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OFFICE OF THE ATTORNEY GEN&?AL OF **TEXAS** AUSTIN

**mall t**  mad.8RonoxebleCharles E. Baughma,

that attar obtain’8

a9 Bond for torm Widilkg Aia&st 2otli, of a olelm a rerult of en agremat or **doal,**

ther8uadorIs not 8tutejd uatll page 2

after August ZOthi and a settlammt of tlm olalm ln made, **WOUIU tint**  **reduce the**  **liability of**  the Bonding Ccnpans 00 tie haul provided ior through the atteohiq of a cntlfloate OaPrpingthe ~~ooisionaset out herein.
***In** tins would the Deprbaont **be justified**  **in** aoaept- **&.tg**th8 aortifiCati8 bearing **kkHh ’**  **13hit6tiO~ 8tated**  hOr8in.T
The legisletlon

with rbieh we are primarily concerned in answeringthe various questionspro **Aotn** of **tl18** 45th Le~alature (Artlolaii ouudsd lo Houeo BQl X0&99, **fib,** Varnoa*r Civil 8tr **ttIbW), ~OU88** **Btil EO.**  **557,** A028 **Of** bbs 45th **L@titUrO (Artitie**  1287.1,Vernon'sCivil Statuteu), tid timate **bill** So. 24, Aok of the 45th Legielattzzs, 18t 0.6. (Article1287-2,Vemon*e C1~i.l Statutes). *

On aooqoat of the llea@ih of the Aetazre~

ahall sot **bat** me out in tall, ,batshall attempt to &to the substanaothereof a8 la prtln&xt to 

### thematters la qaeotlonheso.‘
**Art1018 II&**  **prcrriaea @Lat**  **0110** *hall not be a &ii3.# ia sittru fruits qnless .hs applies to the Oaamlsaiamr of'AgL\ibultas for license a@ moh,~reoalvrs mmh Ueenm, a&¶ 

### film llaQ .lmrapproveda'five Thowend Dollar bond roqulredby the A&' ibis bond, ooodltione% an rsqulred by law, guaranteeathe payment by the dealer of fruft puTohaeedQII or&t, t?ndekr

the Berma ot' tha lew aad th8 bond anyone deelfng 'wltb suoh'Ueeune% dealer my maintain aotion on snme~. 

### Article1287-loonta5.m**aub&aw** tlally the sama prorlalo~~s, k8 ertlawitto sattera~hrse~lnmlveAt emsept t&t said ertlcls 26 l pp! Soable to U+lore In vqpt8blu. titicla 1287-2 prwldss t&u anp,perma who oomes withlg w of the olaaaUloatlons set **out** in both iirtldle lleb and AHl6l.a 12d7-1:lionarable CharlesP. Rsu@man, page 3

faithfulportonnanoeunder both Of said Aata shall **be** '! liabls **ror** only one **lioe~e** fee **or !nVoIIty-iit8**  ($25.00).’ Dollars,and his llaense ahall raflsat as tact that he ie lloenasd **thereby to**  handle both oltrua frutts and V8&+tabl8&"
After oarcrful

examinationof the oartlflaste aa **quott@** in your lettar,we mmatxue the language to mean that thr algi,nal bond and the renewal thereor ahall be oonsldoredas one oontiausd obligation

under whlah the bondfag aompany Is liablefor **%sfa~l.oa** tione.ocourbing

durin& the tam of tie bond and the renswalperiod onl$ up to ths limit of tho Uablllty set forth in the lea6 of the bond, and that the liability of t&he bonbisg aolapany

shall ti&t

be in adUltion to the orlg$nalbcpnd. In othm woTd8, th8 aggre@&te af :liablllt~ea

wkicih tight obtain uadtpr &ha bond axpirw'wudt 20, 19l,2,.an%

thp axtsnda%bond &plrlag August 20, 1913, oannoa.qaead $5rocxwo~
Ths obrioas aifieot of tha provision in the renewal o&$lfloata, wari It taXId, would be~$o lIu&t the llabilltyof ~Tihhs bonding uoqmny to an 9xtmt not ruthorlaad ~bptho atatutaa. -..,The statute6p6rt$.uen~ to this quea+Wn apwl~mlly state bhat ;%&I lla~~o,Isau8~ Ir~aooprdawe wlth their pre'+Idau ahallA8~ In foraa **and** W.eat for a" arlod's~onb am yaar,~('krtlala llSb, Ssetlon 6 **and** ScMlon l!t; irbIoX,s

12874, metion L) And llka**d88, .ilI**  the **OQidOn Of**  **tbia** ~8~rbMUlt, the89 **8t8tUtW OC<=-**  Blat8 that 8 band tif.$5,@0.008haU be In affootdurl.nlt tha afreatlva may **be** bl& srlod of $he llaimaa au **Iaaitied,** and not 6 bond whIah

.

sued dth Uabllltlaa arlaing **wda** a prior pnrlod. Wader the wording of the catantlon~aartIfloate here uudst oouaIdsratIOn If llablllty obttilaod **tmdar** th8 band ln en anmat of #g,OOO.bO ths rirst year 'and not diaooraed until the aso~d y&r, thul,thqughthe dealer hd pa+3 tihspreaitlsior the mooad year* hia or8dlbwa wauld hats ao **priitootion** for the SaOCnU year under the bond far tha raaaaqthat the penalty of the band would be **eOi8plot8~** exbsiuated by,SIabllItiirarIsIng under the band for the fIrat year. ifi l;ab&the 31 such a&se t&* l &nd pear prcsmiun would be dealerior JW pob~&bI6rt**a&atw8r** to those nich whm Public latereat,ap'wall be tha atotutoo thssnualraas aec3wsaw~y da&&d 8 **bond fre$l**  **.br a,?**  **8U6h** llmi$ati?na. Y !l!hsra are obher &aaoa$, we think, * the eertlfloate bearlngtlm attemptadll&atIon ~ahm0.d not **be** aaseptad. **A** ftmUamen&l rule'

to bs appltlsd

~Zn~detemal&Iag

the,ralldAty

of prwIalaa8 oi statutory

bond8 as the bond herb Qader oowIdsratIon le to .asoortaIn

the prorfalanaart

the ~t~$upfr

ox statutesprereorlbIn$ the oolldftlona

of thsbor$. Xi the atstute or statateaUo not psrmit the llmitatfonaaq@ht to be ;asds a part of the b+d, theaHoaorablaCharlwE.Baa@hawx, pass 4

. nwh 1ImItatIoaa la,are not authorltedare mid. The uamo or Globe IpdaanIty4ampaayv. Barnsr, 288 8.W. 121, use on. In rpfiloh the plaintiff8ought to hold a surety upoi,a publio aontraotm*s statutorybond liable for the ,porabaee prloa of DIatOI'i41

ftWSIlQhQ&

th@ aontraetaa:

v&m-i the obligatloaeof the band ekpeaifiot&ll~QXQII&VtQdtha rtrret~ fro= suoh liablllt~. The ComIssIon of Appealuheld in that sass tbat It was m#aIisat that the bond was lntardmlas a caapllanoe dth the #&atute and that the obligatlona l@osed by the statute would be read into th4 bond. a that 4~0, fod#?3 Otti9 spQ0r, 6p4&1& rOr the fksc&sfC%, s&St

"'Far minor purpose to lfplit that llabllrty Irk rsplyplant to t&e major purpose to ossout~ the bud 60 a8 to 4nab.l.Q

the eontraotor to prooOe6. Tha attamhd UmItatlon 1s In riolatloa

## or the statute. and tharerore void. 'rhe

atatute

will be **road** Into the bond aa thou@& 'itsterms had been striatlp oomgliedw~C]S.~[aqpheplaours) Slmo It Ia.our opiulon that tha attwsptedUmitatIon in the eXt6miW OU&‘tifl~Wt4 here under Oadde?StiOn is l%O% aathorlzsdor pel¶&tQd by rtatiute
or this dspartmmt that srras~la t it 3.6 the 

## rwth4r OpIaIon 10 d, and ror the89 rea8eru

~ thQ 0awls~1elwr or Agrlaultur* rou.l&

**not be**  $l*tIfi@8In aooeptlngma4.
Yours vary truly &%RliBY GmRAL OF '&KM3

ltuP:co

h?TItWB)~AaC 10, 1942 (Eiitgked)

GZ?ALD c. l,rnmJ hTTOQ?ET OlOlneRAL OF TEXAS