I 

G- 

. 

OFFICE OF THE A’170RNEY GENERAL OF TEXAS 

AUSTIN 

AOKI. if. J. Lawaon 

seoretary ot State 

hunt In, Texa8 

Dear Sir: 

Your letter ot 

opinion or this Deprtment, 

sbo9e nsmed 0 

ahortor *or0 

. 

&mated to the 

fo oopy or that anal&~ 

of CNr as8ootatlon rhall remain in 

of fifty year8 from data beeof, and 

, under tNa ehartsr hare all the 

oted 

p the law8 erirtlng in: or that may 

by the State of Texa8. 

*This lnstrtnnent HRLB mwar filed with the Seorebarf 

of State, but we hare been furnished with a Oertlfled oopr 

of the amendment, end we am attaohing it to thin letter. 

B 
~a. vi. 3. Lawson, page 2 

qou will note iro;lo the last ameadmant that tNa 

corporation does a fraternal benefit insurance bmlness, 

and as such is under the supervision of the Inauraaoe 

cwullsslon. 

-The question whahioh ia raisa4 by this altuatlon is 

whether the Slllne of the amandm~nt with tha fnruranoo 

commission extended the oorporate srlatanoe fifty year8 

frou May 28, 1937, w whsthar It is naourrary for the 

oorporablon to tlls another exWi%si~n oi existenOe ulth 

thi e ot~los. 

Tou wlli reoail that in your opinion NO? ,,o-3254, 

you held that the Texas Indspeghnoe Life Inrurknee Come 

oould not renew its OOrpCUTit8 &Ki8tOROe under tb, prOYi8iOM 

of Artiole 1315 a and b. 

*'We should like an oplnl&n ~TW fan as to whether 

the ohwter oi tha aorporatioa I8 now in good 8ttukdlag 

under the 13uper9i8lon of the Iasux~oa~ Do rtmant 80 that 

no further aman&monta no84 be ill& l.n thr e otiioe, or 

whether the ohartsr &dmte6 by this ofiioo haa explrml by 

it8 am &@69i8lMI) Md i&et OMW ill aOOO~UlOO tith th. 

proY~8ton8 ti Artiole 1315.' 

Aoccx~~panylag YOUX Xeq\iOd ,X0 8 ghOt@8%8tiO OWrtiiiOd 

g8py of the 4aaendarent dated the tint day or June, 1927, tiled 

wlah tha Seoratary or Stat0 on Inno 29, 1927, and with the Do artment oi In~uranoa on the 16th by ot Jana* 2927, and a oertli P od 

gthotortatlo copy oi a later aamndaurt, dated the 13th day of 

May, 1937, illad In the Departmat oi Inraranoo. A8 to thla 

later aaandment we aasume that it h88 boon prrseatsb to four 

~Departsent tar flline. 

The 8tatute8 ralatin& t0 amending and Wtadtig 

Chartera Of private GOIFpOra~fOtl8 St&k aa the One here fnYolVed 

ore &tloles 1314 and 1315, VeI%On’8 Annotated clril Statutea. 

Artiole 1311 from the R. C. 8. 1925, fn part, readar 

“Any private oorporatim mpnlmd or inoorporateb 

for my purpose mentioned in thi8 title, mar WSnd OX @hang* 

lts charter or aob ot lnoorporation by flliag, authentioatob 

In the manner as the orlglnai OhaFter, suoh ammlmmt8 OT 

&ages with the Sooretary of liltate.* 
.san. W. J. Lawson, page 3 

Artlala 1315 of said 8tatutes praridalrt 

Worposations created for the oupport of benmlent, 

eherltable, eduoational or rrrlssloaary undertakinjis, the 

support of nqp literary or soientiflo uuderteking, the 

wsintemnoe of a library ) or the pronotion or palnting, 

mueio or other fins arts, wh&se chartor h&r expired by 

limltstloa, may revive euh ohartor with all the prtriloge8 and i~uaunltfe8 am3 rlght8 of property, real and 

psrronal, exorolsei7 en& held by it dt the date of she 

ezpiretlon of its '#i& oherter, by filing, with this 

oonasnt of 8 majority of fte rrteokho,ldem, a now ohartr 

uudcr the prorislons of thin ohapter, roaltlng therein 

8uob original pririleges and l0timiitie8 8nU right8 of 

property, and by filing therllnrlth a oatlfled oopy of 

such ortginal expirea ohart*t.* 

Before engaging in a 8t8oomrion ot tho quution 

ralaod, pM8umab~y laflaenoed by Orrr heldting in o 

oled by you, m oall your attention to the faot e 

ianion O-3254 

hat in raid 

0pi~i0.a we weme disouasina; 8 OOrpOration whose 8Ob bu8iae88 

and uot up ma nithla the rsqulrexaantr of Hotme Bill 903, 

Qrd Leg. (Chap. 8a, Title 78, R.C.S.), oarr 

%i 

on a stat* 

ddr bu8lnus af. mittually prctteotlng or lnrrru’, the live0 or 

fta imBbU8 buy a8808iSJilOilt8. Such a oorpontiQa;~wu raqulred 

to eo1a~4 with thcl prOvirbXm 6f tiil8 bill By Setitiioa 14 of 

tha law or hats l%a ohuter, &paaimd under the genmav~l law,. 

repuled m rat&cod. 'i'h18 law, nD pointed out in the opii3la0, 

oapld not aperats to rapeal or ruoke an sxlatiag ohartw 

pre~lou5ly granted prior to ltr expiration withwit atiering 

lt an opportunity to wmtinue b\ulnasa under the aeu +egul.atory 

3Aw. The opinion is not appU,cmblr to the Oer oratloa under 

axdduation here, whioh, by @m plairr.~prQti8 i on8 Ot it8 

ahartu, opratss under Chapter 8, Titla.78, of the statute8 

applloablo to fratarnal benefit *oolcsties. 

32-0 hero rmhsr demBrlaLAed .rrcmth8 rOOOrd8 ill 

your off100 thst shortly after the ariaotmtmt~ of Chsp. 113, 

Aots &9X3, an act def+kLfng a fmternalbmaflt 8ooiety 

(art. 4620 3.C.s.). en afffdattt uaa iFled reocagaiaing the 

applieablllty of that law to the oorporstion; ad w* furthar 

au8uam that under the pr@risioxae and aamndmento Of the 191) 

aot au thea and presently applioabla to frateraal baneSit 

aooleties the Xasuranoe~Departmes&t har rooogalmd lte axistenae 

and eo oonduoted lte auperrls%oa, duly issuing to the order aa 

annual lieenrs to oofiduot Its bu8fnSCe as a fraternal buttilt 

6oolsty. 
P 

Briefly tmoing the history ot chapter 8, Tltle 78, 

appllaable to fraternal benefit a~sooletlona, the flret mot 

passed euthorlxlng their lnsoil;oration 8s suoh and d8tlalng 

fraternal beaefft s~~istlma mm by the 26th Laglelature, Aeta 

1899, Chap. Xl5 This law ,nrovlCed In Subsestlon 6 of See. u 

that srtlolea of incorporation should Btbte the terre of oarporete exlstenae, not to exoeed fifty yews, and required that 

the charter be,filed with the Sebrnknrp 82 Stata. 14 further 

provide% that suoh oharter may be amendo% et any tlm by f1Xn1~ 

with the SeoretaPy or state the derlred amndmente,lyey$ry 

eohnowledged, ee requlrsb In obtalnina a ohartnr. 

wcmW, this as&Ion provided for the ikoorporatlws and the 

Imuanse of ohvrtera to fpaternal benefit soaletles; In 

aeotlon 2 thereof it provided for the oontlnulaE ofb~lhesa 

of all aeaoelatlons'eomlng under its provisions then doirrg 

huslneac but plaaed said a8so6latlons under the rups~rfnlon 

cf the kaalrs~oner~.of &?urarrce in reapeot to tllins annual 

reports and m&e. thr;a 0ubJwt to sxcmination and certain regulatlona by the Coemlssiom&'. 

Ths foreSoin&aot was repealed by Aots, ot 1909, 

t%npter 36, First C~lls%~Sersloa, 31st Legislature, belhg l 

iDore oovaprehetis~ve QRO and in Scot+ 14 thereat it 

ai? 

l ser vd 

80 those corporationa then angaged in the bualnur OS 8hO 

right*, powers and privllegss exeroieed or poarasaed under 

its charter OF artiolea oi amooietion, not inconrl8teat with 

the eat and offering to'ruah oorporatione the right to reinearporete thereunder. Theas were not required to reineorpooratcr 

eor required in their ohartex to adopt the pr~vislons for 

Qr$eedlg n#r assoolett Oi36.r 

Tke Lcgls$attx~e in 1913, by an sot of the 33rd 

Le6lrlatww, Chagtor lJ.3, repealed the 1909 not, whloh later 

euieotmeot, with subaeqasnt amen~ent~ to tsrlow 8eatianR, 

constitute our'grosent Uha_ater 8, Title 78, V.A.C.B, SeOtlea 13 

thereof, appearing in Temmn*s en Brtlole 4839, atibdanbidly 

bxpreaeeta the eem purpoee and hes the taaine &teat a8'SW. 1C 

of the E,Ot of 1909, In prcvidlng thet any oooletl aaaagdl at 

the tf.xe in trans$tatlng bualneas In the State say eZavQi#O 

aill of the righta, powers and privllsgos theu exe~'slead or 

OSS~S~~ by it w%e~ its charter mot lneoneistent with the 

1913 sot, lf 1noorporatcsU. 
Iian. x. J. Lawson, pa8e 5 

It eeome oleu iron ths rorsgoing examination Qf 

the law epplioable to fret6rna.l beneflt sooiefles et dlff~ent 

psslads throughout its history that such corporations as the 

Grand Lodge of the Order of the Sons of Her&m ia the State 

of Texas, iae@y orated ior the purpose of a benev’clent eduoationel or cQgr.i e able undrrtekin~, prior to the sot of 1499, 

were never lnts&ed by the Legislature nor required to aerge 

their rlghte aad priyile(t44 granted under Chap, 8, Title 76 

of our innureno~ laws.’ .The lawaaki~ bcdlee epparently reaognlzlbd that aor~~aticus w!mss purpoeee eye ohulteble or bsneyoLe.nt say aoquite rights end traheeot business without the doing 

oi en lneuranoe bueinaes. A glene4 et the purpcee provision4 

of the original oharter of the Order nlth rhioh we are ocnaermd 

ehcwe the dual purpose, to pap health and death benefits to mambera ahd their beneflolarie4 en4 *to ersot and maintain e hum 

for old aad needy members of the order end for the erphans of 

members of the 0rZer.C 

It will mther be noted that Ayt. 485 

P 

R.C.S.* 

(m3. 30 of the 1931jk!bt), exampt8 froks lte ~proyle one oertelu 

aooietiee einllar to .@and ox subordinate lodgee of Mesons, 

Odd Lfsllowe cm Tni~hts oi Fythlae, which do not is6us~insurence 

eertlficetea. Furthers&ore, any suoh oorporaBion nmy forielt 

it4 anmel ~permit to do mn 5mlnanoe buelnesa es a fraternal 

benefit rooiety upoaehy numbar ai grounda eat out uader Chap. 6, 

Title 78, of the lnatxranee laws anb et111 robin ltr corpomte 

exlatence under thn proylalons of its aherter issued by the 

Seoretarp of State uader the esarrel law. 

Trusting that we haye rmde ourselves oleer with 

respect to &lstlngulahlng between the typa of oorpoPetlon In- 

~olycd 1:: our opinion ED. O-325b end the one here pr4~4IOM 

for oonel6eratlou, we ‘pr+ueed to the real end o~lp queatloQ 

with whloh you ara oonoorned, towit, whether the charter *anted 

by the Seoretsry of State has expired by ita own terms W QIlSt 

be ramrod 1.n aooordanoe with the provisicna of AstiC. 1315, 

I?. c. s. 

Rrtlole 1315, supra, prmides ior the revival o? 

ohmtera of suoh aorporatlone oreeted for the suppcrt of beheyolsnt, oharitable, eduoatlonal or miaeiontarp undertakinga, eto. 
Hon. W. J. Lewmm, pegs 6 

in our opinion MO. 04,085, approved ehl eddmmsed to you undw 

date of Oat. 16, 19&l, we held thet the ohartar of a aorporetion areated under the ae%e purpose aleuse may be revived after 

five years fraa the date the charter had expired. Opinion Eo. 

&&OOJ, therefore, ia applicable to the corporatfoli under eonrideration. 

It is thererore the oplnlon of thla Ds~rt?nent 

that e oorporatlon ohartared for the aupport of any benevolent, 

eherltable, eduoetlanal or lalssionery underlieking, and whioh 

operstes subject to Chap. 8, Title 78, F..I.C.S,, aLo a l’raternel 

benefit’ aooietr, ia not euthorlaed to extend the period of its 

oorporate exlatenas by amenUment illed with the Iasuranoe Commiaeion. A oompllaaae with the provllrlo~ of Chap. 8, Title 78, 

nil1 not sutfiae as a oomplienoe wlth the general lewu for maintaining its aqrporate exlstenoe ar e ohmlteble or benevolent 

eorpmatlon. The charter of the Wend Lodge of the Cmler of 

the Sanu of Herman in the State bi Texas having expired 88 e 

benevolent or ohultable oorporation, It nay be revived in eoeerdanoe tith the prorisionu of Artlole 1315, Ravlsed Civil Statutea. 

Yours vary truly