## 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 opinionor this Deprtment,

sbo9e nsmed 0 ahortor *or0 .
&mated to the

fo oopy or that anal&~

of CNr as8ootatlonrhall 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 filedwith 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 ameadmantthat tNa corporation

does a fraternalbenefit insurance bmlness, and as such is under the supervisionof the Inauraaoe cwullsslon.

-The questionwhahioh ia raisa4 by this **altuatlon** is whether the Slllne of the amandm~ntwith tha **fnruranoo** commissionextendedthe oorporatesrlatanoefifty **year8** frou May 28, 1937, w whsthar It is naourrary for the oorporablon

to tlls another exWi%si~noi 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 oouldnot 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 nowin good 8ttukdlag under the **13uper9i8lon** of the Iasux~oa~Do rtmant 80 that

no furtheraman&montano84be 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, andwith the Do artment oi In~uranoaon 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 8tatute8ralatin& t0 amending**and** Wtadtig
**Chartera Of**  **private GOIFpOra~fOtl8**  **St&k** aa the One here fnYolVed

ore &tloles 1314 **and** 1315, **VeI%On ’** **8** Annotatedclril 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 orlglnaiOhaFter,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 supportof nqp literary or soientiflouuderteking, the wsintemnoe of a library ) or the 

## pronotion or palnting, mueio or other fins arts, wh&se chartorh&r expiredby 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 ezpiretlonof its '#i& oherter,**by** filing,with this oonasnt of 8 majority of fte rrteokho,ldem, a now ohartr **uudcr** the prorislons of thin ohapter,roaltlngtherein 8uob originalpririleges 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 eianion 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~4with 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'h18law, 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 on8 Ot it8 i **ahartu,** opratss under Chapter 8, Titla.78,of the statute8 applloabloto fratarnalbenefit *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 applioablato frateraal**baneSit** aooleties the Xasuranoe~Departmes&t har rooogalmd lte axistenae and eo oonduotedlte auperrls%oa, duly issuing to the order aa annual lieenrs to oofiduot Its bu8fnSCeas a fraternal buttilt 6oolsty.

# P Briefly tmoing the history ot chapter 8, Tltle 78,

appllaableto fraternalbenefit a~sooletlona, the flret mot passed euthorlxlngtheir lnsoil;oration 8s suoh and d8tlalng fraternalbeaefft s~~istlma mm by the 26th Laglelature, Aeta 1899, Chap. Xl5 This law ,nrovlCed In Subsestlon6 of See. u that srtlolea of incorporationshould Btbte the terre of oarporete exlstenae,not to exoeed fifty yews, and required that the charterbe,filedwith the Sebrnknrp 82 Stata. 14 further provide%that suoh ohartermay be **amendo%** et any tlm by f1Xn1~ with the SeoretaPyor 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 ohvrterato fpaternal benefit soaletles; In aeotlon 2 thereof it provided for the oontlnulaE ofb~lhesa **of** all aeaoelatlons'eomlng under its provisionsthen doirrg huslneacbut plaaed said a8so6latlonsunder the rups~rfnlon cf the kaalrs~oner~.of &?urarrce

### in reapeot to tllins annual reports and m&e. thr;a 0ubJwt to sxcmination and certainregulatlona 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 servd 80 those corporationathen angaged in the bualnur OS 8hO right*,powers and privllegss **exeroieed or**  **poarasaed under**  its charterOF artioleaoi 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~vislonsfor 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 subaeqasntamen~ent~ to tsrlow 8eatianR, constituteour'grosentUha_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 aaaagdlat the tf.xe

in trans$tatlng

bualneas In the State say eZavQi#O aill of the righta, powers and privllsgostheu exe~'slead or OSS~S~~ by it w%e~ its chartermot lneoneistent with the 1913 sot, lf 1noorporatcsU.Iian.

x. J. Lawson, pa8e 5

It eeome oleu iron ths rorsgoing examinationQf the law epplioable to fret6rna.l beneflt sooiefleset dlff~ent pssladsthroughout its history that such corporationsas 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 eable undrrtekin~, prior to the sot of 1499,

were **never** lnts&ed by the Legislaturenor required to aerge their rlghte aad priyile(t44 grantedunder Chap, 8, Title 76 of our innureno~laws.’ .The lawaaki~ bcdlee epparentlyreaognlzlbd that aor~~aticus w!mss purpoeeeeye ohulteble **or** bsneyoLe.nt say aoquite rights end traheeotbusinesswithout the **doing** oi en lneuranoebueinaes. **A** glene4 et the purpcee provision4 of the original oharter of the Ordernlth 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), exampt8froks lte ~proyle

one oertelu aooietiee einllar to .@and ox subordinatelodgee 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 exlatenceunder thn proylalons of its aherter issued by the Seoretarp of State uader the esarrel law.

Trusting that we haye rmde ourselvesoleer with respect to &lstlngulahlng between the typa of **oorpoPetlon** In- ~olycd 1::

our opinionED. 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 Seoretsryof State has expiredby ita own terms W QIlSt be ramrod 1.n

aooordanoewith the provisicnaof AstiC. 1315, I?. c. s.

**Rrtlole** 1315, supra, prmides ior the revival o? ohmtera of suoh aorporatlone oreeted for the suppcrt of beheyolsnt, oharitable,eduoatlonalor 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 charterhad expired. OpinionEo. &&OOJ, therefore,ia applicableto the corporatfoli under eonrideration.

It is thererorethe oplnlon of thla Ds~rt?nent that e oorporatlonohartaredfor the aupport of any benevolent, eherltable,eduoetlanalor lalssionery underlieking,

and whioh operstes subject to Chap. 8, Title 78, F..I.C.S,, aLo a l’raternel benefit’ aooietr, ia not euthorlaedto extend the period of its oorporateexlatenasby amenUmentilledwith the IasuranoeCommiaeion. A oompllaaae with the provllrlo~ of Chap. 8, Title 78, nil1 not sutfiae as a oomplienoe wlth the general lewu for maintaining its aqrporate exlstenoear e ohmlteble or benevolent eorpmatlon. The charterof 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 prorisionuof Artlole 1315, Ravlsed Civil Statutea.

Yours vary truly