I . 

F XAS 

Honorable Carol S. Vance 

District Attorney 

Harris County Courthouse Opinion No. M-739 

Hous ton, Texas 77002 

Re: Surrendering of titles to 

Dear Sir: salvaged automobiles. 

In your request for an opinion from this office you 

set forth the following fact situation: 

"Automobile insurance carriers have made a 

practice of acquiring salvaged vehicles from 

their respective insureds' whenever the insureds' have been compensated for the total 

loss of their vehicles. The certificates of 

title are endorsed in blank and surrendered 

to the insurance company paying the claim. 

Of course, the license plates are surrendered 

to the insurance company paying the claim. 

The carrier, in turn, places the salvaged 

vehicle in the Houston Salvage Pool, a common 

pool solely supported by the insurance industry. Prospective buyers are afforded the 

opportunity to inspect the vehicles placed in 

the salvage pool and thereafter, submit bids. 

The highest bidder is awarded the right to 

purchase the salvaged vehicle, and when the 

purchase is made, the certificate of title 

and license plates are surrendered to him, 

the buyer. Normally, the bids are submitted 

by junk dealers who, in turn, sell the salvaged vehicle, with its accompanying certificate of title and license plates, to the 

general public. The purchaser can rebuild 

the 'salvaged vehicle' and drive it with 

the certificate of title and license plates 

being completely valid." 

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Honorable Carol S. Vance, Page 2, (M- 739 ) 

Article 1436-2, Texas Penal Code states, inter alia: 

"Any person, association of persons, corporate or other, who customarily engages in the 

business of obtaining motor vehicles for scrap 

disposal or resale of parts therefrom or any 

other form of salvage, shall . . . It is further 

provided that all Certificates of Title covering such motor vehicles obtained for scrap disposal . . . shall upon demand be surrendered 

. . . for cancellation.' 

Your question is whether the members of the described 

association (an unincorporated common pool) are subject to 

the provisions of Article 1436-2, -. 

Scrap disposal or resale of parts need not be the sole 

business of a person or corporation in order for Article 1436-2, 

Texas Penal Code, to be applicable. It is only necessary that 

they do so whenever the opportunity presents itself. Ex Parte 

Rubin, 362 S.W.2d 331 (Tex.Crim., 1962). Attorney General's 

Opinion No. C-707 holds that the statute requires the surrender 

of the certificate of title. 

It is therefore the opinion of this office that the described corporations are subject to the requirements of Article 

1436-2, Texas Penal Code. 

SUMMARY 

The members of an unincorporated pool dealing in automobile salvage operations are subject to the provisions of Article 1436-2, Texas 

Penal Code. 

n 

era1 of Texas 

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. 1 

Honorable Carol S. Vance, Page 3, (M- 739 ) 

Prepared by Howard M. Fender 

Assistant Attorney General 

APPROVED: 

OPINION COMMITTEE 

Kerns Taylor, Chairman 

w. E. Allen, Co-Chairman 

Larry Craddock 

Dunklin Sullivan 

Jerry Roberts 

John Reese 

MEADE F. GRIFFIN 

Staff Legal Assistant 

ALFRED WALKER 

Executive Assistant 

NOLA WHITE 

First Assistant 

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