**OF ’** **kICZ OF**  **THE ATTORNEY**  **GENERAL OF**  TEXAS **AUSTIN**

**Dear air:**  

### ,;“\ \ \ Opinion no..4%55$6 R45: May tb0 00rarlc te a payableXalg_ out b? surplus, in 

### tlie$o

“\ ,/ .gwbposoU be lsgarjy issued 

### and sold bi\the / ‘Jsion ‘~rservve Life In-
<.’ ./ ‘8llrml00 $ompany , inoor-

. . . ‘

. poratedxunder Chapter 3, Title .4e of the Revised

. ..-. ./ \, Y Girt.1 etatutes BP amend-

”e&j x‘

.. Your i0tter.a >Auguet 19,~.l9+3, requesting 

### the opinion of this departmnt on 

### the abovs/stated question is aa follows: 1’~ ‘,.‘., ‘

.

“Ih myletter of August 14, I forwarded to,&u a‘+py of ‘correspondence between Honorabie,$ae~er Moore aqd ,~thewriter with rererence

,‘to a 

### p~opoadd,.rorm or”oertlfloate to be rold by ilJuion tieserve Lire Insurance Compsny payable from

‘its surplus:.. Additional oopiea lncludlne the surplus certifioate are enclosed for your ready 

### rerereooe;.. Mr. ~ItIsorehas requested me to rerer the mstter to you. Copy of the request and copy 0r the xmicler of laoorporatlon 0r the insurance company are encloscd. “Till. you pLeaae advise m wnethsr the certificate payable oqly out of surplus, in the form proposed, ray be legzlly issued md sold by Union AeserVe Lif0 Insurance CocIpauy, incorporatad under Chapter 3, Title 78 of the Heviaed Civil statutes a8 mended7”The proporrd oertliioate 

### under ooneideratlon readr an follow8:

“THIS CERTIFIES that John Doe, the holder hereor, ha8 pald Into thr 8urplur of UNIONRESEW ’S U.F% I!WiiCE CONPm, herelnsrter oallcd 

### 'COmpaayr* the mm 

### or Dollarm,#

4 ), and the Company

### agree8 to pa intereat thereon at tb rate o?five per oent (bj I 

### perannum la the manner hereinafter net forth. fnterost la payable on the first day8 of January 

### an&! July or 

### eaohmar. The prinoipal is payable on the day 

### or - io Pallure to Tan7 lnnstallment when due’rha-t th8 option of the owner or holder hereof, 

### mature the 

### prlnolpal, together with all intereat then 

### due.

*A8 to th8 Compauy, thie Certfiloate 18 payable only out 

### or the 8urplur OSthe Company and no other asset8 of the Company8hsll ever be llabb thereror.



### ‘For value reoelved, the payment of all prinolpal und Intereat ln the amount8 and at the tim8 stated above i8 hereby guarauteed unoondltlonally **by** Charlea A. ;doCormiok oi Austin, Texa8.

*In oaae 

### orthe llquldatlon or the Company, and a8 between th8 stockholder8 and oertlrloate holder8, the right8 oi the Certificate Holders ahall be 

### inall thing8 wperior 

### to the right8 of the Stookholder8 or the Company. ing ii “Thir la one or a‘number of oertlfioatem. totalprincl2al all due a8 to prlncipal and interest at the aame time a8 i8 this Certirloate.

“The iesuanoe ot thl8 Certlricate ha8 been authorized and dlreoted by the unanimoun vote of all the stook ot the Colpany, and by the uuanlmoue vote or the Directors of the Company.Zionorablo 0. P. LookhArt, pueo 3 

# 720

*IN 1IzN”;Stl ‘XER~OOB,The Union 288ene Lite Inruranoe Companyham oausrd thir Certifi

### cate to be aigned **by** 

### It8 duly authorized oi

### rioerr and 

### ltm Oorpotate seal to be 

### horaunta aftiX8d thl8 

### dayor A 19-0

“Oharlom A. UoColalOk oi 

### Auetin,. Texam, hereby afiixes him mignature herato amuzkoonditional guarantor o? tha pwmmnt of thir 

### Certl

### r*08te, aooordlng to it8 tenor and 

### 8rr46t.*

%ethlnlc that the surplus certirlcate proposed by the 

### UnionHeaerve Llfo Inruranos Company oan be dlstinp,ulshed rrom the oertirioate oi the Century Life Inauranoe Company whioh was 

### dimapproveddn.OaTOplniOn No. O-1814.

It IS oonorded in our Opinion No. O-1814 that the right to 

### borrow money 18 inherent in a oorporation, mubjeot, however, to the limit ations whioh may be placed u.pon it the

.. 1~~s of the goverment to which it is responsible. Ry issuing and selling the above mentioned oertlrloate the Union Reserve Life Insurance Company seek8 to exerolsa it8 premgstlte am a corporation to borrow .mney, but meek8 to ooatraot with those rro3 rhom It may borrow mney, that such money will 

### be paid back at a partioulsr time, and bear a particular rate of innreat, but that it will be paid baok,only rroln a apeoial

. page 505r. It Is stated 

### by Couoh on Insurance in Volum8 1,

as * * 

### amag the oorporata powars enJoyed by a oorporatlon famed to oarry on insurance business my be meatloned the right to aoquire ad bold such roal estate as Is necessary and proper for futurs use in aarrylng on it.8 business, to borrow money toepay lossem, or to protect its asseta. + * l” (To the sa;pb errsot see Am, Jur., vol. 29, p. 84)
The attorney for 

### the Union iieserve Life Insurance Company lnrorms urnby various letter8 written to us in oonneo-

### ;ioonorsble 0. 2. Loolrhrrt, 

### pdge4

tion with the question 

### underoonsideratlon 

### that ths proposed certificates 

### arenottobsaolQ to ths pub110 gemsrally but -dl?Sto bs aold to a very Lisitad i?JKCber Oi psCSon8, 

### sad that 

### the proposed certificates 

### are not to be larksted in such a way as to oom within ths tsrm8 of ths 3aOurltie8 AOt. In oonnsotlm with the rorsgolng 

### statmeat it 

### irto 

### be understood that ws sxprss8 no 

### oplnloa rhsther suoh propossd osrtitloats8 ars srouritles within 

### theabasing of 

### thsSaouritler Aot. This 

### is a utter 

### to bedsteralned by 

### the Secretary 

### of Stat*.

It is 

### oonosdsdalso 10 

### theOorrsspondsnos of ths 

### attorneyabovs msntloaed 

### that “it is 

### not eontsnplated anf Mfloer. or direotor of ths Companywill purchase any of ths propass osrtif ioates,w

In answer to the above stated question you am respeotiullJ edrissd that there la 

### no statute prohibltfng an lnsursnos oompauy suoh as the Union Reaervs Wfe Snsuranos Cospang 

### from borrowing raonsy in ths nanasr 

### propossdby said ~ompuny

### by the 

### iaeuanos of said proposed oertlfloatsr nhloh

- ars nsrs 

### evidence of tbo money borrowed 

### by

### saidCompany. Yours rsry truly



### ByvArdsll Ullliams ~sslstaat