<html xmlns="http://www.w3.org/1999/xhtml">
<head>
<meta name="pdf:PDFVersion" content="1.2">
<meta name="xmp:CreatorTool" content="Acrobat Capture Server 2.0">
<meta name="pdf:hasXFA" content="false">
<meta name="access_permission:modify_annotations" content="true">
<meta name="dc:creator" content="capture">
<meta name="dcterms:created" content="1998-06-10T16:14:56Z">
<meta name="dcterms:modified" content="1998-06-10T16:15:05Z">
<meta name="dc:format" content="application/pdf; version=1.2">
<meta name="pdf:docinfo:creator_tool" content="Acrobat Capture Server 2.0">
<meta name="access_permission:fill_in_form" content="true">
<meta name="pdf:docinfo:modified" content="1998-06-10T16:15:05Z">
<meta name="pdf:hasCollection" content="false">
<meta name="pdf:encrypted" content="false">
<meta name="Content-Length" content="194135">
<meta name="pdf:hasMarkedContent" content="false">
<meta name="Content-Type" content="application/pdf">
<meta name="access_permission:can_print_faithful" content="true">
<meta name="pdf:docinfo:creator" content="capture">
<meta name="pdf:producer" content="Acrobat PDFWriter 3.02 for Windows NT">
<meta name="access_permission:extract_for_accessibility" content="true">
<meta name="access_permission:assemble_document" content="true">
<meta name="xmpTPg:NPages" content="4">
<meta name="pdf:hasXMP" content="false">
<meta name="access_permission:extract_content" content="true">
<meta name="access_permission:can_print" content="true">
<meta name="X-TIKA:Parsed-By" content="org.apache.tika.parser.DefaultParser">
<meta name="X-TIKA:Parsed-By" content="org.apache.tika.parser.pdf.PDFParser">
<meta name="access_permission:can_modify" content="true">
<meta name="pdf:docinfo:producer" content="Acrobat PDFWriter 3.02 for Windows NT">
<meta name="pdf:docinfo:created" content="1998-06-10T16:14:56Z">
<title></title>
</head>
<body><div class="page"><p></p>
<p>OFFICE OF THE AlTORNEY GENERAL OF TEXAS 
AUSTIN </p>
<p></p>
</div>
<div class="page"><p></p>
<div class="ocr">we 648

Koemorable li. (. Flowers « page 2

ths sanc act, ami ex corporations arran-
deed for @ purpose ar to Subdivision <7
of Article 1962. It bas been tha aseumption
of tiis dapartront shat Articlo 1969 allowed
corporations to bayve for thodir prisary por-
tho owning of titles to lan? in cities,
t not rural lends. So far as we can deter-
ring, thors bas nover bécen an opinion by your
aopartront en this point, am! before the core
poration is granted a charter a3 should liie
an J azreoseion fron. your dereartroant on this
Po Be

"The propesad corporation plans te use
as ite purpose clause Section 47 cf Article
1362, but, as statod to us, they will not
be ongaged in selling those sro 298 Oke
eopt whore lami it has | DeCeKIE Une
desirable for use by an affiliated corporation."

A charter cay bo iscued, cf coures, fer those yur-
poses only that are oxprossly autberizo’d by statato. The

application for a r umtor subdivision ¢7 cf article
1308 of tho Roviged Givyil Statutes, is, of course, for a
FUrposs s authorised, ant giould be granted un-

leas thea losura ende to you by the applicante forbids.

the pertinent part of Subdivision 47, upon which |
the ap rely for authority to transact their busi~
HOSS» the power “ta purchase, sell and eubdivice real
property in tome, cities and villages, and their suburbs
not extending more than tro miles beyond their Limits ,*
We construe this languars to authorize cor tions to
envare in the business cf promoting aubdivieions of roal
property in towns, cities ami villages and thoir suburbs,
ané not in the general business of buying and aeelling reat
estate within such territory. While literally the 1
here,"to putchass, 601] ani subdivide real property§ might
perecit the contemplate! activitias of applicants, tha oh
vious ceaning ia exemplified by trangpesing the words "sell
and sublivide® so as purpose clause would read *to pur
chase, subdivide and sell resl preparty$ ote. That is, the
authority to sell should bo construsd im connecticn vith
the authority to subdivide, ani, cf course, ie nocssserily
incidental to the power to promote such subiivisicn.
</div>

</div>
<div class="page"><p></p>
<div class="ocr">649

Homerable Le ie Flovern = paces 3

Gur construction of gubd4vigion 47 ia o reason~
abio ono ond is cenmpolled, te think, by other portinent
parts of these statutes.

article 1962 of the statutes prowidenrs

"No pedvatc cerporution heretofore
or hereafter chartorot on Sroatod whosa
gain purpese of business is tho acquist-
tion or ownership of lanl by yurchase,
lease or ctherwisa, shall hereafter be
porritted to acquire any lami vithin
baryons State by purchase, idase or other-

Articl¢ 1949 makos an exception from the -oneral
rule proscribed in Article 1962 se an to ahthor-

ise tho incorporation provided for by Subdivision 47, above
quoted, and is as follogse

“Nothing in this chapter shalt bs
conatruad to yrobibit the lease, purekase,
gale or subdivision of real property with-
in incorporated towns, cities or villages,
and their suburte not extentiing more than
two ciles beyond their corporate Licits,
by corporations those charters authorize

to lease, purchaso, 9011 and mibdivide
real ostate, within towns, cities ani yvil-
Lares, and their suburba, whether thair
suburbs bo stetad te bo maacured from tha
lirits morely, or the corporate lirite, of
such towns, cities emi villages. Ali such
corporations now existinc, cr which my be
hereafter created shall be authorized te
lease, sell or subdivide real property in
ang unincorporated city, town er villarce,
or the suburbs theroc?, within this State,
not oxcesting tvo silos in any diroction
fron the courthouse, or depot nesrast tho
conter of sneh city, town or village, or
fron the center thoregat, if there be no
courthouse or dapot.*

Tha obvious purpose end policy of cur lar is to
forhdd corporate acquisition ami ounarship of land in Tome,
emcept, ef course, 65 such ermnership is expresely, or by
</div>

</div>
<div class="page"><p></p>
<p>=-z& 
ATTORNEY GENERAL </p>
<p></p>
</div>
</body></html>