 

OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

,-.--.. 

i 

iiononblo If. A. tutlron, Comlrrlonor, ‘-‘-;-., 

..tota ~partlmL.t ot Ballkln4 L 

--. _ 

AuCtlC, T8xa8 

dear Hr. Jamirons 

38 I Authori 

8nd loan a08 

Your reguo8t for an o-$nix 

a5ovia subJoot-mttar i8 a8 f 

G. I. aila 0 

vhrthw or o 

out in the A 

our state la 

~8 tt,erurorc l purt 

thet both the .ret arid 

8 &i tdWYJ&AiA~ 8R to rhothor Or 

($8 aud.lort aeaoalbtlon8 raag lawrstersns under the plan outl.inad 

that aa an8urjj to our inquiry all1 

inVOlT l OOn8id6ntiOA Of .WtiOh8 4, 7 md prhaye 

xtlolu 11 ot Chapter V ot tau %rs8 !.%nki~ COda 

and rill lnvolre ieotlon 38 of the 3uildIce 8nd :.oan 

LaW8r 

-%e em onolosi~ her~vlth a oo:g of tho bar- 

?OOOILWl'8 iioedjurtwnt AOt Ot 19w( tO&@thSr Ritti 6 

6op.v of the SOgillStiXi8 ~rmul@itib under tba ..Ot, 88 

laede l ~all~blo thtou~.h t&c orrfoa of tha 'imturen8 .A%- 

alclatratix.. 
! 
eontum per annui an6 Sk811 b0 

i&i 

oblr in tull hi not 

more then twenty yeare T&r A rtrator 18 authprixed ana diroctcrd tO@Wanton 1O8ll8 t0 T6kZWl8 8Uby 

J00t by ttu :a-~ririonnr or tail8 tit& 00 wp0r06 appllc a t&MM 66tb o jWr 8OtiM r, i, l 8sOObliOti8, 8nd OOPI 

porntim an&to ~orbrnanta~ rgenoler aa& oarpvratlm8, 

l 1th.r utate or Yedord. 

39Jxcwa ox cot~t;~TIu8 GY HSf% 

Y&o. 501. (a) Aay rpgI.laatlon tatabe by a ratomn 

URdU th in5 titi.@ tOr th b & M ?@ Av Of l GUI tp b U M b 6 

ta &UilWh88l45 I’b8idbJitial i&'O~rty O? iJ3 OOMtl-UOt~ 

a duttulng OA unlaprorbd property omod by him to bc 

Obou&ud 88 tJ8 hoan 8I.y be 8JQWOV04. by the A&dd8treWrotVokruu'/;tt8ir8 itho flIla8- 

l (~)thtth8~rO80~Ot8adh~M8r~bo 

a8bdtO? Wi!witfO? ruohpro&m'ty t0 :~a jW'Oha804 

Or OOR8tI'UOkd by bhr ?OkW#’ 

“(2) that the aoa 

-qullrd in 8W 

mMt or t&48 

@O,tbara $WOper m tiOIl to th0 VhWUl'8 gFb6- 

aat end mtiolp8hd Lnoucw rnb l xpu18er; and thet 

thb Adtut. aad OaxaditioA @t thbs progltty 18 8U0h 

88 t0 k rtitabh for hubI6 -8; M4 

“(3) that the purohaas prloe pld or t0 b6 

paid b-~ thb votuaa t0r ru0h yr0 a?ty or tie con8tNCt i OR bOoSt, iJLOhd&. thb va P W Or 8hb IA&iprOrs& tit, do.8 not bleed th. roaaoasbh liOXi2d 

rrlur thorooi 88 dotoraiao6 by propor rpp&liul. 

w(b) ay 'a~piioatbn tor the guerantJ ai u loan UCdar thti scotlon t0F the purposcr ot niakla6 ~wepairr alterntlxia, or baprovom2nts in ,orp3yl.ng6e2L?+en& Lo- 

“(2) that0uahproportywlllboWulln 

and rewoaebly moomary for tho l ffloiont end 

auoo*rerul plrrult of otmh oeoupatioa; 

‘(3) that the rblllty aad oxporbao~ of the 

roter~, and the eoadltlaar m&r rhloh ho 

pz: 

aos to pumue weh ooaupotlon a~ moh 

are l,r reoaoMblolikald~t& all6 

Jr 

ba ruoaoutul b tha jurmlt of ruah oodhpetion~ 

“ART. b., 

Ho l ta tm 

ma1 r r ta ti or 

b y F eel ta to 

“Ho otato bank a&f1 

pomtlan to beoom lndot)rr r 

IpIpIt any porooa or mooror in 4 otarr vaf I bk 

to it ln a n ammnt In l XQ*AO of t#ntpflr* par mat 

I ) 

255 or it4 orglt4 end wrtliUd rurph8. Tho gtmme 

indebted or ln l 4 other rap liable’ ohdl be 00mm0a 

to lziolude liability rher or othwslror The l boro 

llmit&iOA S&Ill IIOt t0 the ~O~CJV&U CdUIWO Of 

lnd6btsdnoor or llab 
“1. LieblllW 08 oaWroor or tar of m 

nrohlorbuo&eopoporuBaouo 

to the beak by $ho @oUta& m Wad %t?!f?iqqldltlnt4a~wuraoof&". 

.2. Xadmb~dm.8 l vl6ooo ed by bIlla of axoh or & r ef4 mm ta e& fil oa tt ullo y x lr tln r eg lu83 or 

. roeun4 b y l Lion upan wdo in tmnoll ri%h ahip 

p$dzdor bill8 o f tcl t4 a r ooapereblo lnrtmaontr 

. 

boadod wamhouoer & l lrratom ulth rrllmhow or l lov8b-e moai tf rttaohod, uhoa the ~eluo al the aoourlty la not P 888 then one hundnd tuaa -fir0 par oont 

&~~.l~of the irdabkdsumm end ‘a b&m hburoat 

la 8dbqurm.y b8pna kgakrrt 10011, rlth ia- 

•U~MOI p~~i0i08 or 00rtifi08t00 0r iru~p08 8tt8~.b 

od. 

6. Bond8 aad M&w b&aLLy l rsakd ewual obll- 

~tloae of tho 3tete or Tatro or or My oauety, dty, 

awlolpmUty er polftla8l mub4Svlefon UurreU l a6 iabrbtadm8r Or t&a Wtod Z-tot.8 OS &wrio~ the Z@or~- 

8tnwtlan llaanoo corpemtloa or oblur trul~n~llfj 

or l geaay of the lirrltiod ~teit.0~ Govexem8xht. 

"7. my portian of an indrbt&noar clhiah t&w 

wtba steter Cotomaeat, tie Reooaotrwtloa PlaaEee 

corporatl3n or 8~ ot&r l 

T 

or inrWnt& 

or 6h0 unitba ft8t00 aotow her rm8mdltlo~ XY 

ewobto purohaw or ha* uneondltioa8~4Paraatm4 

88 60 p8y8loot or both prirmlprl an.4 latorort." 
vw%wnt vhleh suoh but sowl4 lllJu nn 10 0 rrtl4rrsaauoMlhl¶k urbtM'ultkyof8 olp"loM 

or larrsbsnt shall a04 wwma8a 8 tittloa OS 

any $anrl pwisiea OS th4 Mmlt*s of us SIta** 
. 

Tlwro i, also inoorporrtad in this seation a prorlslori 

as follws: 

“d? 

wt sdrln6 whetha the rdanl savinga and 

fRon ass&la uas &mist&d la this strk &VO bw2103.0ma 

WMih ponr w a?& tU80 luws. 

the a 

tlrlos, l *thorlr~ lar~staeats u .a 

Le&s !i 

rovFo$?Z%k E c uwlwlo r nr8w , l aaabe y th0 4 8th 

turn l t ltc ngtilar waolea~ .olo are unwluing haeru, 

to hold thbt this la 8 mAid pM&l3nnr xc is In vi&tiion or 

lirtib II 0r th Cofditution, La the it SOW~~~U~W UI 0rf0rt 

ix= 

tha puP0 or the k 

v 

slmture to debgak to the BaclnJq colw 

srluMr--e mAher OS ho s%eootln d8l%utmat of the Oorornam--a kBgbl.st11. tun0t1on. 
~onerablo Ii. A. Juleon 0 pago 11 

Wha t l wuntm to 8n unwarranted delegatiaa of legl~~lag~wmwym ham been the cubjsot ai fr eq uent aonsider8tion by 

. Panama Refining Co. v . Ily8n (U-8.) 79 L8w Ed. 446, 

16 a leading osme upon the question. It III tbero uldr 

g60r also, from the begInnIng of tbe Qovernmemt, the Congresm b8s aonierred upon ueoutlre 

ottiaer8 the pousr to uke regulatioam, -- 'not 

tar the QOTerltment Of their dOp8rtWUtm, but for 

8dm~nimtering tbe laws whlah did goram~' United 

State T. Qrhaud, 220 0. S. 606, 5171 66 L8W Ed. 

sea, 557; 81 8. c. 4309 &ah regU’l8tiODlS bboen, 

indeed, binding rulem of aOnduat, but they 8re 

valid only am oubordin8to rulea 8nd rhea found to 

be within the tramwor& of the 

Aa to the tr8ammrtrtion ot oil produatlon in em008s Ot State pi~rI!dmsibn, the ~Oi~~x’e#~ && dOal8red no polla~, m 

iiikirno 111 e. 

jatablfsbed no #ud8rd, -aid 

-- -iTbore lo no reaii&memt, no GXiTZoa 

of airauu 8noe~ unctions in rhfah3& tnmjZrtatloa fi & & 8llowM z pr3iiSTGZ. - 

Ohlei JUstiaO AlOX8nder h88 s8idl 

=It is 8 We~l-O~t8b~iShed @nOiple Of aOllStitutlon81 18T th8t 8ny at8tute or ordiinmae regul8ting the aonduot of 8 18rful businemm or industry 

8nd oathorislngr the ma!Itlng or ritbholdlng of 

liaenrea or aerinlts 80 the desianatsd OffiOi811B 

rrbitrarily ahoose, without met&r forth a 

,%??lliaenses 8nd those not so entitled, 

unoonstitution81 and Void." - nailrord Commissioa 

T. 8hOll Oil CO., 161 6. w. (2) 1022. (ibRph8sffJ OUre) 

Chief Juetiae Phillips h8s uld: 

"A further rlae in the erdinanae ie that even 

with the neaeuary aonwmt of the property owners 

. 

. 

.