OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

Eo(onorablr II. A* Jamiaon, coml*' 

nopu-tmont of bnklng 

Au8tla 14, Tenr 

Tour 1d.t.r OS X8 

or thlr d8p8rtm8nt r8lprdl 

r0ii0wO I 

ing 8nd Loan 

l oooaalons with 

the omditlon 

l 7, 1945 thm tku fioakad 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&UOt18% it8 bU8i8888 8Otlt?8- t0 hW, 18 f81110& t0 

Omply 81th th. l&r, it8 U88t8 8r8 1880 th8li 

it8 li8bilitf8. - lnoludlu 811 it8 c8pita1 

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 

p urpol swimu~upl~ w 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 BMkla@ 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 ?8vOOatlOa l $ 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 o ffiOi888t 1 l i8Ul th8 AI8OOi8tiOn'8 p?dt t0 do buOlaoo8 fa h=O. 

*Ia rlw of th8 i8ot tbt thuo rugg88tioM 

Ubr808 8 proooduro which ha8 not boon follorod In 

?OOpOOt t0 ?iO? 8lt&WtlOm Ot 8 8upU8bl8 B8tUn 

W8 r:.Otid 1 E 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 h8VO p?8Ouol8d th8t the 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 oplaion at tho tlw rho lottor of d8to moatlonod wno t?oa8- 

8ittO& t0 YOU tbt th8 8albLll1145 Of thB peldt t0 d0 

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

would ?8qui?o l 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 ma rollart 

l ëSUtUtO .8P thO?iSbw # l - 

8laaloaar to maul l ortltluto as nutheritr or buildlry aad 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 uo h 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? OpitliOn 011 tho 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 COMC4i88lOa8r lo 

d TOB l uponlolon and oontrel over all build- aad loan as80018- 

tlona doing bwlnooo 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 iaO1Udias a.1 

ita 0891h1 8tOOk, O? oondootln6 it0 btuiJh.08 h 8n PIIl 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, diroot 
nonor8blo li. A. Jamlooa, g8~8 4 

l ttoatioa th8?8t0 l d OrdO? l cmpll8ao8 dth tho 18w, 

aad tint tho l o8ata bo lnorcoad to l qtml llabllltlw, 

an4 In moo l wh l oaoaiation aMA1 roiuo or naghot 

to l mpl~ wltk any ouoh or4ar lawfully Mda, or 18 say 

oaao MJ r wh l 8aooiatioa lo larolroat or lo daryor of 

lnaolrur~, or it0 l aoota are lmpdrod, th8a tho baklag CcrJOOl~O? O? T0~88 8hUl MWA It0 OO?tlflOOtO 

ot 8Utho?itT 8nd MT bogla 8a 8OtiOa to nook@ t&8 ohartO)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 it8 p?iIiOigcrl 91800 

of bwlnooa 8ad In tha a8mo 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 xuin8tio ath8t , 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 Up it8 8rRi?8, ?OrfOit it8 Shal'tu, 

8nd to llqUid8tO the 8SOOOi8tiOa. 

Rerrrrlng to rirtlolo 8818-16, Vernon*8 Annotat8d 

Civil StatUt88, it i0 88id in the OS80 Of i.OnS StfIr Wllld?ng 8ti 

LO8Il A8mOi8LiOa T. Skit8, 153 s. w. (86) alO: 

~8ootloa 18 dool8rr tbt tha 'rlghto ad 

raudloa glron by the two prOo84lIq 88otioM am 

cuatiattV8 of 88Oh other, but that a0 inVOlWt8~ 

llquldatloa or any u8oal8tlon rh~ll bo 80008p118hmd 

l x o o g88 t 8boro provld4d ; th8.t 18 t0 l 8Tr 8t th8 Suit 

0s tha Attoraor 08U8?81 on In?ormtloal~d~~~t&f 

th8 Bamhla6 Comloalosmr of Taxaomw 

rid88 tkt l? thr court dotomlaoo th8t the 80800 1 8- 

tiCa' 8f?8i?8 l hOuld be llquid8tOd and 1t 18 80 OrdOrOd, 

than th8 bmkU& Comd88lonor rh8ll rorthwlth kko 908800- 

8iOa Of 8UOh 88oOO18tIOm, it0 8888t8 8nd 8rr8irO. OOllOOt 
’ 

Ronorablo ii. A. Jaml8011, pat!r b 

ik elalr, pm7 It8 dabtr and oblQation8, ad dlrtrlbutr it8 l matr to thae l8wfull~ ontitld thrntoflpr 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 

and the 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 building l 8d loan l s8OOiatloa which 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 lnoite 

48 note that with ref@rOaOs t0 y>U 88OOnd QX'OpO8ition you 

the call0 of Shaw vg Lone St4r Bullding k 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 &taking CoaTh18 Ca80 h44 be8n reVer88d by th8 Co38X188108 Of 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 

th8 Aot riolatirr Of rithar of the above oonstitutional 

prOl18ion8.w 

In the 0880 of Yood8 V. klchlta ?4fi8 Bulldlng L 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 Sinki4 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.8 m&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 th i8 eOp 6?t!~~8 th8t ~h8D l build 

lag 8ad leas a88oci4tlon ia on&ago4 la on illogol, unauthorirod UJ+ 

84r8, rrmdulo8t pnOtie8, +nd 18 lnoolvrnt or ooadu8tlng It8 Li1~88, in rbalw or In pet, CCatr4ry to the 149; or falling to otmply 

with the 14~. tbe btlnkliy Coamlsolonor shall by 4n cmlor in vrltln( 

4ddr4orod to tho prorldent oi 0~03 assoointloa, direct attoa$loa 

theroto and crdor u;?;liancr with the 14~~ and Ch%t tha 488ot8 b8 

inOru88d to l qu41 lisbllltiOS, if the llabil~tloo dr’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 lnrolront or 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. 

Tour4 tory truly 

A;:promd Juw 9, 1944 

@rover ~ollon 

Attornor ci4nsr41 ot T8a48 

Ap;lrotedr oglnlon Camlttu by 

B. Y. B., Chmim4r 

J-T'ZO~XEX 3cii;U CP ‘rWM 

Dy (S) .trZoll *11114m8 

A88i8t4n8