**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN** 

Eo(onorablr

II. A* Jamiaon, coml*' nopu-tmont of bnklng Au8tla 14, Tenr



### Tour 1d.t.rOSX8 or thlr 

### d8p8rtm8ntr8lprdl r0ii0wOI
ing **8nd** Loan l 

### oooaalonswith the omditlon

l 7, 1945 thm tku fioak**ad** to **you** thr otl~lnal H Whloh 888 8nd 18 th8 b8818 rOr OtU **M** iA8OLVUt **OOaditlon, 8lOw**  with A.8 that **rahtod** to th8 rub)eot m8tt.r. ph Of OUT tlWWAitt81. 18tt8r 8t8t8d:
f8 thUOrOr8 tr8n8mittl~ to no0 **gW8UWIt t0**  tb **QrOV18iOKi8 Of**  **i3*8-** :;O. 1s Of **th8** uW8 Of 'hX88 **Rirl8tirP(** to B'~ilding

8md **h8A M8OOi8tic** 

**“ i** **’** 8?ll88 -8 h8VO d8t8Eaii8d tbt **8Ubj8Ot 888OC**  **8tiOn i8**  **8O&UOt 18%**  **it8 bU8i8888**  

### 8Otlt?8-**t0 hW,**  18 f81110& t0 Omply 81th th. l&r, **it8 U88t8**  **8r8 1880**  **th8li** it8 **li8bilitf8. -**  lnoludlu 811 

### it8c8pita1 **ItOOk -**  **8nd** lr crnduotlag ltr burinorr In **80. Utn88?8**  **Ed** un8uthoriz8d **Oal%aLlr.** It **18 OtiC**  definite oiinion that prompt 8t8pr a!-oold**b8 tsk8n**  **to** brIn:-8bout the **rOVOC8tlCll Of**  thlm 888OaiBtiO0'8 **right t0**  **do** bu8bl888 **8n4** tt8 **8P-**

### uoaonblo 8.A. **Ju.aoa,** 

### ~6. a

pointmoat of l 

### rooolro? thonof to? th0 

### purpow l swimu~upl~ l



### tiura.'

7?. mpm WW d~iaOm tbt at 8 O~f8?0,#0 with Mr. Bu8ot OB alay aB Lo ruggoot8d t&t tko BMk

### la@ Cori8oimot 8hoaM kko twa r~iilr #top8 a8 ret out **bolawr**

‘(1) bpO8iiiUuy ?OpWOt th AttO?MR -8-1 to do t-0 thing w 

### lob will brlu **about** 

### th8 ?8vOOatlOal



### $ tho

### A8ooO~tioa*B right t0 (0 

### burlaorr 8ti th8 appOinti& Oi 8 ?OOdV8? th8?8Oi fO? th8 gU?pO80 Of WAIL&@ UQ iti 8?f8i?&

**=(a) ?hro\lgh**  l**l** offiOi81 **88t** l **i8Ul** 

### th8AI**8OOi8tiOn'8** p?dt t0 

### do buOlaoo8 fa h=O.

*Ia 

### rlw of th8 i8ot tbt thuo 

### rugg88tioM Ubr808 8 prooodurowhich ha8 not boon follorod

### In ?OOpOOt t0 ?iO? 8lt&WtlOm Ot 8 **8upU8bl8 B8tUn**  W8 r:.Otid 1E 8 **t0** ?808iV@ JOU? Oi?bid O@liOll to th8 8??#t tmt it IO OU? dUt7 ia the p?Ui888 t0 do tho#o thh@ l -8?8t.a 

### above.

-EiU4O?OZ8, undo? 8dviO8 Of O??iOO COuIuOi, 

### WO h8VOp?8Ouol8d

th8tthe juri8diOtioo l ? th8 Colmb81OnO? **008000** UpOA th8 **?.18tiOC O?**  **8 mtk?**  

### t0 **thC** AttO?ur O0n8r81, 

### whioh p?UwQtiOa ha8 88br808d 

### tho thOUght t&t t&8 Or?iO8 Or t&O ALtO?MY aa~8-1 8itOr 8ami~g a11 th8 ?88t8 WOUid UOO it8 010 u8e?OtiO8 80 t0 tho **8dVi88bilitJ** Of **iMsitUtio(** b&81 ~?00806- lw. 

### In Oth8? 

### words,it h88 bran 

### our aoariotlo8 th8t it Im Out duty tW?d8tO 8 l ltU8tiOn t0 the Attoraoy GUeX81 8nd t0 88t Out thonla tho b88io Of OU? ~i8W8 ?O?WMoh ?888- th0 h8t @OntOM O? th0 e?u&?qh **in OU?**  **18ttO? Ot**  d8tO **DCC8mbOr** 7, 1913 qUOt& 8boto 

### l Xp?O880d **OU? dOiiCit0**  **Opinion 80**  **tC Wh8t**  **8hOUid** b8 **dOnO,** but pCh8pO th8 

### l rp?088iOn do00 fill 8hO?t Of 8 ?8QU88t.



### ‘A* to the **88co5d** rstarrno8 

### we war0 

### of tho 

### oplaionat tho tlw rho lottor of d8to moatlonodwno t?oa8- 8ittO& 

### t0 YOU tbt th8 

### 8albLll1145 Of **thB** peldt t0 d0 

### bwlaro ud roroo8tIom o? the ASOOohtiOa’8 ati?tO? 

### would ?8qui?ol



### o~.rt **8Otioa,** 

### OU?Vi.WO la thi8 ?88QOOt **bvin( bean**  8aqyrod **??OB 8**  **?88di5g Of**  **ta0 Rot00**  **Of** 

### Doolalono, under Artlolo fU3la-15,**Vo?n0ri*8** **Anootatd i.iooO?8bl8**  8. **A.** Julooa, &W&8 a



### ~xaa statotu, 

### wnloh rofonnoo la marollart

lëSUtUtO.8PthO?iSb# w l- 

### 8laaloaarto 

### maul l 

### ortltluto as nutheritr 

### orbuildlryaad laa8

### l aaaoiatio8, with 

### prorlalon llxlry tauo or “a4 actloa,w **hold** to **authorlao** 

### oaamioolo~r~o amulmut 0s pu8it 0glt by 00u-t l otba. 8bnw 1. Lou s.‘“?I&i&l&!. & tw h88.a (CiTr A;.P.) bo 8.

. .

%a tho 8UbjOOt Of 8~U111lU3 the ABO0@iatioa*O pemlt to do **buoinooo it**  -8 au? 

### tho % t th8t WO h8(. 9erh898 **gOa 80**  **?8? 80**  **OU? 8Ut&?itr**  th0 p?d888 pOmltt8d la **our letter**  of d8tO Juae m4, 1945, 8 COpf OS whloh lo l

noloood. 

### YOU will 

### note the m opocltlaally **8dTiOOd** tho Board 0; Dlrooton of tho **A88Oai8tion** t&t **‘ the**  Oondition **Ot** 

### tho **888OOhtiofJ i0**  l uoh **that 80**  dirooto?, Of?fC8?, aplOy O? 881OOYa 8hoU1d 8OCOgt 8w mOMT f?O8 aw 8CU?OO 88 W-Oat Ofl 8hU?U O? 

### 8Jmro **8000WtO.'**

*X0 trust, 

### therororo tht you 088 hror 118 with **YOU?** OpitliOn011tho **8&80t Htt8r,**  **8iOOO it**  will b8 of ralur **not** only in **thm** in8tmt C880, **but** will prorldo dir8otion to **thi8 OrfiC8**  **On 8itU8tiOM**  **of 8**  **OWQ8?8bl8 MtU?O**  whloh **my 8tiOO**  **in** tho **fUtU?O. ’** 

**.**

**TitlO HO.**  **ii4, ~8?iiO011** **’ 0** **AMot8t8d Civil**  **St8tUt80, 0011-**  **tpi.nB** the **8UtUtO8 83p1h8b10**  t0 8nd gOfO?dB& buildi= 8nd 10&B **8OOOCi8tiO~ in**  thi8 **SbtO.** Dnd0r th* prorloloa8 of Art1010 0018- 7 fOrnoa'8 AnaotatOd Civil St8tUte8, the wag COMC4i88lOa8rlo d TOB 

### l

uponlolon **and** oontrel over all build- aad loan as80018- 

### tlona

### doingbwlnooo ln this Skta~

Artlo 88b-w 8nd 88ti-14, V8='0 AMOtatd CiVi1 **st8tUt00, 8r0**  **88** r0iia:



### ~tlolo sala-18. .In 0880 

### tho Bmklq C&8- 81ti8? Of fOX80 8m1 **find,** U9On **dO8tiOO Of**  **f?0O** other 

### l

vldoaoo, that 8q bulldin and loan 888oOiatIon 18 omduotlry **its burlino80,**  **in** wholo or ia pa-t, OOatnw to 18W, or f8llly.W 00~~~ with th8 18W, that **it0 8080tO**  **8r8** 1888 tbn **it0** llobllltlu iaO1Udiasa.1 

### ita 0891h1 **8tOOk, O?**  

### oondootln6it0 **btuiJh.08 h**  **8n PII**  l 8fe uMuthorlr84 **a? tnUdUhAt**  **DEMO?,** 

### the **&Ilkiil6 Cor:f8oioao?**  of Ten8 

### shall,b:: 8a order in aitily **8dd?eOOod to**  **th0 prarldont**  **OS ouab**  **8OOOOi8tiOn,** dirootnonor8blo li.A. Jamlooa, g8~8 4

l **ttoatioa** 

### th8?8t0l



### d OrdO?l



### cmpll8ao8dth tho 18w, aad tint 

### tho l **o8ata** bo 

### lnorcoad to l qtml llabllltlw, an4 In moo l

wh loaoaiation aMA1 roiuo or naghot **to** l mpl~ wltk any ouoh or4ar lawfully **Mda,** or 18 say oaao **MJ** rwhl **8aooiatioa** lo larolroat or lo daryor of 

### lnaolrur~, or 

### it0 l 

### aoota are lmpdrod, th8a 

### tho baklag CcrJOOl~O? O? 

### T0~888hUl MWA It0OO?tlflOOtO ot **8Utho?itT** 8nd MT **bogla** 8a 8OtiOa to nook@ t&8 ohar**tO)r Of**  owh **88OOOhtiOn ti**  **SO? a**  **w 3** **” intro&**  **O? r.-**  08iVO? th8r8Oi l

d tho dildi& **U9 Of**  **t8 8?l8i?8.,**  **Aay** l otlon brgua **wdrr** this sootion rkll b8 brought in tio **COUlltJ** Whorr 8UOh **888OCi'AtiOa** ha8 

### it8p?iIiOigcrl 91800 of bwlnooa 8ad In 

### thaa8mo of thq Stat0 of Toua oa ?al8tiOO Of th0 B8nk1~ COIE818O1OaO? Of TOm8, 8ad Shall **bo proroautod**  by the **AttOraOy** Gon~81.~

hrt1010 

### maa-14;

'Should th8 dhaking C~i8OiOm8? Of TO=8 **find, UpeU**  l xuin8tioa,

**th8t** 

### tha 8??8i?8 Of 

### w 8uOh 8SOOO1atloa 8re la umound aondltion **8nd the**  Ictere8t o? the **pUbiiC 60~1~6**  **th8 di88OiUtiOn**  **Of** 8UOh 88SOCiIItiOIi 8nd **th0** Winding **Up Of**  **it8 biD888,**  **it 8hdi**  **00 ?8?O?t**  **t0** the **Attoraay** "Jenertil who rh811 **in8titUtO** th8

### propor prooaodIng8 for that **PUCPO88. ”** 

A?thh 

### 0818-15,**V.?UOfl ’** **8 #AlllOtit~d**  **CiVil StrtUtU,**  **lak88 8**  **rOtu881 Of**  th8 8tV8OCi8tiOn to >errit **8U** 8XaaiMtiOll Of it0 **8ff&i?# 8**  **08U88** Of 8OtiOn t0 Wind 

### Upit8 8rRi?8, ?OrfOit it8 Shal'tu, 8nd to llqUid8tO the 8SOOOi8tiOa.

Rerrrrlng

## to rirtlolo8818-16, Vernon*8 Annotat8d **Civil StatUt88,**  it i0 **88id** in the OS80 Of i.OnSStfIrWllld?ng 8ti LO8IlA8mOi8LiOa T. **Skit8,** 153 s. w. (86) alO:

~8ootloa 18 dool8rr tbt tha 

### 'rlghto ad raudloa glron by 

### the twoprOo84lIq**88otioM** 

### am cuatiattV8 of 88Oh other, **but** that **a0 inVOlWt8~**  llquldatloa

### or any u8oal8tlon rh~llbo **80008p118hmd** l xo ogt

88 8boro 

### provld4d ; **th8.t** 

### 18 t0 l 

### 8Tr **8t** 

### th8**Suit** 0s thaAttoraor **08U8?81** 

### on In?ormtloal~d~~~t&f 

### th8Bamhla6Comloalosmr of Taxaomw 1 

### rid88 tkt l? thr **court** dotomlaoo th8t the 80800 8- tiCa' 8f?8i?8 l

hOuld **be** llquid8tOd and 1t 18 80 **OrdOrOd,** than th8 bmkU& Comd88lonor rh8ll rorthwlthkko 908800- 8iOa Of 8UOh 88oOO18tIOm, it0 8888t8 **8nd 8rr8irO.**  **OOllOOt**’

Ronorablo ii. A. Jaml8011,pat!r b



### ik elalr, pm7It8 **dabtr and**  oblQation8, ad dlr

### trlbutrit8 l

matr to 

### thae l8wfull~ ontitld thrnto

### flpr rrportly lt8 artion to th8 oourt ror 8ppronl.

Certain buildins and loan l 

### 88ooiation8 &*:a mi88d th8 **qUO8tiOIi** that th8 AttOrn **08li8N1 b8**  **80** 

### l **UthOrit;l** t0 **bring** a **8Uit uod8r**  **Tit18 ti,**  **8Up=, lid**  **888** Comlr8lon8r. **8P8OiriOauJ r8qUO8t8d**  **br** the &nLin(l andthe **Cm88** ***Itor** oar8tully OOn8ld8rl8g MtiOl8 8Sla714, **8Uplm, Pi**  **LOnO** Stir **BUildiIlg &**  **LOan A88** **’ B.,**  **V. Stat.,**  **8Upr8, it**  **i8 our**  **Opinion** that **the EUUikifh#**  cOESi88iOn8r should rpeoirioally requut th8 **AttOm8y** mnoral to tll. **8Uit** to forfeit the **oharter** ot a buildingl8d loan ls8OOiatloawhich 18 i88OlV8nt.Or l8 **OoDduatiq** it8 **bueinama, In**  wholr or in pal,t, cwply with the law, ato, contrfiry to law, or railing to Stated another war, it **18** our oplnlcm that the **ilfmking Cd88ivIl@r**  8hould 8paOlilaally rsQue8t th8 **Attor n8~**  oonural **to do**  thoro thing8 rtloh will bring **about** thr canorllalion oi the 488ociatlon~r olurter 4nd ii ncto88ury the 

### ap>olntmont ot a reoeir8r 

### thereof iOr th8 purroae of rtndln- up it8

### l Walr8.

wiry., #m now Ocneid8r th8 88Oond $8tt8r mntlonod in your ln

### oite 48 note that with ref@rOaOs t0 y>U 88OOnd 

### QX'OpO8ition you the call0of Shaw vg Lone St4r Bulldingk Loan &iIsoc:l4tlon, 40
L88loner has authority 

### to annul a permit o& **by court**  **aotion** .x. (i?d)

96&3, holding, among other thing8 that tho &takingCoaTh18 Ca80 h44 be8n reVer88d **by** th8 Co38X188108Of A?QMI18 Oi Teia8 Th 

### ln the oa88 **of** S&W v* &nO Star Wllldlng & LOan .48soCi4tion, 91 s. vi.(al) INS. It **18** 

### stated in thl8 tam:

"It 18 held by the Court of Clrll Appeal8 18 **SMtlon** 15 of the 1929 **Aot** 8hould

### not **be** giran th8 con8truotion that **it authorlta**  th8 Banking Coml8- 8lonsr to annul 

### a :Jemlt to e0 bU8inO88 In thi8 state rlthout 

### a court aotion, becaure suoh 

### a cormtruotlon would **rendor** the act uncon8titutlona.l a8 in tlolstlon **Or s8OtiY**  **19 Or**  **ArtiCh I,**  **4ne sOOtiOn**  **A Or**  **ArtiCl8** B of **our StEt8**  **ConstitUtion.** 'Ale thlnk thi8 holding **18 error**  **ior** tro **raamon8, first,**  **beoaure** the rrry uordlog **or** the Aot rill persit of no other OcWtructlom, and, 8econd, bwausa 8uoh omstruction doer not rendrr th8Aot riolatirr Of rithar of the above oonstitutional prOl18ion8.w

In the 0880 of 

### Yood8V. klchlta ?4fi8 BulldlngL Low Association, 96 S; ?i.(Bd) 64, the Su;romo Court Bald:,

nunorahl8 m. A* Jti1808, pQ8 b



### n l '&ti81U 669 4ti 66&d& 88&,18 8ifatUk8 it tb0 U81U81V8 @?irr) htJ 8t th8 mub6 COmd88iOn8r **t0** 48t8XMiJL8 tk8 aP8lJtib8 81 iM81t~, **Ud, if**  **ha d8tOr8bO8**  **tbt Ua**  **aUOOi4th 18**  iMO1t8& ati hi- aftOr WtiC8 tC Mk8 it8df 8OlWJit, it 18 d.' duty Co aatati

tbo P82Uit to d0 bP8iM88. a80 th8 Sink**i4 CM!Bi88iOMr**  **IS c;iVUl**  **88rbi8** **Oth*P** dUtiO8 in thr **8t8tUt88 d8fllW$**  ***hli!h78** htODd8d to ~tOVWt **th8** 

### ~p~m3loa or an Anaoltant 8arociaMon @I thl.8m&8.

(b&JO 608 th9 C480 Of ShflW V. %hltO!l, 08 41, ?il ti. ?z'.(#id) 498).

18 rlmt of tlkfor~~olng anthorltlms you urm rrrprstfuliy 4dd88d bbct it i8 tb OdIiM Or thi8 eOp6?t!~~8 th8t ~h8D l **build** lag 8ad leas a88oci4tlon ia on&ago4 

### la on illogol,

### unauthorirod UJ+ **84r8, rrmdulo8t**  **pnOtie8,** 

### +nd 18 

### lnoolvrntor ooadu8tlng It8 Li1~88, in rbalw 

### or In pet, CCatr4ry to the 149; 

### or fallingto 

### otmply with the 14~. 

### tbe btlnkliy 

### Coamlsolonorshallby 4n cmlor 

### invrltln( 4ddr4orod 

### totho prorldentoi 0~03assoointloa,directattoa$loa therotoand crdor **u;?;liancr** with the 14~~ and Ch%t 

### tha **488ot8 b8**  inOru88d 

### tol

qu41 lisbllltiOS, 

### if **the** 

### llabil~tloodr’J **greater t&n**  the **a804t.8, ud**  

### in **OdOe** 8UOh 4@SOciotiO4 r9tU300 and Als~3OtS t8 o.rply wlm any 8UOP order larfull~ **mde,** 

### or in e*ao 

### anl auoh 488OOiatlon 10 

### lnrolrontor in .?im,yer or 

### lasol-.mnoy,

or 44aetr **as0** lmjmlr86, than th8 B~ak14 CO&miS8ionOr Or tOX4S 8h4u **aGaUl it8**  **Oartl ’** **fioatr** 

### of authorltr. th0 **oMida3nt** 01 3 08rtlri04t4 ~i **4w.0rity 0f**  **4** 

### h;llldiqi

ona l~.~xocl;tlcn i8 not to **be** oc1fUu88d 

### wit.. the fortoltur8 or u4noolktlon of 4 ch4rt4r or tL0 oruo4ll4tlon of 4 

### permit to **a0 bwlwu** **’ in**  trrl8 Stotr by **4** rorolgn **oorporation 8r**  

### arrocietloa.
Tour4tory truly A;:promd **Juw 9,**  **1944** @rover 

### ~ollon Attornor ci4nsr41ot T8a48 Ap;lrotedr oglnlon Camlttu by

B. Y. B., Chmim4r J-T'ZO~XEX **3cii;U CP**  **‘ rWM** 

Dy (S) .trZoll*11114m8

A88i8t4n8