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THE ATTORNEY GENERAL 

OFTEXAS 

HonMable Reuben Wllliedm, Chairman 

Board of Inmurf&Me CcmImlfmionere 

Aue tin, Texan 

Dear SIrI opinion 100. o-3116 

Rer May a surety oompaay nuoh as 

southern Guaranty ocrmpany, Ltd., 

beocm rurety upon any bond 

required by a oity ordinanoe? 

Your reoent requeet for an opinion of this department upm the 

above stated question haa been reoeived. 

We quote from your letter a8 followsz 

"Please advise this Departient if, in your opinion, 

a surety company'euch aa the Southern Guaranty Company, 

Ltd., Austin, Texas, orgtiized under the provisions of 

Chapter 16, Artfale 4982, Vernon's Revised Civil Statutes 

of Texas, may become surety upon any bond required by 

city ordinance. 

"In this cc$mectfon, we wish to eall your attention 

to paragraph 2 nnder Article 4982 which states such 

corporations may ,'Eeconre Bole guarantor or surety in or 

upon any bond required to be given under the laws of thiti 

State, any other statute to the aontrary notwithstanding.'" 

Article 4982, Vernon'8 Annotated Civil Statutes, reads aa 

follows: 

"Any persons or association of persons, any atate 

banicfng corporation or any other domestic oorporation, or 

any corporation organized under the lava of any other 

State, provided euch foreign corporation complies with 

the laws of this State relating to insurance other then 

life, may exercise the following powers by complying with 

the provisions of this sub-division: 

"1, Qualify a* guardian, curator, executor, administrator, 

assignee, receiver, trustee by appointient of any court or 

under will, or depoeftory of money in court, without giving 

bond aa such. 
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“2. Beeme Bole guarantor or sure@’ Ln UP upOn 

any bond required to be given mder the laws of th%a 

Sta,t.e, any other stakte to the coatrarg notwithataadlng.” 

We are %riformed tiat the Soutbem Gmranty Company Of &tUtfn, 

Texae, ie a m%n,oo~arated ~o%mt +tmk ~c~mpala~rgmfeea under Chapter 

2, Title 105) of .&e Rev%sed Civil Skatuutes of Texas, and has qublified, 

under Artlolee 4982 aml 4983, Vernonp~ Annotated Civil Statutee and 

complied with the psot%s%ms of these ststuteB. The oompany hae a permit 

frcmr the Saourft.%ee D%v%s%m of tie Qff%ce OS the Seeretsry of Stste, and 

a pemft from the Insurance Department d;~thor%zirrg said capany to do 

busfiess aa prov%uIed by Artiole 4982. 

For the p~rposee of thla opinfon, we emmne that the kmmnee 

Depar+am&, IS h&&.lJ a-st?norireQ 63 91xw or gP3n% a pelm%% or l&xme 

to the Smtiern Gnarmty Ccmpemg to a.0 bWfim3E UndeP Art%0 1e 

4982 wu uat Bald ccmpanpg~ 1slegauy authorized ,to qualiry under 

kt%rnles 4982 and 4983. However, %h%e op%n%on is not to be ownstrued 

M pamsing upon the authority of the Immranee Daparkient to fssue or 

grant the permit or l%oenm, above mentimed, KIO~ tie authorit of the 

mnqm-q involved to quaU.fy zmder the provfsfons of Artiolee 4982 and 4983, 

The armwer to your question depends upon the meaning of the term 

“Baws of tbfe State” as used in Seot%on 2 of Artfele 4982, supra, ,Doea the 

tern %aclude a 6fty ord:%nanoe? We think %% &nm. A city opdkmrme wa@ 

defiaaed by the Court of C%v%l AppeaU# ert .4ma~illo, Texas, fn the e@.ee of 

Cho%se, et al vs. City cf DaUat3, 210 S.W. 753p ai4 f~n3imn 

As tibovti atab&, we believe that a efty ordinance mmes 

within the term w?Lm~ ~:f t&B Stake” aa used %n the above mentfoned 

statute. Therefore, we respsetfuLIy answer tie above &ted question %n 

the abffnmatfve. 
Honorable Reuben Willfaplls, Page 3 (O-3116) 

Trusting that the foregoIng ftd2.y amwers your inquiry, we are 

. 

Youre very truly, 

ATTom GmmALoFTEIAs 

APPROVED b!AR PO, 1941 

/af Gerald C. Mann 

A-G-OFAPPROVED OPIWIOW 

G- BY 

/e/B,W.B. CHATllMAn