.. ; Ilo. So78

#ala oplnlon holdmr :Y L That real emtate my not oonstituts

all QT portion of the oapltal hook of a oasualty

t y '

- suranee oompmy at the time or itr lnaorpor - tion. 8. That no p&ton 0r the oipitP1 otook0r a OQG ualty insuranoe

oozip5ny may be-lnvestted

in real oathto at any time aft0.2

the lnnoorporation

0r the 0on;any.
5. That all or any potiion or the fmds of a stook oasualtp

lnsuranoe

oo;.pany,~

overand abovo its oapltal

stook may be used for the purohaseof **a build-**  at least

ampleand adequate

ior the trnnoaotlon

&the buslnese

or the oasualty

lneurenne oompany,

uhloh bullding

may be uned in whole or ln partfor the aoomno&tion or s-h +mrudty lneitanne

ooqnny in the transaotion

v or Its business.

OTTSCE OT Tliii ATTGRNEP

OENLRAL

Iion. a'alter 0. Woodward Chalrm.m Board0r Innuranoe

cd~~ion~r astin, Texas bearsir: '_ oplnlon wo. O-958

_,Ret Insurmoe - Capital atookor oaoualty lnsurnaoe

ooApony- surplus

- Inventaente - Real estate.
Tour requont

ror opinion

upon the r0u0wing questiona

"1. Lay rh.l o&ate oonotituto all or any por$1011

or the oapltal

stock08 a oasualty

insuranoe oo~peny

at the tl.zq

or its lnoorporatlon?
"3. In the eront tbnt the flret quo&ion 1s answered

ln tho negative

may all or any part or the oapltal

stockor a oasualtp

inswme ocmpany to be inveotod in r0cil estate at anYtlme after the inoorporation bf the oonpanp? "3. Xny any part of the iundeof a stook oasualty

00 pany over and above lto oa?ltal stook be invested

ln real ostate?w haa beon reoelved

by this 

## depnrtknt.

. Tho Zegular

Secnlon of the Borty-sixth

Legislatme paooed

lic;leo Bill :'o.

928, w!vloh

1s an sot mendin;; Artlole

4705,xrtlole

4706 and hrtiole

4993,as wondad, CUM re;~alin~

Art1010

5001,a~ mendad, or the Rovisod civilStatutoa

**0r** Texae,1925. SaidRogeeBillno. 928,Ho& Kalter6, Woodward, ,me"#8

*upa, reads as r0rmmt

‘ AN ACT awmQLPg ml010 4706, Art1010 4706, and Artlob 4993 am unded, and repealing I\rtle ale 3006 as amended, of the Rotlsed

Clrilstatutea or T-8 of 1925,do8l&uatlngthe run& and 6eourltlee

of whlohthe oapltal ntook ot lns~ranoe oompanles

inoorporated

under the pro~lslms or Title 70, Chapter 8 of the EevleodClrilstatutoa or Texas,shalloonalat, dealgnatlng

the eeourltles

in whloh fundsof #uoh o~~.psnirm may be inrented;

provldlag

oertaia Ilnritatlcma

on the amount of onpltal

#took of guaaral.oaaualtyoompar&~ end requiring deporitm to be trade by ruoh oonpanles;

an+ deolarlng

an umrgenoy.

‘ BE IT BWJXED BYTRE LPDISIATURE mTlIX SPATEOr TPASI *SeotlaPL

1. That Artlole

4706, Artlole

4706, and Artiole

4993,aa amended,

of the Ro~isod

Cltil Statutes

of Texas or 1966,

be and the-@- are hee;;y amndod, ao l e to hereafter read as fol-

*&tlole 4705. Itomeor Capital Stook. The oapltal hook or my such lasuranoe oonpaap, exoept any writing

Life, Bealth and Aooldent

Incuranoo, ahall

oonsl&t
l l. In lawful money or the Unitedstates; or

“ 3. In bonds or this 5tate or any oouaty or inoorporated

tuwa or city there&, or in the nttuok of any national banks or "3. In rim riortgagoe upon uninoumbered real e&ate in thla &ate, tho titleto whloh 1s valid,

**and** the market

Yalueof whloh 18 not.leas

than forty (401 per oeat nor0 than the amountloaned

thereon. Ii any part of the yalueof auohreal estate 1s in buildings, auoh building shall be lneured

against

loss by ilre for not leasthan slxtp (60) per oent or the ialuethereof, with 108s olauae

payable to suoh oompany. Provided, that the prowlslmlr **or** thle Itilole,

with reepeot

to the Yalue of real *state, oonparod to the amount loaned thorooa,

shall not applyto loanaseouredby real ertato whioh are insured

by the Poderal Houalng Admlniatrator. RArtlole

4706.InYostnent

or Funds. No oompony, exoept

any wr:tlnS

Lllo, Health

and kooldentXnsuranoe,

organized

under tho pro~lslons or this Ohapter shallintest ite fund6 OY(V and abate it8 pal&up oapital stook la any othercanner than aa r0mwrt *(a) In bondaof the United statesor or any or the Statea

oi the United

StatenproYided sunh bonds, are, at the time of pWohaae,Intnr~at-bearlog or not la drrauxt. "(b Ia bond8 or rlrst lIear 01).unineumbored rea eotato in this State or in any other Sate, OoWtry or prorlaoe In whloh suoh oomWY may be d&lloenaad to oonduot an tiaurMOO budneos, **and** provldlng ln eanklnetanoe such real ertate

ahallba worth at leastforty (40) per cent **more** than the mount loanedthtreThe Yalueof ouohreal e&ate ahallbe de- %alnod by 'a

Yaluatlon

**made under**  oath by two (8) freeholder~ or the oomty whore the real entato

Is looated,

and ii the bulldlnga are ooaeldered a pert of the Yalue 0-i the real eotate, they must be insured eGalnet losrby rlre for aot lea8 than sixty (60) per oeat oi the Yalue ~theraoi,

with losr-payabkolauw to auoh oomWY* *(o) In bondaor other interest-bearing evl-~ denoeof indobtodnoss oi mny oounty,

Lnoorporate4 city town or aohool or sanitary

or navigation &trio4, l

a hnarlgatlon

dtntrlot

to oontaIn a population

of not loss thin three hundred

aad thousand(359,000)aooordlng to the last reoedlng Federal Caneus, ln this or any other State In wiiloh said oompany nay be duly lloeasod to nonduot

an laseranoe buslaere, If suoh**evldonoeo** or Indebtednear
arm issued

by authority

or lnw and St interest u&m thenhas never been deiaulted. "(4) In the stooks or bondsor otherooldonoes of Indebtedness of any solYen dlvldenll- 'paying oorporatlon

lnoorporated

underthe lawa of this State,

or or the United

States,

or of any State,

oountry, or provlnoe In whioh suoh ootlpmymny bo duly lloeaaedto oonduot an la8uranoe bualno8a. *(e) In loans

ugon the pledge

or any mortgage, hook, OT **boa&,** Or OtherCYideIiOO Of LndobtOdnesa,aooeptablo

as Investmenta

underthe terms or this law ii the ourrent valueor suohizortgage, atook, bonds or other twldezioe of Indobtednerr 1s at leant 4wwsaty-tire (25) per oent more than tha amount loaned

thereon. a(i) That the restrlotlone oontained

In subscotlon

(b)hereof

that mob real estate shall be worthnot lean than forty (40) per oent of the aaouat loaned thereon,

and that the Yalue of suoh real estate shall be doterralnod by a Yaluatlon

fnade underoath by two (3) treeholders

oitha oounty

wherethe real eetato 1s loonted and ii bulldin&s ax0 oonsldore4 aa a part oftho Yalueof rruoh real estate theymust **be** insured for the benefit of the4 mortgagee,

shall not applyto loana scow06 by real estate In Texas

whloh are insured by the Pederal Hoorulng hdmlnlatrator. g(g) ;Th

interest-bearing

otenor bon& orEon* Walter 00 ‘ loodwara, pa&a $4

the Vslvsrslty

of Tsms lsausd

under snd by tictue of Ohapter

CO, Aote or the Party-third U@’ lalaturo, Seoond

Cal&d &melon. %WtSole COOS. Capital and Depoolts.Oaly oompanlea ormlabd a@ dola buslneaa andor the prorlslam oi **thla** Ohapter s L its praplslcms. IJ. be subjeot

to Suoh :oonpany

shall hare not lose.’ than One EhndreQ

Thougand ($100,000) **Dollars** oi Oapltal stooksuboorli?od, paid in, la oash, wlth an adaltIonai

Plfty Thousshd

**Dollars** .(@jO,oOO) 02 oapltal

stooksubsorlbod **and** fully paid In, %n oash, for **every** kind ot lnsuranoe Iboro tban oae whloh It 1s authorized to tramaot. Suoh oompanlea

with Two Hundred

Thousand($200,000) Dollars of oapltal &took subsorlbed

and fully paid ln, Ia sash,shallbe authorized to **trano** aot all and Avery kind or Inauraaoe speolrled in’thefirstArtlole of thls Chapter;

all of the United

States, or of this State,or of shy oounty or Iranlolpality

of this State,

or ti notes
or bondaaeourod

by moitgaee

or trustdeed In-

~. sure4by the ?edoral Eouslng

Addniat#AtOr, or in bonds or flrat liens upon unlnoumberod real o&ate la this State, or In any other

State ln whloh suoh oomparg

may prevloualy

have been lloeased to omduot an Inauranoe buslnoss: In either Inatanoe,

suohreal estate s&illbe wrrth not lssa

~thaa iorty (40)

per oentmore than ths amount loaned thereon. If any part of the value or suah real l stats1s In bulldings suohbuildizigS ~&hall be i.W3uOd a not le.esa

than sixty (80

$ hst lOBa by rlr5 ro2 par sent of tho value thereof,

wlth,losa-payable

olauao to the ocmgany. The value or euoh real estate shall be detarmln**od** by a sworn

valuation

mads by two freeholders of the **oounty whore**  the roal ostate Is situated, Provide4

that suoh reatrlotlon shall not apply to mortgapoa

inrured by the Federal

HousingAbtr.l&etrator.

Upon suoh oompsnp

furnishing

evl**denoe** satlsinotor

to the Coanisslonor

that the ‘oapltal

**stook** as h:

orolnpresorlbod

has been all subsorlbed

and pald up in oasb ln Sood faith, **and** that rush oaplta$ stook has bem lnvonted as herein

proscribed,

**and** upon the deposit of the sum or yl’itty

Thousand($60,000)

Dollars

or auah soourltlea **‘ or**  in sash

with **the** Stats

Treasurer, than **mid** Commlssloner shalllssuoto **said** oompany.

a oertlrloate

authorizing

it to 40 buslnesa. NO part or ths oa,7ltal paid ln shall be loaned

**to** say of’flosr

or eald oompany. Tn ..t.he eventany suoh oon,my shall be required by ths law or any otherState, oountry or pro~laoe as a requirement

priorto doing

an lnsuranoe business

thsrela to deposit

with the dulyappointed

oriloor or suoh otherStats, oountry, .’ or provlnoe,

or rlth the state

Treasurer

of this state,

any ~eourltles

or cash In exoena

0r the said deposit oi Jifty Thousand ($50,000) Dollars herelnbeiore

msatloned,

suoh oompany, at it8 AIsorotlon

may deposit

with thr State Treasurer

seourltjes

or ths oharaoter

authorizl d by **this** law, or oash suriloloat **to** eaable **it**.,.._;:_
.(, xwi yltsr CI Yooaw4rd, page #a :

to Awt 4Wh requirements. Thi State

Treaaursg is hereby

mthorlzea ana aireotea to ~UO~YO SU& ~ . a O P O d t

4 Ji a t fJ h O Id it l ~OiWf~Oi$f

to? th0 prOtOOtion of iu po1icyhol4erri Of ths oanpany; Any deposits

so mtide to meet the **raquiramente** or any other Stat., oouatry,

**or** provlnoe

shall

**not** be Wlthdmwn bythe.ocmjmafoxoe~t upcm flllng

with the4 Comdesloner

0 vi a e i m

l atisfnotoryto

bin thnt the oosipany

baa with4rawn

fronbudnoc~s,

sn4 has ao unsooured

liabl~ltieo

utstanti suoh othersttite,~oouptry, or province

f in app p vhloh suoh l 44ltiaial

4eposit was requirea,

ana upon the fllln&

of auoh Svldenoe

the ooqany may nlthdraw wh 844ltlonal deposit at any time.
'980.e. Art1010

8006. Thlm ml010 is hersby expressly

repealed.* mtlole 5007,

Revi8ea

civilStatutis

of Texas, roaam a4 r0iiowa: “No.suoh

ooz~pany shallbe permitted-to purohase, .h0iaor convey

real estate, **exocpt rorthe**  purpose and in the m.anor herein set forth: '1. For the eraotlon an4 malntananoe

of bullalngs at leastamplenna adoqwto iortho **trnns** aotlm or tls own business, .'. '8. suoh **40** shall

hero been

mortSnSe4

to,lt ln gaod faithfor rroney due. "3. Suoh as shall

have been convey84to it in the rntlsfaotlon

of debts

previously

oostraotab ln the oourse

ot lto dealings

andwhioh mat be taken in by the oom)any oa **aooount** of the debt. : aoourea by auohmmQage. "4. Such **4~** shall

haveborn purohaaed

nt aale? ‘upon judgments,

deoress or mortgages

obtained or ma4e for suoh debts. No owpany lnoorpomt04 as aforesaid shall purohaso,

hold or oonvep ;,“.i:fte in any otheroasesor ror 4ny other

Art1010

5008,Revised

CivilStntutea

or Texas, row33 as r0xh4: _* wA3.l

real estate

a0 acquired,

exocpt

**48 16**  **oo** ouple6 by bulldings

use4 in whole or ln part ior the.acoommIatlon

ai auoh oorqanleo

in the transaotioa of lts business shall, exoept as hsrelnsrtsrprid0a. be sod an4 ai4p0seaor wfthln ton **year4** arterauoh oompany shall haveacquired ; title to the same, No suohoompany shall hive suoh real eatatefor a longer period than that aboveffientloiied,

unless the 84ia oclcpany

shall procure

s oertlflonte

fron the Commissioner that the intercots

of the company

will suffer

Icaterlally **by 4**  toroe **sale** or suoh real e&ate, in whloh eventthe tlms ior the salemay be ostenb**04 t0**  SUOh **tlm4 48**  **the C~W~WO?**  **Shau QireOt**  **in** said 00ctiri04tor*80th VatOr th,wOodWUa, pagb 46

we have been krromea by the Boar40r xm.r4noe Commissioners

oi Texanthat **all** oasualty insuranoo

oompmle8 aowoperatlng in Texoe were orente4under the proilsloas

or what 1s now maptier LB, Tltle~TB

**or** the Revlsod

Olvll statutes

of ‘24x44.Therefore, we mswor your qWstiOn8, insofar 4s they applyto casualtylnsuranoe ooqan.les

orgedzea unaim Oheiptor 28, Title 78 0r J **the** Revisoa

civil3tatutee

**or** Texas,as it would servo no prnotloal

purpose to dleoua6

any questfon

whfoh

might arise with roierrnoe to a oasualty oonpany urhloh might have been organized un4erChapter 8 of Title 78 of the 

### Revleea **~irii statutecr**  **0r** ~-4, The language

of the daptlon

of Xouse Bllixor 988 of the Foxliy-sixth Legislature

spsoliioslly

lfmlts the applloatlon

of amendo Artloles

4705 an4 4706 or the Revisea

civilStatutes to oasualty oompanics

and other name4 insuranoo

o0pIpnnfe.o

oroatod

UnOer Ohapter

a, Title 76, ReVlse4

clvllStatutsr

of Texas. The oaptloa-d&es sbowsan lntontlon

to limitthe apglloatlon or anenEe4 Artiol.4

4993 to oasunltyinswanoe 001+438 0r04teaunCar Chapter

18, Title 78 Revise4 Clvll3tatutes

or Texas* Thesearticles

appl~sb,

roopectlvely;

to sala oom-. panleo prior to the pas-0 0r House 811lN0. 928, eupra, an&this blll shows

no lntontfoa

to &age the typeq or ooropaales

whlohoaoh oontrol. Wo, therefore,

oonolude

t&it hrtlole8

4705ad 47d6 ot the Reviled

CivilStatties

ot Tcxas,'4o

not ap/ ply to oaswlty itm8r4404~ oompanies

orgnnizoa

under Chapter

28, Tltl. 78 of the Revised 01~11statutoo of TWSa irtlole

4993 Revised

Civil Statute8 48 nmonb04 by saidEoueeBlliNo. 928,relates to ani oontrols oaswlty insurnnoe

oompanles

oroatea unUer theprovlslcn of what 1s now Ghapter l.B, Title 70 or the Revised Clvll Statutes

of Texar. Thls nrtlole prereaoribed

the typo of eeaurltyin wtioh the oayltal stook of suohoasunltyin4ur4.404 oonpanier

may be investo4.The outright purohase of real estate

is not lnoludod

in the list of approved seourltles.

& our opinion,

thls etatute

lo a oontinulng 1imitatZon

upon the pow= to invest oapltal

stook an4 prohibits

the lmestmat of.suoh fundsin any other assets than those

naned therein,

not onlyat the tlw of lnoorporatlon,

but at all tlmoathereafter. Wo, therefor nnswer your first an4 seoona questions

as 4p ii4a to oasualty lnmannoe 00~1 nle8 / oreatad

under C tle 78, Chapter lE,.oi the Ro on4 Clvf: vi? 11 statutes

of Texas in the negative.
Prior to its repeal

by the last scsslon

oi the Loslglature

through said

Rouse Bill No, 92f3,

Artfale 5:‘06, Revised

Cl011Btatutos,

1925, presorlbed

the mannor of lnvestmenta over an4 above the capital stookor 4 oasualty

lneuranoe

ooapaqp

mento under the provlslonsor Ohapter

l.8, Title IO, Revised

01~113tatutos or Texas. ThO offsot @i the repealof this artiole 16 to reaove the llmltatlon plaoed upon the lmestmnt of all run48oisuoh oompanies, sioopt the onpltalstook, ana Lear0

the aiaor0ti0n

or makingsuoh lnvestnent.ln-

i
&II. Walter

0, w00qwua, pale 87

the hands or thr 

### Board or Mreotora of the oorp0r4tlon abjeot tb thr li.mitati044 or Artlo* 8007 Ma 6008, 

### mifbea civil

Statute8

or Tsxas. :

. In answer to your thirdqwitlon, you are re- .. 8pootful.l.y

a&lead that it 18 the oplnlon or this Cuppartment, that all or a portla~ of the fundsof a stookoneualty insursnoe

ooapsny,

overan4 above its oapltal atook my k, usedror tha ereotlon .%a naintenanoe

of a bulla-/ %nS at least

ampie ma adequate

ior the trammotion

of the buslmss of theoasualtp insuranoe

oocpany. Suoh bull4ingmst 0s wad in whole or in psrt for the aoocaimodetim or swh oompqy in the transaotlcn or the budness 

### or thn ompany.
You are‘iurther

respeotf'ully

nCvlseCth4t

it is the’oplnion

of this Cepaa%aont~thnt 4 aaeualty

lnsuranoo ooqany 1s permltteaunder the law sad under Ntlole 5007 of the Revise4

01~11Statutes

of Texas,to 4OqUlre. an4 holC~rsalestute undersootlons

2,3 sn4 4 of nrtlale 6007,

but that under Artlole 5008, Revlse4~Olvll Statutes

or Texna,

411 real estate

so 47quire4,

except as ls ’ ooouple4 by the building used la #huls or in part ror the aooomodatlon or such oompany

kr the txansaoti0n of the business

of the o~nrpany,

should be 4014end Clapose4oi within 10 yearsaftersuoh oompnny should have aoqulreb

title to the ssme,~1168s the oarmany

should 440~~0 a aertlilonte

rromthe Comleslonsr that the interost or the o~mpanywould suffer ourterlally

by a foroed sale or euohreal estate, ln whioh nvent,time for the sale plight be extended to EmOhtim 4s the OcinmiMlonnr ‘shoul4 Cireot in ml4 petltlon.

“TEWla&thnt this

### anmwers Your 5.nqui.W.

*a U.
Touravery truly
ATTORNEY OINXRAL OF TEXAS

WaJFrob ~~~iZ=ZLis.istpbt

This opinionhas **been oonal&red**  ln OO$WMOO, approvea

and ordered rooor404.



### OERALB c. NANN

.. Attorney Oeneral or Texar