OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Honorable Sldnsj Latham 

Seoretary oi State 

Aurtin, Texar 

Dear Sir: 

You ham 

of “Parkview, Ino.’ 

lag queationrr 

ropored ohartor 

on on the followdivisions o? the 

er oonetitute a 

t upon the statutory 

the ohtar ter? 

light Of the WUlOUEi 8UbdiTHonslng Aot or other Fadoral authority7 

‘$0 If the Federal Housing Ad.&ki~tratiO~, 

as auoh, oannot own euoh stoak, oan it hold auoh 

ato& through a trustee or the Yrderal Hourlng 

Commisrionsr or Administrator? 
366 ‘ 

Honorable SIdmy Latham, Page 2 

*6. Does the oharter provide for an 

unauthorized delegation of authorltg to thr 

owner of the Clase A preiarred atook In oohtraventloo or &tiOlb 1327 or other provlsIons of 

tEe Texsr Statutaa? 

“7. 10 thsre a burden on thir Department 

to exa~inr into aatailed by law apaterlal or 40.‘1- 

tra0tua.l rights that might br Inoorporated Into 

a proporad olmrter, and if 80, wEat would be 

thr rffrot of the ap roval by t&I4 Departsent 

Of a oharter OOAtaiA P Il& dotriled 4Oatraetual provIaion that might ultIuat61y bs held llltgal? 

-6. Should the ohartrr br apprmed an4 

filed by this Department 44 bring in oomplIanoo 

with the lawr of Texae governing suoh zntters?* 

Tour oonoln4Ion4 together with faots giving rlsr 

to your Inquiry as oontalnsd in your letter are: 

“It I4 the view of’thie Dspsrtuenti that 

rsvrral of the ohartor rovlslons contravene 

the l plrlt, if not the P otter, of the ststutos 

of T&as govornlng such uatter4* and that mcb 

of t&o material In the ohartrr i4 thb 

4ubjeot matter for the bylaw4 and/or Ii 

roper 

t 4 doed - 

of trast ok other contzecta to ba sntsred Into 

by the omipany. 

%6Ctfon 2 of the oharter atat4o verbatia the 

pup060 as oxteinad In auhdivIrlon 47 ai Arti010 

1302, a. C. 3.) 

ol.Tboreted In subsso~lona (a) * 

1925 bat thir p$poy,hJ(;.rthr 

I 

we aonrtrue ths word ‘rent@ L 4ukvoObIoU 

a) ‘of motion 2 of the ohrtar and the rohd ‘loaso’ 

lg aubaeotion (b) 44 enlargemsats of the rtatatory 

parpoae as provided by subdivlaion 47 of ArtIob 

L302. $v oanstzua aubseotlon (0) of seotion 2 of 

the rharte+ as belag oontrary to tha EtatUtWy 

purpose whlah aathoriaaa suoh a OOrpOratIOn~ ‘to 

aoouclulate and money,’ but the authority to 
. 

Honoroblo SlQe~r Letho=, lU* 3 

borrw mao 

of Art1010 I 

aigbt ba proper under orotlon 7 

320, R. 0. s., 1925. #4 bonotruo 

the 18aguogo *a4 OT 011 Of tho Obf4Oto Of 188 

buolnroo~ a4 oontalnd IA oubo4obIon (0) OS 

oaotlon 2 of the ohrter l ad clhr langPa@ @ thb 

l OoW89llslIm~t of ~9 oa4 or -8 O? thO pnrpslru' 

am owUoIn6d la rubaro%ior [e) of oqotlon 2 d 

tha ohrtrr;.eo Indloating, a dual pwpom OS the 

oorpurotlon omtrary to’ the otatutso. The l p p & l* 

at oonlundo thot 011 oooh l ~&~IvIoI~ao ate Mro 

lImItotI6ao upon thm aala l tatutbr) puropoeo 4111~0% 

“TN to@al at~it81 otook io 29 858 ohor; 

:: toI%?v#* 

I value ot on4 dollar oaoh, ofoosifI4d 

PO. of Sharwq Valao 

a2488 d Prefsrred steak 

~glB3y~arr64 Stook 

“It appaaro from the affIdav%t attaohed to 

the &arteP that th8 one bun&ad ohalro 61 C24oo 

A pre~crrod 8toaL hao bean l uboorIb4d and old in 

by ‘cfiley JO&OOA a8 Truotoo for ths Ired4ra PXOuoing 

kdminiotntlon, and w4 are auvioad by Hr. ,‘obnoaa 

that thir rtocrk la to be trmoforred to tha Frbrral 

HOWin@ COQOli8OfOAO~~ Srotloa 7, oub4ItIoIono 

3P%- -, 

tOgeth4r wltb oth4r aootlono oi 

I o pter, grant brood poaro of oontrol to the 

orm4~ of the Claso A pafsrr4d #took in l m4 Inetamao 4roaedIng th4 porrrro of the diroot~8.’ 

‘X. The purpoor for whloh it IO fofa4d IO 

to ar4Ot or rrprlr ml building O? IWmta*to, 

ad to aoammlatr and lend SOAOJ for l a ld pUWOO~4, 

ad to purotuor, 0~11 end oubdlrlda PO41 PrOS’*-Y 

in towno, cltlrr and vIll4g44 and the12 rubwbr, 
368 _ 

Boaorabla Sldnsy Latham, Page 4 

not extending more than two mile8 beyond thrlr 

limits, and to aooumulatr and lend money ior 

that purpore. 

the 

% ordar.to oarry out thr purposa o? 

oor oration, 

18 the f 

a8 herolnabote ret out, it 

ntsntion of tho lnBorporator8 herein 

to prooeed a8 iollou8: 

"(a) To errata 8 prlrrtr oorporatlon 

to provide houalng ror rea8:or ~18, and 

to aoqulrr auy real wta$a or lntrra8t or 

right8 therein or appurtenant therot and 

anr aad all peroo.ual property In oonarotloa 

therrrith. 

l (b) To lmproto and operatr, and to 

8811, Oonf8J, arelgn, mortgage or 18aaa 

any real estate and any" personal property. 

.(o) To borrow aonry aad lerue rridono8 

OS lndrbt8dne88 in furthoranoe o? any m all 

oi the objeotr of its bualnrar; to 8eouro the 

aame by mortgage, dead of trust, pledge or 

other lima. 

"(a) To apply ior and obtain or oauso 

to be obtained from the Federal Housing 

Comml8sloner a oontraot or oontraotr o? 

mortgage ln8uranoe parruant to the prorl8- 

Ions o? the Rational Hourlng Act a8 amended 

ooTerlng bondr, note8 and other erldenoes o# 

indebt&lne88 188uad by thlr oorporation and 

any indenture o? Mortgage or Deed oi Trust 

reourlng the 8ame. 80 long a8 any property 

of thl8 o,mporatlon 18 enoumbered by a mOrtgage or deed or tru8t insured by the Federal 

Hourlng Uofamlm8loner it sheill engage in n3 

burlno other than the OOn8trUOtlOn and 

operation of a War Howlng Projeot or ProJeot8. 
, 

. ?..” 369 

H0n0rabl8 Sh%aO~ Lathsa, P8gr 5 

“(8) To wt8r into, porton and wrry 

OUt OOIltr88t8 Of Uy kln6 lLOO888W~ to, O? 

in oo~ootiw with, or laoidental to, the 

8ooompll8&mat of ary 0~ or ai010 of t&a 

pIW~08OS Of th8 OOR$QYSt~Ofl." 

Parapaph 2 a? the rbartor (with the OXSO $1011 

Of th8 8UbdiViSiOW thIW8Of) 18 tak80 VSPbttin fU SO i diV18lQa 

47, Ar8lol. 1302 f. Al 0. 8, 

It 8Uh8O~t~OU8 (S), (b) (8) 

an l lu g a m8upon a t thr purpose 8oa~ala8~ 

6) Ulb (8) WESt%tUtO 

a Fwagraph 2 rush 

ohartsr would be oondoaned 88 ooatalniag a010 than on8 purpose 

UfIdSt th8 authority Of RWIISO~ V. Tad, 69 S. W. 1 

v. PI88pt~lr8ior Rlocr dh Irrlgatloa Co. 82 9. X. 

5, M6 Gordon 

3. 

A omrotul ooasldetatloa Of 8UbdiVi8iOn8 (a), (b) 

(8). (d) SJd (0) load8 US t0 th* 00&8~lI810R that that UI), dth 

Oil8 exorptlu herrlnaft8r noted, but S~~hKISt0r~ Of th8 author1184 PWpOSS. I?lMPll bh. SOF~OrStiOII OOUld 60 ILlit 886 811 

thing8 smntlonsd ia Su4h 8UbdiVl8i0a0 Lf were aOt OOatainbd 

in the ShartU and henoe SuOh rnuoratsd ri t8 &a EOt ooaStitUt@ 

8a l alsr~Oah8at of the rl&tr an6 powers of ths ooxpo~atloa aitwdad by $UbdlVl8i0a 47 0t hrtielr 1302, aqira. 

2910 148t 80nt0ao8 or 8oM1v18108 (a), rssdlaur 

“SO lOIt 88 rS# pXO&?OTt~ OtthiS WHpOP8tiOAiS 

mogplbard bl a rort&a$o or do04 oi trurt inllzcwd 

by tho Federal @USa &XdSSiWSr lo 8hdL l a88@0 in a0 bUSin~88 other thUI t& OOWtPUOtiOlb 

end opwatioa of 8 war 8owlJM Proj88t PQ ProJ*st8*' 

IS 8000?6&@~ aaawsr roar qrurtionr 1, 2 and 3 W 

giving ow approval to the p-D080 818U8o I8 Wltt*a* 
370 

. 

Eonomblr bldnsy bktma, Pa50 6 

YOU StrtS that tho 002 r8tiW Uu&ht W b8 tSSmS6 

18 80 &SW (i fhpit81 8 oak Oi $29 j8.00 Md IS $0 bo fU\rrtha 

% 

r 

tinaaosd by lorns of b 00,000&O trw brnkr Wloh 1-s mro 

to IN lnaured by th4 Yuloral 1Jou8lag hadd8tP8ttOiI. 

'low quertloar 4 aa6 i 6081 VlCh the pow? 02 Sk4 

f8dwrl K0mw Admlalstratloa to ora 8$o4k Fa 0oyporatloM OY 

8 eSif~o8~1) whather or not 8u8h authority 0m or0 oam huadrrc) 

(b~r~;~:,:. Of Glm38 A hrrforrrd StOOk in the prop@ord ?U&S 

ws b6llrvo that the dotrrdiutlon of l 

iMOt8r 88 it iilVO1V~S l OOAStZUOtion Of tb8 

(Oh* 13, at14 12 U* aa 0. A. 8OOCiOU 1701-1732 

a setter toe the b do r a l l ttho,arltlea to gau up00 

888VS0, tW t&O mpOS8 Of t&l8 OpiS~W, that Std qU.SttOll hU 

baa Stl8Wrsd ia th0 S~tirIR4ltiV~. Th4 Only ~USStlOE with tkioh 

va dll oonovn ow8elve~ im rhatimr or not uadw M, P@x88 

Statutes CM Rational aOwia4f h<iatratlan or thr AdaidSCr8tu 

my Gm atook la l TlXSti Ooi~~atiOa. 

Our StatUt48 do not l rtsblish tho qUP~itiO6tiOkNJ Ot 

StOOkhOb!AP8. no r&W and OZ+pSOib~ of any 

r 

mo w CO l ubsorib6 

iOr atook in l T*raS Ooi~CWatiOil i8 ~0VUa.d y th6 g6MWti I’U1*8 

of the Law ot Contrrota, 

3. ;r. (26 

La 

10 TSX, J\rrr 699, A!.~Sbin ve StrOa6 1 

$72, 3 8, W. (2d) 225. ti dn6w6r to your ~tiSStiOfl@ 

~Ot%&diidlIi8tr8t~OII Or the Administrator aa) 9Wl :toek bl 

afar as the ~axar Statot68 6r6 ooaoernrd th0 ?sder.al 

Texas oorporstlon8. 8Wil.l~ 88 lKMlJWW~d, it iOllOU8 t&t it oall 

be parahased In the a6.m of a '&xist6@. 8 80ura6~ th8 rS~tiOlb= 

ship of t ha tiUSt.0 with the priaaips~ vtOc;lU be gOVOrUd bt the 

rule4 ot ideaoy, 10 ‘TaxI Tur. 699. 

~.'h~V~ OUStt& QXMiMd ths ~i7Vi81ORS Of 

psrsgrspb 7 of the ahikrt&, to0 18a&thy to h8re 848 aU*, and 

crlthougb jwrf Of the prOViSiona 8?e SllOh 88 BrO USUti1r WAtrolls6 br the bylsws, ~9 Cid no rt@tutry prohlbitMa l a%rus 

ineop orat- thw $a t&o dharterr\,.Ye 60 not bali6t6 thor 6OUld 

bo hS& tOr36lSW &?tt814 132?# % & cs a* rea4ti8 

*Tbr ttlr8Otws &haU &a*0 UlO ESmit61 HIM$* 

plept or the attelrr of tha OOP ratios, sad w Qlr 

pQ80 Or Oh4 rBSidU4 Of t&s WP r kl 8twk at 6 

r~~&~lng tumubrorib~, in 8ueh aatlaer a8 tb0 3 

blao 

r-18- 

5ay preso*llH.: 

&dor #aah p~4ViSiOM tk8 dirrOtOP8 UI) W8t.d with th* I-*-l 

wEm6jit of th0 OO?pOt0tlOn wlthln oleerly urtine~ boounhr9 
, .I - 371 

Honorable 81dne~ Latham, Peg. 7 

Thoro ia no unrubsorlbed Cn 

wo rooordlngly 8aaw8r your B 

ital Stook in tho lartmt omo. 

th paastioa la the nogatlvr. 

In aa8wor to your 7th quoatloa, wo bolioro it to 

bo your dut to oxaaiao iato all proririona ooatainod in l 

OhMtOP 8pJ' 3tO8titUl t0 dOt8rSfmO rhrth8r OF IlOt w p?Ot181On8 

theroia are PO uga8at to tho 1~8 of th8 Stat.. If IQIIIO protlrloa rhoala g 0 hOT8dtOr hold ill8881 the ohartor r0uia not 

aooorrarlly bo void, but only that portion hold 1110681 would 

hare a8 foroo. Bt8aOkO 1e %ttlQ&O, 175 S. W. &b. 

a0 bolleto tho ohmtor 8pplioatloa 8hOUid bo 

appromd aa ttlad. 

wo rorpoottully rotuma tho l pplloatlaa ?or ohartrr. 

LArfo