641

July 16, 1947

Hon. Jesse James, OpinionNo., V-307 State Treasurer; Austin, Texas .- Re:

Dear Sir: Your letter of request the above titled subjectmatter is Constructionof Artitle 1524-a,V.C.Q.,. with respect to 1 transfers of securitiesand releases thereof,deposited with the State Treasurer.
for an opinionupon as follows: “In compliancewith the provisions of Article 1524-a, one of the investment OODpanies has been depositingwith 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 enclosedherewith. When the notes arewithdrawn from this office,we execute anotherTransfer of Lien, transferringownershipback to the company. This .transfer

also is enclosed. "The questionhas now arisen as towhether we are using the correctlanguage in such transfers,as the onesnow being used purport to transfer ownershipby 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, wewill appreciate your views.

“2. If the enclosed forms we not correct, should the transfers of lien now in force on the notes nowdeposited 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 1sin tzu& of any charaoter.

Wethink, 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 r ind spensable. Your form of the conveyance by the Treasurer to the depositor is an absolute sale upon a nominal oonsidiration. Wethink 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 byHon. Jesse <Tames- Fage 3, V-307

the Banki.&;

Commissioneras being eligible and sufficient in reasonablemarket value for the purpose of the deposit. This certificate of eligibilityand 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 OpinionNo. O-957 by this departmentwritten to your predecessor,Hon. Charlie Lockhart,which may be helpful. SUMMARY

1. Transfers of real securitiesto the State Treasurer underArticle 1524-a ofVernon'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 shouldnot accept any such deposits, unless they are accompaniedby the certificateof the Banking Commissioneras to eligibilityand sufficiencyfor the purpose of deposit. Yours very truly, ATTORNEY CENERAL OF TEXAS

0S:wb BY !ilikke Assistant Encl.

APPROVED:

ATTORNEY GENERAL