641 

July 16, 1947 

Hon. Jesse James, Opinion No., V-307 

State Treasurer; 

Austin, Texas 

.- 

Re: 

Dear Sir: 

Your letter of request 

the above titled subject matter is 

Construction of Artitle 1524-a, V.C.Q. ,. 

with respect to 1 

transfers of securities and releases 

thereof, deposited 

with the State 

Treasurer. 

for an opinion upon 

as follows: 

“In compliance with the provisions of Article 1524-a, one of the investment OODpanies has been depositing with this De-’ 

partment certain real estate notes. When 

these notes are deposited, Transfers of 

Lien are furnished this office, said. transfers having first been filed. in the county 

clerk's office of the county in which the 

property is located. A blank form of such 

transfer is enclosed herewith. 

When the notes are withdrawn from this office, we execute another Transfer of Lien, 

transferring ownership back to the company. 

This .transfer also is enclosed. 

"The question has now arisen as to whether 

we are using the correct language in such 

transfers, as the ones now being used purport to transfer ownership by actual sale, 

when as a matter of fact, the ownership is 

transferred only in trust. 

"To clarify this situation, we kindly request 

your opinion of the following questions: 
. 

Hon. Jesss James - Page~2 (V-307) 

“1. Are the forms furnished herewith correct, or, should the purported cash donsid+ration be left out and the words Iin 

trust’ be added? If you have further 

sugqestions to make on what the correct 

forms should be, we will appreciate your 

views. 

“2. If the enclosed forms we not correct, should the transfers of lien now in 

force on the notes now deposited be amended so as to correct the error? 

“3. Should the State Department of Elank1% approve, in writing, each Transfer of 

Lien, before it is aocepted by this office?* 

For convenience we shall answer your questions 

in the Order in which they are stated. 

\ 1. The form of transfer of the deposits contemplatea under Artiole 1524-a of Vernon’s Civil Statutea 

which acoompanies your letter Is that of an absolute oonveyance to the Treasurer. It makes no reference to the 

statute nor does it specify that the conveyance 1s in tzu& 

of any charaoter. 

We think, however, the form is sufficient for 

the statutory purposes mentioned. A deed, absolute In form, 

;z; ;“, shown to be a conveyance in trust or mortgage. OarCarter, 5 Tex. 93; Young v. Fit%s, 183 S.W. (2d) 

186; Lionard vs. Smith, 186 S. W. (28) 284. 

It would. not be amiss, however, to add to t&e 

granting clause the words “such conve nce being in statutory trust”, although this is not ind r spensable. 

Your form of the conveyance by the Treasurer 

to the depositor is an absolute sale upon a nominal oonsidiration. We think this form is sufficient for the same 

reasons we have statea above in support of the transfer to 

the Treasurer. 

2. Since we have held the forms to be sufficient , it is unnecessary to answer your question No. 2. 

3. The State Treasurer should not aocept any 

deposits under Article 1524-a - whether as an original or 

replacement deposit - without certifioate of appr,oval by 
Hon. Jesse <Tames - Fage 3, V-307 

the Banki.&; Commissioner as being eligible and sufficient in reasonable market value for the purpose of 

the deposit. This certificate of eligibility and sufficiency, however, does not absolve the Treasurer from 

the duty of requirin;; the proper leeal transfers of 

such deposits to the State Treasurer. We hand youherewith copy of Opinion No. O-957 by this department written to your predecessor, Hon. Charlie Lockhart, which 

may be helpful. 

SUMMARY 

1. Transfers of real securities to the 

State Treasurer under Article 1524-a of Vernon's 

Civil Statutes, may be in the form of absolute 

conveyance. Carter vs. Carter, 5 Tex. 93; Young 

vs. Fitts, 183 S.tV. (2d) 186; Leonard VS. Smith, 

186 S. W. (2d) 284. 

2. The Treasurer should not accept any 

such deposits, unless they are accompanied by 

the certificate of the Banking Commissioner as 

to eligibility and sufficiency for the purpose 

of deposit. 

Yours very truly, 

ATTORNEY CENERAL OF TEXAS 

0S:wb 

BY 

!ilikke 

Assistant 

Encl. 

APPROVED: 

ATTORNEY GENERAL