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### THE ATTORNEY GENERAL OFTEXAS

HonMable ReubenWllliedm, Chairman Board of Inmurf&Me CcmImlfmionere Aue tin, Texan Dear SIrI 

### opinion 100. o-3116 Rer May a suretyoompaaynuoh as southern

Guaranty

ocrmpany,

Ltd., beocm rurety upon any bond required

**by** a oity ordinanoe? Your reoent requeet for an opinionof this department upm the above stated question haa been reoeived. We quote from your lettera8 followsz "Please

advise this Departientif, 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 RevisedCivil Statutes of Texas,

may become suretyupon 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 requiredto be givenunder the laws of thiti State, any other statuteto the aontrary notwithstanding.'" Article**4982,** Vernon'8 Annotated

Civil Statutes,

reads aa follows: "Any personsor 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 relatingto insurance other then life, may exercisethe following powersby complying with the provisions

of this sub-division: "1, Qualifya* guardian, curator,

executor,

administrator, assignee,

receiver,

trustee

by appointient

of any court or underwill, or depoeftory of money in court,withoutgiving bond aa such.- .

“2. Beeme Bole guarantor or sure@’ Ln UP upOn any bond requiredto 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 CompanyOf &tUtfn, Texae, ie a m%n,oo~arated ~o%mt +tmk ~c~mpala~ rgmfeea under Chapter 2, Title 105) of .&e Rev%sedCivil Skatuutes of Texas,and has qublified, underArtlolee 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~ 1s legauy authorized ,to qualiry

under kt%rnles4982 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, abovementimed, KIO~ tie authorit of the mnqm-q involved

to quaU.fyzmder the provfsfons of Artiolee4982 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, ,Doeathe tern %aclude

a 6fty ord:%nanoe?

We think %% &nm. A city opdkmrme wa@ defiaaed

by the Court of C%v%lAppeaU# 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 abovementfoned statute. Therefore, we respsetfuLIy

answer tie above &ted question%n the abffnmatfve.Honorable ReubenWillfaplls,

Page 3 (O-3116)

Trustingthat the foregoIng ftd2.y amwers your inquiry, we are

. Youre very truly, ATTom GmmALoFTEIAs

APPROVED

b!AR PO, 1941 /af GeraldC. MannA-G-OFAPPROVED OPIWIOW G- BY /e/B,W.B. CHATllMAn