i

nn 

### OFFICE OP 

# THEATTORNEY 

# GENERAL

AUSTIN.TEXAS Ovarruledby O;k587-a 

### /(.>, : i:fd I'

RonorsbleCI.

;:;. Lockhsrt,Chsirrlan Rosrdof InsuranceCommlsnioners Austin,Texas OpinionNo. O-4587 

### Deer 7lr: Ile : Incorporation

of titleinsurancecompaniesunderArticle 1302a, 

### as emended;powersand dutiesof theBoardof ZnsurancaCommisaionars toprescribe ratesandpolicyformsfor title insurancarisksoutsideofTexas; depositsandreservesrequired of suohoompanles;theirliabilityfor 

### franohisetaxes;filing feesrequired;ellgibllltyof propertyto be reodved 

### inpsyment of oapltalstockandsurplus.
We haveyourletterofrecantdaterequestingthe opinionof thisdepartmenton theabovesubjects, whiohlettersetsouteightseparatequestions. We alsohaveyour supplementalrequestmaklngcertainadditionsand explanationsin oonneotionwithquestion7 

### andaddinga ninthquestion,whiohquestionNo. 9 

### isdividedintotwelvesubheads.

lows: Your originalopinionrequestreadsinpartas folW!i%is is the firsttitleinsuranceoompsny attemptedto be formedunderArtiole1302aa8 amended (Acts1929,AletLeg.,Reg. Sess.p. 77, 

### Ch. I+0

as amendedbyActs1931, l&d Leg., 

### Rag. Sess.Ch.269 

### andbyActe1933, 

### l&d Lag., Reg.Sess.p. 750,Ch. 222). For ourguidance in the incorporetion, licensing,.examlnation and regulationof thiscompany,eswbllas similar oneswhichmaybe incorporatedin thefutureend companieswhichcameutierthenew legislation aboveciteduponits enactment, we requestyolrr opinionuponthefollowingpointsin oonnectfon with the construction ofArtiole13028as it now stands:n Your questionsarehereinafterstatedandanswered individually.

QuestionNo. 1 readsas follows:Hon. 0. B. Lockhart, page 2

nDoee thle Board have the legal power and duty ot prsearlblng polloy form5 for ~150 lo writlag titla insuranae outalde the State of Texas by oompanles operating under Article 1302aV Weassume that your phrase “title Insurance outside the state” means title insurance oontraots medo outside the state on property outside the stete.

Seotloua Nos. 3, 4 end 5 of Artiole 13020 reed em rollowB t *Sue. 

### 3. Corporations 80 formed, au ml1 ea foreign oorporatlons en8 those oreated under Subdivision 57, Artiole 1302, Qr tha Revised statutes of 1925, or under Chapter 18, Title 78, Bevised Statutes of 1925, or any otheo law in 60 2ar as the 

### buolne5scd either maybe a tltla lnsuranae bualneso, eholl operate in Tex%s, under * the oontrol and sunsrvielon 

### and under suoh nnlform rules and regi&tlone srSto ioraw of 

### pollales end underwriting oontraotti~ and premlume therefor, ae maybe from time to time.prascrlbe4 b the Board of Znauranoe Comdsslonere of Texas aJJ no Texas or foreign oorporat ion, whether &orperoted. under this eat or any other law ab the State of Texan, shall be permitted to Issue my title polioy ar mertg8go oertliloate or underOrrLting oontraot on Texas mepertz other thus under thla sot ana 

### under euoh rules and rewtlat1ons. X0 policy of title lnsuranae af guGfmtiee of any oheraoter on Texue titles shall be lseued or valld unless mitten by a oorporstion oaarplylog with all provisions oi and authariaed m: quellfled under this aot. Before an vfded for herein shall be fixed or rate weo L ed, roesonable netloe shall lsaue~, and c hearing atforded to the oompanles ai’feoted by this aot. Every oampunydoing business under thls act shall tile with the Board or Insurance 

### Odseioners the form rb guarantee, oertlfloate, mortgage polloy ar any polloy of title lnsuranos before the same shall be Issued, and the form must ba apwoved **by** tho Board, and be unlfara as to all compaaiee. Under no cironmstenoes mapasp oa1~0n~ use aBy ?orm until the same shall have been ausrivved bf he Boar& *The Board of Insurance Comailssionere &all have the right and It shall be its **duty to**  **fix** ati promulgate the rotas to **be** oharged by MI? poratlons created or opereting hereunder ir premiums on polloles or certliloates and underwrftlng oontraote, .The rate Zixed by the BoardEon. 0. P. Leekhart, page 3

shall be reaaohable tothe publle aad.non-eonfleoatory sa to the oaq~ny. For the purpose af aol.l.eotIng data on yhhh to datemIne the proper rates to be iixeb, the Boar& ahall have the right to require the ooqanies oporsting Iu 

### Texasto sa&$t.suah lnfomatlon In suah form as it mayd6iPlproper, all Ihfomation as to loss expsrIenoo, expense oi operation, and other material matter for Its oonslderation.

“Ratea when once fixed 

### shellnotbe changed until after a publIo heaxIng shall be had by tha Board, after proper not100 sent aih0t to all oompaniea interested In writing this buslnera; and after public hotloe in such manueras to give fair publioity thereto for twoweeks In advanoe. The Board must oall suoh heaxIng to oone$der rate ehmgee at the re writing tit10 lnauranoe,~or uest of a oompany i!r the Board thinks thst a ohango In rates may be roper. pany or other pcmeonLntoreeto ii zanyecm-

, reeling InJured by ang aotlon of the Roard with regard to rates, ahall hare the right to tile a,suIt In the DIatrlot Court of Travis ~Gounty, wIthin thhfrty’diya after the Roard hae madesuch order, to review the oatIon, In which auIt the oourt meg entor a 3, udgment correcting the Rosrb’s order and ilxry euoh rntes ae maybe proper, OFatfIrmIng the eotion o? the Board, Under no ciroumstanaea shall any rate of premium be 

### ohargedfor ,polIales or underwritIng oontraots bi.frew fkola those iI@ lina promulgated by the Board, or those fixed In a final judgment of the court ae herdn 

### provide&
"Sea.4. Gorporations organIze,b under the 

### lawoof any other State ahell,be permitted to do business In this State on exaotly the a~’ bssis **end.**subjeot to the sams rules, regulations adil priosa and supenlefon a8 fIxed for Texas oorporationa.

“980. 5. Anyforeign or Uomestio oorpora

### tionissuingenrformofpollogor u&erwrltlng 

### oontreotaor chargingany prtnnium rate8to thepublIoam eitherownern'ormortgageo*s 

### oertiilcatea

orunderwrItingoontractaonTexe8 other than forms and rates ~mfi d of Xnsursnee Gommlsaiormrs here1 remit St8 right to 40 b&Iiluaa In Temaa; but l&&e &all not be ooaatrued a8 t;;;;~g;g,g”~g ~~~~~t~?&~~I~
neem

### underthis aot anA*doIng a genoral tI$l* * Insurance busllnees ror the publIo In this Stat+Eon. 0. P. Lookhart, pega 4

far rd.nauringor underqltlng allor anypart 0r the buaInaa8 o? an+her auah oompany to be the sameas the ahare to the pabllo.* ?l#QhaaIa ours)

‘In the oase a? HewYork Title k Mortgega CompanyY. Tarver, 51 Fed. (2d) 584, a three judge Federal oourt in oonatruing Artiole 1302a held as iollowsr

‘That said Title Inauramta Aot 1s held to only relate to and iiieot ?ona o? polloles and prsmlum rates oi auah inauran0o, eto wIth3.n the state o? Texas, the 60Ing oi bus~n~sa within tha atate o? Taaaa; m&to be oxtra-terrltorlal In Its erreat, lrndaamooannot artrot tha form o? polIolee in use br oomplalnantr In other states than the state o? Texas fztrrates at premiumohargea on polioles wrItton outside tha atdt0 o? Texas not to be PSriOWed within this state. The atato of Teas hss the **power** to say what kind 0? title Inspran00 bualneas shall k pss-formpd in the state of Texas. Bothwoll et al. I, Buokbee, &TearsGo., 275 u. S. 2 74, M 8. 0% 124, 72 Ly.EQ. 277.” This opinion was wr/tten on a motion Sor an interlwutorp Injunction, and the oourt*a order was auatalmed by

,the Supreme hurt of the Unltod States in a memora8dat8oplnIon reported in 76 L. Ed. 922~.

The laat sentonoe In the ?Irat paragraph at 8aotIon 3 above emphasized I? atanaing 8lona sight be bjord ewxgh to oover polIap rorma wed outsldo a? this Stato in oonneotlon wfth out o? state property, But tho atatiute 8hould %a oonstrued from Its tour oornera, In the 0as0 o? G~erolal Standard Insuranoo Campanyv. Board o? Inmraoo CammlsaIemem, 34 9. WI,

### (26) 343 (error refused), the court raid:

*The &ard,aan axerolse on4 th0 authority oonferred upon It by law an ollar and unmiatakable terms andwill not be deeps to ba given 

### byimplloat%on nor can It be extond0d by Interenca but must be strlotlp ~onstruad.* Your questIon No, 1 Is amswerod In the nagative. Tour question No, 2 reads aa ?ollowar VfDoesthis Boerd have the legal 

### power and dut o? presoi+bing premlsm rates at wl&h oompaniee operating under artlole 13Q2a shall write title Insuraa0e rlakn outside o? Toxaa?* Waassume that your pa0 *tit18 Inauranee rlaka outside o? Texaa*‘maana title MuraM (10Ptraota madooutside the State on property 

### outside@ the Stat+~:Elm. 0. P. Lookhaxt, pago 5

You will note that Saotlon 5 of Axtlele 1302a pmvideo a penalty (fertelture of right to do bWI~a8 in Tens) fw any oorparatlon ahar&ag rates other thak those praaexlbod by tha Board on polIoIea on Tams picOpextlq It pmVIde8 no penalty for oharglng rates not 80 approved on property outside or Texas. Fox t&la reason and for the raa8ona sot out under question Ro. 1 your seaond question Is answered in the negative.

Your question No. 3 with subdIr2sIon (0) thereof omitted reads as r0u0wsr

“With reapsot to the QepOsIt or oaah os aeouxltles, regulxed by Seotlon 6 of the Aat equal to one-fourth of tho authorized aapltai at the oorporatlon: (a) Should this deposit k oonaidered a part of, or required In addltlon to, the aepltal steak of the Company? (b) In Saotlon 6 the daposlt la roqulred to be kept

‘with the Stab’Ea

“rd~~~s~hs~~~~~~~~~~~~ tory as arrr a nsme prorod br the Soard M Inaaranee &vmlsaiwera*, whexoas in SootIon 2 as anmadadtha aglpp(luiea axe granted osrtain prlvllagee with respaot to Inveataiant of portions of their oapltal atosk In abstraot plants in exowa of 50$ of the oap%- tal @took, provided that the7 maintain *with ’ the ala%Iam dea as OODr Prot&&d .Sn lot be met by keepping tha 

### deposit under the joint oantrol at tha State Treasurer and of thla Board?.

. . (6) Canthe seourltlea In this deposit IawfulLy aonaist of real estate, or notas or other obllgationa aaoured 

### by lten upon raal aatats In 

### Tmaa or other states where the ocmpany la ad&tad to operate, or bath In Texw and &bar states?* Subaaotion (e) of this question la not a.nswm&, sinoe your auppltiantal letter dlraote that it bo mItted.

seotian 6 of &dole 1302a reads as ~o~ows: “All oorporations, QometIo and roroign rritIng title or mortgagoopolioias or uud*rw&ng eontracts must at all times have and ke.ep on 6s. posit with the State heaaury airmah other daposltory aa maybe 

### named by,auoh oorporatlon and approved by the Boar%at ~Inaurenoa Comm,l8ai~nera, either oash or first mortgsga notes or ~auoh &ho aaourltiaa as ara now admieslbla 

### for lmes~~ bp lIte Insuranoe aolspanlea under the iswe af this 3tate to an smeuut eqtil ts ona-iomth @ the authorized oapltsl 0r auah ooxpmatlos; pa+ rided, however, that auoh doposit *all in na evoat rxow4 the sumef ~lOQ,~@CC&&*Hon. 0. P. Lookhart, page 6 .

suoh reotion aoes not cay that the doposit e&U. be made out of ae8eta separate from and in adaition to 

### thoao asaeta used in payment of oapital steak. Youwill notie* that Section 10 requires the **aoatnntiation** of aertala rssarv.8 separately and apart from the oapital oS the a-any. That the Legislature railed to meke suoh a requirement es to the deposit under Section 6 is signlfioant.

Neither does Seation 6 roqulre apeaifioallp that the deposit be msae out of ospital asseta. It merely meaaurea the amount of the deposit by the'smount of the authorimed aapital.

In answer to subdivision (a) of question No. 3,wu are advised that the deposit maybe mede out ai any asset8 available whioh otherwise meet the requirements of sald Seotion 6 of Artiole 1302s.

In eonneetion tith subdivision (b) & pueation 3 we aall pour attention to the rule that separate prolrlsi8ollcl ~ofa statute will not be aonstrued as eonfliqtlng if auah construction **aen be**  **rraaoansbly avoided.** 

Wealso oall to pour attention the fact that at tha tfma .of the amendmentto Seotion 2 (Aotr of 19331 43rd Leg., p, 750) whioh reit4rO to the Wmmlssioner 

### 0r Zn8u.ranoethqre was oo.offlosr in Texas by that title. The otatute referring to auah oi'ifoe was rep8aled by the Acts of 1927; 40th Leg., p. 329, which oreated the Boardof Insurance QtisdoMr8. All powera, duties, exu'prerogatlrea oi the QaP8intioner of Inauranae had prior to 1933 been transferred to the Board of Insurance Oamn.lsslcmere by Artialo 4862r, Revlard Civil Statutaa. It seems reasonable 

### therafdre that the reference In Scotion 2 to the Commlseioner of Insurance was intended to ba to the Board of Insurance So+uv&seioners. This isot, in eonneotlon vdth the reference to So&ion 6 of the dot, idioats8 thst all suoh deposits should be kept a8 provided 

### ln aaid Seation 6. Wesee no 

### oompelllngreason'for keeping the individual deposits in alfferent nmmer& WeBee nothing to require that the aeposlts be kept under olnt ~control of the State Treasurer and the Board. Subdivie on (b) of question t 3 Is answered in the negativs.

In subcivision (d) of QUek3tiOn 3 the phraSS "OT othsr obligstlons* is too indefinite to fOTm a basis upon whiah this ofriae can formulate an opinion and this opinion will attempt to answer suoh question by disregarding auah phrase ana oonslaering the quemtion with suuohphrase omitted.

Se&ion 6 of Artiale 1302a provides that the daposit shall be “either oeah, or first mortgage notea or arueh other securltles aa are nowadsd&Mble for Investment by life insuranoe companies under the laws of this state."

I Thereferenae to securities which **twe** admiesible \ for Investment by'llfe **insuranoe** eompaniea rofora in our

# 800I

Hon. 0. P. Lopkhart, pa60 7

. / opinicui to Artiole 4725 of the Berlaed Olvil Statutes whlah apealriea the seouritiea in whlah l uah eomp~ea aa9 fm,eat. Suoh atatuto begina as iolbtat

"A life laauranae aompanyorganlard &a the laws oi this atate may invest In or loan upon the iollowlng securities and none ethera.*



### It is truethatArtiole4726setsout oertaln uandltlona under which such oompanlaa mayhold Lanacoavey real estate 

### butauoh artlolee does not refer to auoh real estate aa an investment.

It is therefore 0ur opitthtt that Wemuat look ta Article I+725to determine the “other seouritieaw reierreb to 

### In Section6 at Artiols 1302a.

said drtiele 4725 autheriaea the iztvestmant in rirst mortgage loana aa followat

"St mayaleo mclkeloane u on'Tsa1 estate the title to wh iY on first llana oh,Pa valid and the value of which le &9$mare than the 

### amount laeneh thereon.*' l!bero are other reqitlruaente as to inauranee ,on buildings aonatftutiag a,part of the value el'suah 

### real eatats. %ham is no repulrement that the aeaurit9 for auah real estate loana be loaated.in Texas,

While Artlole 4724 math,orlzrs~i~vwHment in real aatete lcena it dose net aufhoriee the pur0haae of reel l* tat0 at4animestment. In this sonueotlw you are rdarmd to our opinion No. 

### O-4556addressed to you aad holding that real estate IS not a *aeaurityn *bthln th6 maetint of A&.iale 

### 4720, In aahaeotion pdth aubaivialon (a) af'questloll 3 YOUewe advised that the depmit required In Seatlon 

### 6 M Art3.cle 1302a maylawfully oonalat ai notes atieured by first llena on rael estate, and it ia lmatarial fm the purpoa) Q? auoh deposit whether suah reel eatate ia Moated ln Texea 

### OT in aoae other state in whloh tha aompanpia permitted to operate, It is further out opinion that auah deposit -9 not lawfully aauaist of the Teal estate itself Tegardlaarr of the loaatlon of suoh real eatate.

Your 

### quaRtionHo, 4 reads 

### a8 ioldowat
***IS** 

### th. 5% Tt8tTVt Oi f&&t &WONS &UWhUI preaoribsd in Station 10 cxtthe Aat, appl%oabie to **pTdltSl8** UpCmbualnaaa e&&dde of Toxaat AR&%f stopand ii you should hold that the aampatties maylswWll9 charge, 01pthat t&U Bear&Hon. 0. P. Lockhart, pa&o 8

maylawfully preeorlbe, pramlumrat06 ior tibia lnsuranoa risk written on 

### property outside or Texas different from prmiuza rates so preaorikd or **charged** in Temr, then 1s rruah5$ pramlumresame on premium from business outside of Toxa8 to be computed upon the premiums actually charged 

### andreceiveduponsuahforeign business or upon the different rates as presodbed by this Corn- ,.&vslon and chtirged upon/Was business, whathar .hlgher m lower than the 

### foreign rates?n Said Section 10 of Artiole 1302a read8 in part 1111 s0110ws: Wvery oompany doing’s title lhsuranee buainaas under the provisions of this act ehall ret 

### aside annually as a reserve 5%of its gcoae prrmlumsso oollected, bafore any dividends M paid, the .totals of such reserve shall 111)var beeiegrired $0 

### sxowd a totaL rasarva oi #lOO,-

. . . .lt

. Suoh provisioh roqtires tha l oaumulatlon of a fund for the protsotion cd pollopholdere ard should be oonstrued so as to beat aooampliah that purpose. The latter part oi Section 10 provides;

.

“Funds aooumulated undsr this provision shall never be wed ior the payment ot any obligation other than those oonneoted with title’ lnauranoe, and, la the event of the insolvency of .a ompany, the fuud hereby 

### provided ,&all bo uaed to protect title insuranoa polloyholderr even though there be no acorued title lhsuranoo claims and even though there be unpaid obligatloxp 0r other sorts.” You will note that the latter quotation does not, cay that ths funds shall be used to protect Texas title Inmranoe policyholders, but merely says *title Insuraaco . po3.10yholders.H sr the rund is r0r the proteotion or all pollayholders it oould conoelvably bs very inadequate for that purpose if the oompany did a large business outside of the State and the reserve was acoumulatcd from Texas bueinass only. The statute does not say that the reserve 8haU be set aside from pxemiume on Texas business only.

St la our opinion that the 5%reserve provided In said Seotioh 10 of hvtiole 1302e should be sot as168 frgn all premiums rotually oolleoted.

Your Question hT0,5 reads a8 

### r0u0net “Are oompanlea Bperating under Artlola 1302a properly taxable undar Artlole 7084 or0. P. Lookhart, / pg. 9

70647 It has been the oonotruotl~n si this Dspartment 00 far that 13020 osmpanies are all taable umler Astiole 7084 and that 

### Uhapta 18 oaauolty oampanieo **doing** e title lnouranos busl.orso are taxable underArt1010 7064. 10 this construction oorroot?* Seotion 7 of Article lgOZa, reads as tollowst Vhe general levm applioable to paymant OS filing fees and trenchlee taxes of oarporaticmo having a oapltal stosk are hereby mods ap lloa- ~e;;oo~m~satlono ocuulaguadar the prQviOiOUO

Domestio oorporatlons operatirrg under this iaw shall not be required to pay pmshun taxes. n Arjilole -7064 of the Revised Civil Statutes ppovideo in part as followor .

*Every Lnsuranoe oorpomtion, Llmyd’o, Qc sodproealo, and eny other srgaaisstien ar o(poI sarn tranoaotlng the business of fir., matins, smdne 

### inland, aooldent, orsdit, title, livsotosk, fidelity, guaranty, sursty, oaoualty, ce nny **other** kind or oharaotcts of lnaeranoe businaoo othar than the business of life lnOPan0m, 

### andother than rratemal bansfit 

## l sormletlms, within tbio **state** at the **tlmo** cd 

### riuag lta annual otatawnt, oimll report to the Bcasd oi I* ourance 

### Oommlodonoro the groem amount of premiums reoelvad upon propert loaatod in this Ststs cm on risks lasated in tL o Stoto dmlng ths prsSam .j+axeO.” mlole 

### 7064 or ths Revised Civil Statutso provides In pnrt aa iollswo a

%very tnsuranoe 0erporation, LloyB~o, 0s reoiprooala, and any other orgonisatlsn Br oeaaern tranoaotlng the busloass of fire, maurino, marina l&ml, aaoldant, oradlt, title, llrsotosk, rldelltg, guaranty, mrety, Oaauelty, QI any other kind or aharaoter ai i~uraneo buoineoo other than the businaso oi lit0 isauxaass, and other than fraternal bsaei%t aooooirtb5o, wlthln this State at the time of filing **its** a&- nual statement, shall repart to the Board or Inourenoe Goomls~ldnar8 the groao QaoupLti sf preriUi0 received upon prbperty looat*d,in this Stat@ or on rlekm loaatsd in this State during the pm oedlng year, and cash of auoh insuranse 

### oerrloro shall my an annual tqx upon auoh @ass praaf\gl reosipts aa 

### r0xmst

. , .*Hon. 0. P. Lookhart, page 10

you wll,l note that this statute levies e tax on lnauranue aarrlers generally with oertaln axoeptlono whlah tar $8 based on gross premiumrecai ta. s He **are of**  the opinion that the tax ievled by Artlole 064 Is the premiumtax referred to in Sectim '2oi Art1010 1302a and that domeetlo oorporations operating under Artiole 1302s are not requlred to pay the tax levied by Artiole 7064.

It is true thst Artiole 7064 baa been re-enaoted with certain anendmenta sirroe the passsge of Artlelo 1302e, but In our opinion subh aotion did not affect the spaoial 

### provision or Seotion '7of Article 13020 regarding pnymant of premiumtaxes. In this oomeotlon It Is slgnirIoant that at the tlme or the orlgl~l eneotmant or Article 13020 (erraoti+e date, February 29, 1929) Inoludlhg said Section 7, the premiumtax statute than In foroe, (Aota 19111 32nd Leg., ah. 108, H. B. 292) provided ror suoh a tax on lnaurenoe aompanlea doing a title lmuranoa bualness.

It lo rurther ux opinion and you aro so **advised** that In aooordanoe wlth $ otlon 7 ad Article 1302a, all omporatlona oomlng under the provldo~ of &t$ole 1302a are taxable under Artlqle 7084 whleh provldeo tar general franehlse tnxes on ocxporatlona.

Are Chapter lg oaaualty aompanlea doing a tltla Insurance bua$ness'taxabla undarArtlole 70640 The answer to aueh question depends upon whether or not such crampties are *operatlr& under* Article 13028 80 so to be exeegtad‘trom the premiumtaxes by tha~tsma of eald Seotlon 7.

It is true that suoh qaaualty eompanlea opernta under the supervIsIon of the Board of Insuranoe %mnnIaoloners as provided in Artlole U02a 80 far en the rates and policy f'orm **used** In their tltlo lnsurenoe bualneas Ia odnoerned. But under the provisiona ab Artiole 4989 the ISSDL anoe of title Insurema lo only one of the numerous'purposes ror which suoh 

### oaapenloo xay be lmmrporeted. Suoh oaoualty oompsnieo are subjaot to the numerous statutory provlololu of Chtpter 18 of the Ravlsed Civil Ststutes entitled General Casualty Gompanlesl~and therefore .opsrate under Artlole 1302e only to a lImIted exteat.

It lo our opinion and you are so advised that,%&+ tlon 7 of Article 13020 does not exempt general casualty oompanics organized under the prwla$ons of oa$d Chapter 18 from the taxes Imposed by Art1ol.e 7064 even though auoh aoxpanles are authorized to write title Insureme as wall as general -casualty lnsuranoa.

Your question Ho, 6 reeds no followa: wSeotlon 7 of Art&ala 13G2a refers to and adopts the *general laws appllaablo to payment

# I

Eon. 0. P. Le&hart, p* 11

**0t** rimg rw arsdrren0hie0 **tdma** 0r 00rp0m**time** having a aapitel **etook. ’**  Thla is tha prerioion on whioh wa base our oonolusion, mbodlad in question 

### 5 abwa, that the 

### rrtitt0hmtarn8 am to be applied ae provided b9 Artlole 

### 7084 rather than 

### 7064..Insafar as riling is08 are oomerned, howavar, t¶oesthle prwlaion 

### rerer to aa8 adopt Artlole 

### 394 or does it adopt Article 3920 as applioebla to these oompanlas?* Artlole 

### 394 or the Revised Civil Statutes aete at eortafn taoa whiah tha Seoratarg of State la authorlzed‘and raqafrad to oharga, amongwhioh ia the tollowlngl

Tlpon tiling each ehertar, amendmentor supplement thereto, of a private oorpmatioz oraatad for a09 purpoao lntaadad. for mutual pro- ’ rit 

### or benarit,,

I rung r0a orFirty (I50.00) Dollara, providod that ii the authorized oaB lkl atook 0r raid otlrparation ahall axoead Tan ho&= *ana ($l0,000*00) Dollara It shall be requika to pay an additlozal rib0of Tan ( rar~~woh additional TanThauaWd ~10,000.00) P 0.00) Dzllam Dollar8 of ita oapital steak or fraiWona1 pgt 

### tharaorarterthe rim.* Artlolo 3920 of the Revised 

### GlvllStatutes rata out oertaiz fare to ba ahergrrdand noairad by the Board of xneuraneo eoplaia8ion0rs whhh 

### reea indluda the 

### roiiOa&r Tar flllng aaoh 

### daolaratlon or oartlflsd oopy of the ohrrtsr oi an in8urenee oompany- 

### Sa5.oo.r Roth of the above quoted provialozs war0 in erre0t when &tlola 1302s baeama offeotire.

Ssotltm 

### 7 ofArtlola1302ais eat out In the aza

### WeP toyourquestionNo. 5. Beotlon 8 of suah 

### artiou road8 ae r0iiOw3n The ohsrtter of oarrporatlozs inoorporstad hereunder, and the smendmsnte thereto, ahall ba filed with the F3oardof Ineuranga %amisaionara, whlah asid Board shall oollaot from the a@%& ocaapanies riusg 

### roe8and rranahiae tams raquirod by law. * It ;s cle’ar that tha riling ibaa, by wkatovar etatuts datermlzsd, are to be oollaoted by th? Board ai Ineuramao Commlealon6ws~ Oz riret oousldaratiaz it w&d aeem log&ml that the roes to be aOllaatad b9 the Board should k datawioab by Artlale 3920 whloh amimarat.8 end 

### set8outtheteeato ba sollsotad by suoh Roard. It la alao trua that our Supram **Oourt** 1 in the 

### aaaaorDaniel‘(1. me1 &Garth Invaatlarnt Qampanp, 

### 93 S. W. (26) 372. srpraaaly saitr‘lion. 0. P. Lookhart, pa60 12



### , "TitleinsurenoaIs a kindortypeof lnmurenee.

*

. Rut we are faoed with Sbotion. 

### 7 whioh apeolrlea: wbenerar laws applioable to riling reea end i,fi;r;yse taxes or oorporetions having a oepital

Artlale 3914 above quoted aete out the riling reea r0r oorporatiana generally. Certainly Artlole 3920, ao 

### rer aa the riung raei or oorporationa are oomeeraad, la not a0 general as Artlole 

### 394,. beoauae Artlole 3920 rlxes the ril- $2mzees of 

### lnauranoa oompauiea and no other kind of oorpara-

. The Legislature has thus IQEmireSt8dits Intention thet the oompanies inoorporatsd under Artiole 13026 ahall pa9 the larger riling rees rixed by mials 39% The reason rer euoh intention ia apparent from the nature of oompanlee inoorporated uuder Artlole 1302a. Such oorperatioua mapba 

### oreete(l

ror a number of purposes In addition to the lnaurlng 0r titles. lhe9 ma9engage la au abatraot bualnea8, aaoumuleta 

### end lend azoney, 

### andaot as a truateo. The epeoitio 

### purpaaea ror which they atapbe inoarperalred are eet out in Seotlon 1 OfArtlole 13026. Sines euoh oorparationa ma9be luoorLa orated for auoh purposer;l in addltlon to the iseuanoe of title uranoe, it is reasonable thtat the9 ahould be required to pa9the larger iillng fees raqu5xed of oorporatione geuerally.

You era adtlsed thmt the amount or the rlling reea of oompanles incorporated 

### underArtlole 1302a should be determined ‘bythe apptioation 

### Ordrtiola 

### 3914 or the **RSViBed** Olril Statutss or Texas.

Pour queatlon No. 

### 7-read8 es rollowar "Sinea by the 1929 lot (Art. 13026) these cmpanloe have been rsoognlasd 88 lnsuranoe oompenles and removed rrom oontrol or the EIeoretery of State end put under the Jurlsdlctlon of this 

### Board,is our conatrnctiofi oorreot that this makea ma provisions 0r Artio1a 4705 applicable as to requirements 

### far alQ,.lb~lity or seaurities In whM~ the caDite1 Stock Or 13026 o0nwanies map be inveatad?" -
Ee also set out herein the portion mental request which deals with question NO. is a8 follows;

"In oouueotion with qumtjlon No. 

### 7, 8ha attorney ror the Cornpangearnestly eontends that because or. *the peculiar wording or Section8 6, 7, and 10 of Artiole 1302A, Artiole 4705 hoe n0 applioatlon~ to end doemuot 

### goorern the allgibilfty of' the types of eeouritlas in whkohthis tkm-Hon. 

### 0.P, Lo&hart, PW 13

paakmmm&vast or InItIall9 a Its 8apital

Ho, tharaOme, Uea tha positian that al.1 of

’tha aoourItioa lietad Ia tha aahadula aooompa Sng.the arrIdavIt of the Inoorpamtore

Y are elig bla under Article 13OU and l epeoially Sections 6, 7, 

### and10 theraoi. drtlolo 4706 

### governs the investment ai fuuda 41 atook Inaurenoo ocmpanies other than llra, health and aooldent cempenlaa, over and abwe the5.r oapltal stook rids; and, of aourfba, whether mtlole 4706 Ie a plAoabla, wether Artlole 4705 Is 6pplIaeble to It. ThIr 1 to this Gaiapany~wlll depend upon Department la going to require the Dompa4 to ay in WtIally a surplw 

### rundof at laaat 5,OOO.OG (whloh will probably result in Ita oapltal stock to #lO0,000) oorporatlng aud lfoaCaIng It; aAd, will hare diraotly Iwolled also the question or whether Artiola 4796 Is applIoebla to au& Sarplll8. quaation X?o. 7 by 1nquIrW whather 4 6 Is upWe, tharetorm, desire to au~glcmant plioabla aa to t&L CUpany In the imeebaent of Its surplus runda over and abwe ita authalead oapItal stook ftmd.* ABwe underetend your question No. 7 a8 oupplrmentGldlStatutea govern the 0UglbtUty of 

### preparty tha rd it ma9 bc,

ra-stated aa followag Does Article 4705, Reriso$ Initially reodvad in parent of the @apIta% a,toak fir oorpemtlon and doea Artiola 476, Revised .GivilStatutea, govern the eligiMlity af property in Milti its aurplua ftmd8 mapbe ixmestad?

.

That title Inf3mutaa la a type af Issuranao la no 

### longer an open question ainoa t&e oaaa or Daniel. t. !Pymll 0 Garth 

### ln~sstmentGmpany, supa.

A~%iol$ i+7Q&:ofthe Revised Givfl St@$utaa wMah reads 

### 118

r0mm3t ,:‘r

“Tba oapltal atouk uf any auoh iaauraana omapanp, axoept any writing Life, Health, and Aaoldent Ixiauranoe, Bhal.1 oonsistr "1. fnlaniul money cif the United Statoa; OT ,

OT inc~&atad town or &by thar&f, m In the

In the bom¶@oithis'mta cwangoaunty atookof alynatlanalbamk~ or "3. In riret martgag upm un5noumbarad raal eatata in this State, the title to WM.& ia 

### talld, and the mwkat ralue of whlah $a neb lose

. 'then 

### rorty (40) per cat mere than th* apotw

# 1, Hon. 0. P. Laakhart, paSo l4

loaned thbraon. Ii any part of the raluo of l uah real eatato 10 In bulldfnga, mmh buIldInga ahall bp luaurod agalnat'losa by Piro Sor not 10s~ than sixty 

### (60)per6-t atthevaluether~~~i#~~~~~ E; gotme pyablo 7 au6h rompany, 

### 0 prorsloneof tai8Artlalr, 

### withrem-' peat to the value af real eatato, aomparad to the mount laaned tharoon, 8hal.l not apply to loana seaured by real e&ate whlah are lnmrad by the Federal Rousing AdmIniatrator.* la iotmd in Chapter 2 of .TItlc 

### 78of tha RavIse4 

### bit11Statutos. Chapter 2 

### 1s entitle6 

### Rlnaorpcestlon af Inauranae Colr panIaa.W The words *any aueh insurance aompuap aoatainbd.* Artialo 

### 4705rear bak to aorpaaetlmm tormnd under Artlali ,4699, Revised Olvll Statutea , whiah 10 styled wParmatlon eb ~gtmlea* end to Artiale 4700 etylad *Articles ai Inaarpara-

.w Artiaiea 4699 and 4705 -0 round with the 

### uaeptioa of aertala later amenbmenta not port&n& Jmro la ttm Itch 

### vised Statutes a? l&V a8 Axtlale8 3028 

### and3Oj4 uabr tlu ahuptor elao styled thare aXnaorparatIon of Inauranae Campanls8." Xn duaawmlag Artielr 3CZii @ the Ravlsed Statutes oS 1695:and the title on IMuruPae 

### themln oentaiadmar13apream aourt in tha aaae of 

### State t. 

### Burgess, 109 S. W, glP,mXdt, We ara thus lead to 

### the aonaluslan that Artiale 3028 In Its ori it la, a genaral pror?.e9 n~wa8, as I.a 

### itslaagw@ on applleable to ali1 lnmranaa 

### oarrporatlons exoopt8-h a#nnybe 8x&a& ed by Axtlale 3996.w Xt Artlole 3028 (nm Astiola 46991 la a Sanaral cltatuto It reasonably rollows that Artialaa 4705 and.4706 in the sun title 

### are statutes of a abaU8r nature, Fro16 the abev* wo ara lead te aonafud% thet Artlala 4705 Is Intahclad aa a ga+ era1 statute gwernIn&z the aspIte stark requixwaaata af Insuranoe corporatloh8 havi.aS a aapltal atoak unlara auah oe poratloru'ara exampted from Ita reQuiremetes by Ita t$nntams or the terms of acane'ather Artiali,

The attorney for the iuaorporatar6 aaam'to oonae$a that Artiola 4705 aa8 Title 78, Chapter 2, are ep lIaablo lxmmanoa oarporationa generally but oonteads ~8 s to ollowst "The Statutes applIoable to the rormtion of aorPoratloni3 generally (Saatlon 57, Art. 1302, ol the Revised Statutes) parn&ttad the inoorparatlon of gaaraaty title oampau$anwlthaut aupervlalon ot. any~kfndar aharaataT insafar aa
. the Board of Insuraaoe ~QaP*donem we8 oonssrned up until passage of ArUole 1gOZa In 

### 1929. Caasaquantlr, tha geuaral incorporation statutea, luolpains the .statuta govarnlag the aapital steek requiramante o$ all r Irate mrparetlom, gweraec¶ 

### andaoatrolled 

### tlla SyiraatP aampauia8Hoa. a. P. Lookhut, p8&a 15



### u untilthetlaa' of thi pa88 * Artlelo 902.. Art1010 1302a ob*ngrb h,.~QQU@atiioa r 

### ofthegeneral 

### inoerpontioal 

### tatut*~eaW 'in .' thepartloulara

thoralaset06. Rb iladBO referenae

of any klad or ohsraoter in Art. 1302a to Art. 4705 ur any othar artlole of Title 78, Chapter 2 applloable to iosuruiee aorperatlona generally.* 

### Oneaitho 

### pmtlouleralqArtlole1302a. Rati& Civil Statutes, whleh ohangee the 8p Uoatloa ob tke g~~al lnoorporatlon atatutea 

### lathe prwia 

### fon la 

### Cho$loa23%hd a0 I further

oorporatlon

shellbe aharteroduader aubdlvlmlon 57 

### orArtiole 1302 whloh ia .thr general statute 

### sot purpoeea for whiah rlvat~oorpcrratlom may,braha provlelon aeeme to boata the iateatlon @f not=!?

. 6roatlon or tit10 lnaru'enoe ampaalea ander th* 8aarml ,qparrtlon statutea, Rhea the Legla~turo wlahodtomko tb, 

### general

laws ragerdiag illlug ier# 

## l ppllaeblr.te title iuauren80 eorpavatioar, it illa 80 b l Igprea8 provlmlolb St ianot uureaaouablo to premiumthat tho &glalaturo, It ft wished to 

### makethegonerallaowpomtloa atatufaardbr thur bi18ib atlr8aoo In 7 

### aration atetote*,

ap*lleaLle

toaahumrum aerpor%tIoa~ two&&d hate done 60 by oxp?oaa povi#len.

It la trua that aorp~etloaa iarm& uatlar ArtleSe

Guard. Under aartaia ooadltioru tha Roard r$ rowka auah oorperratleate oertlfrl8.ate of authority. The

### Aot~ovid0aoaa a 

### gww1rs3 lntwbtlon to raxsvo title inmx8am 

### oompd.eafrpr the ol8sa of private oorporatioaa -ally and plme thaa in the olaaa br statue o? lnsu~anor oorporatioa8.

The mere faati.thit Artlele 1302a appoere in Per-- non*8 Annotated Civil Stetutee~uudor the tItl;;~p~va~ oorporatlons gene-rallg has ue aignltlaenoe. passed elnao the revision of 192s ead the A6t do06 aot &or, lgnate in what chapter of The Revised OltIl 

### Statutes it 8hWld be plapea. The fipplioatlon of Artiulr 4705 and'4706 to tlblo -1nauranoe cmpeaiaa, 

### will not nPil%fy th4~prwlalona of SWtlon 2 

### @SArticle 

### 13028 whiah l hwa 

### lnvratmwdiof a **sertala**

10 nmiatained in that 

### eaaditlon, Tha toram of both Artlr1ea muat give way whetaia oeailiot rlth the 

### tema ab Artiolo 1302a whluh Is the 

### moreaooent 8nb mare partl6uZlar atatulm,Han. 0.P. Imkhart, pa@ 16

In 

### answer to question Na. 7 it la the oplnlon ei I this departmat and you a??8so advleed that,Artlola 4703,‘. Revised Qlvil Statutes, la epplioable to Aetiraiaa the initial aapltel atoak requiramanta of a title inaurea6e oarporetion to be oraetab under Artiale 1302a RevlaeA Clvll Btatutas, and that &Mole 4706, Revised 0~~11 Statutes, gwiraa tha Investment of its funds over and above ita paid up aapltal atook, Snd it la further our opinion that aueh artlolea ara eppliaable only Insofar as they do not oonfllot with einyprovisions of Axtiols 13028, Revised 01~1~ Statutes.

In aooorAenaa with the Aireatluna in your supplemental request, question No. 8 la omdtte4 from this oplaloa.

Your question 19,. 9 aontalnwl in your aupplamantal lotter consists or twelve aubdlvlslona and euoh queatloa together with tha exptination in oonnaatIon 

### tjhlsrewith, sea88 es 

### follows: "In atud~ng the aahaAule 

### or easeta aaoclqpan@g the affidavit of the l~oorporetara, ,whloh assets will be tendered in payme* ti aapltal atook end surplus (before eotual 

### fib lngt the obartor will probably be rewrlttra ao as o divide theae smote u $lOO,000,caplt~l at&k and B into a n&tlmumof 5,000 aurplua) we 

### observe ttist the assets are af?irmatlvaly diaolaaed ta ambraoe 

### (6) ia? tltlee to real (b) reel eetak purahaa& ooatraota,,,Jrsd or other mouetarg obll@ttlom &eau@# lion upon real aatate, acaneof 

### all~%bxoe af whloh are located In the State at Rew&!!xiao' end some in the Utate of Texas. Of 

### oourae,ba

### foreeitheraharterlng or Iioenalngthla Cola, Q~IV this Departmsnt will 8laaharge its 

### roepona~bllltg of detemalnlngwhether or not tkm eaaete aa llated in the eahadule to the e~rrldevlt @re aotuallp valid fee titles, raal estate 

### purchase

contraate and obligations secured by rmit liens upon Pea1 estate, and tha laaatlon thereof (whather in Toxas or lOen

### Maxlao)and the value thereof. Eiut, r0r the purpose of determining the legal ellglblllty of tha varloua olaeaee of aasata so tanderaA In payment of the authorized aapltal stoak and tha aurplua funds whiah may**be** set up 1nitIelly in 

### lnoorporati4j this C-pa y , we ask you to anawar apaoirioal p tha r0im ng queatlona 

### inadditfon to those propolinded heretofore, regard&ass of whether you holedArtlalas 4705 and 4706 appllaable, ar whether you hold Artlole 13OZAa? aaaia other extialo or artlolea of the statutes epplloabla, with refaranae to the lnveetimant of the aapltal anA surplus rum30 of this Wspa~rBoa. 0. P. Lookbart, pa@ 17

“A. Are i6r fltlse to real estate sltwtr 

### od inTen8

l llglblr to be raooirad in paJnwn0 ou the'eapltal ‘atook funds of this Company? "B. Oaniee.titlee to JnLl estata outal& ai Texas ba raerived in payment or oapital hook OS t&e 

### Campany?

q. Otmfee titles to rul eetato otltride OSTome bo 

### rooepted in payxmt oi aurplue af this aon@myt **“%** Oanraal estate purahaee oontrectr upon real property in Taxas k **aoaepted**in pya#at of oapltalgtook of this Ocmpanyt V. Qanreal **estate** purohase oaatraots Upon real property situated oataide of~Tem8 ~ba 

### l ooapted In paymat **or** oapital stock at this' -mw Oanrati l stata pur&aae ooatraets up

### onp(to&tfoutside 

### orTon6 

### beaacepted’ln payment 0r~8orplui~of air Gcmpaaj3



### othermonetary 

### obllgatloa8 apanraalestata blkni cd aapltal ateak 

### or thlm

by first lieno upon real a8tato 6ituated oa,lt8ide of Texas ba rowlvad in pafment tg aapital 

### stook 0r this oampauyt

Canaota a other **obli** 

### by iii% lima **upaa** raal a6tate '5" tlona **mcrurod** s tuated 3.nTaxno ba raoaived in payment of swplw of thir Qcqaay?

Caa notes artdother obli~ttone aeeured bg ii% lion8 ttptmreal ssteto crituated cstttalda at Tmas ba **no'*lY~d** la payment or the SurpluB or thb ghmgaay?" We da mt att&pt to azwuer 

### aubdlvl&mu E,T,,O and ~Ha slnw the term "rmal aetato ptrrohasa 

### wntraots" dam sotNo& 0. P* La&hart, Pa#$a18



### AUO we dll Ulaxegaxd the pJ&raae 

### *or 

### othw monetary obl&atlona” oontriaed lr~aubdivMbn8 

### I, J K, 

### and L, koauao 8u.h phxaa. la too %n~.tiaLt. to b. the bsaja of an 

### oplnioa,

Subdivlelous 4 and B of qareatlon No. 9 are anawarod In th. nsgatlve. See Astio1. 4705, Rlav1s.d Civil statuttea, heretoftie quoted.



### Subalvlelow c: snd D ai qwetion FID.9 

### am notin our aginlon answered by the terms o? Artiole 4706; 

### aoh reads inparta8followa:

m oompany, aoept any urltiag life, health, ana aooident, lnsuraam; organlaed und.r.tho vlaiow of thl~ ehaptsr shsll invest 

### itsruar war snd above lte paid up eapltal stook in inn otbx 

### manner than as follows;

. . .* 

### Ztlo txui 

### t&t ttixeot imsstmaut Inrealelrtatr is not parI dittad by the tsnna of oath artlole, But aa we aoaatrua yaaz lattax 

### allP

question

theiwtl.rstate ia 

### thlaease

fa 

### teIn ooavay8d 

### totheocaipaay oniaeqxpox~tioa

a8aglitoreealsibutlon, ~fhe acioeptsaa. of aaah coatributlon la aot an inv.atm.at'dthin the asauingat Artlol. 4706 whfah 

### laapm+ cf*e statute. Wobnter dttrirats the word wlmwt* as iot

Tharafa. otw haZd5.aga$idar qnastfon.Sa..'I d..s nat mesa that ktlole 4706 is 

### declalva ,ai the altuatloa 

### maaentrd ln cubdl~lalaar, Oven&r)of quastiwL9. Emover, Artidle 4715 under the t&tie on inauranc. prwid.,a. that the 1~~8 fwez%lq eorporatione in gmnewl shall a sorporotlona lnaorparated la th s~atate laaufar as the aam !ply to and g0vSz-nLSUXSM. 8~. aot lmonslstent with auah t&St& In Cbir ooaaeotien wa direot year attention to Article U&I uUoh raada aa tollawat

***AU** ~lvato’eorpoxatlona 

### author-iaed bayT the mm or mxae,.to do bwlnesa In this stat., whoso satin pqou. la not the a.qtisiUon or ~ownsrahlp of lands, whloh hava or msy aaqu%ra 

### bylowe,puwhaaeorNhsr*8sr iWar8land thaa .is rrsoessary to srreblr them 

### to olrrg on the@ date said land Bay b8 aaqUirOd, bwlnes~ shall, wl)$dn 

### fltteea earsgig Ll isell and eonroy in $00 Illimptbalt landa,aa io* 

### quired *hiah are.not neaesrary

rw 

### thetxanaa4- tl* of their bual1#a6,* Aadtc Artisle l.j64?&iohrradaaa r0lloat

### saw aubBjact to iarfalt\tre aad l aehsat 

### poe.wd- -65. The

### AttornbrGa&eml, a 

### say distrlot or oounty 

### attorna~,

whm either

OStkam ha8reaa0a 

### tob6U.m that 

### @iIoorporatlon la holding lands invioJbttf0n

0r t alaw,

dullfa5tltnte

l ult In the mum ar the State or Toxaa, in 

### TrWIS County, 

### or in any oounty 

### in Texas wheti 

### aueh eorporatlon 

### MS hare an agent, 

### ur ln sn~‘oouat~ whwo anf part cd tha land ma agalaat owh aorporatlon, as f ba sltuatad, a provided tar the esaheat or astatos 

## Ordewased 

## persons dyZn& wIthout

devise 

### thereof

andhaving no hairs.* In the case of 0arnpb.U v. Hoodi 

### 35S. W. (26) 

### 93, (Otau.App.1 Dec.) the oourt 

### mldr

“For manyyeare it hss born tha astebllshad 

### poziog orourstats

toprohlblt oorporatlona, ’ with eertala axaaptlons, from aaqulrlng l&l.” l?heaourt 

### .rlrrther saldr qt 1s true, 

### asar$wd **b** i the 

### plaLntlii8 lnerror, thst ii tha oorpom Ionhaa eon6umm9 od the **deal** by aoqulring the lands no one omald hsve questioned its title sxaapt the stata.* Woaan

## rind no lsa raquirlng 

### thewt&l or a 00~1 poxate sharter beoause it 

### lallk.ly thatawh sorpontian ma aoqulre by oontribution lands rhieh it la 

### notUlmm4 

### to ha d, 

### f tharerore the question 

### Imlv.d.lnaubdlvl8lma 0and R as to the corporation'6 right ps la& of 

### r&&t to reaefn and hold euah landa 1s newlar ely f: l eabnle. St 

### shouldk dstarmlmd whenit aotually ar ses by proper preoaadiaga tmdex tha tarma or Brtlale 

### 1364abw. **quoted.**

Subdlvislon I af uestlon Xo. 

### 9 1.anawexed 

### lath. arrimotlve provided. suoh rfrst lleo note6 onToxw raalta mset the 

### requirements or Artleli 

### 4705,

Revlsad Olvll Ststutaa, ee to the 

### valueof the seaurlty, fire Iuaummee, et&

SubdIvIsIon J of questi,on No. 

### 9 isawwered in 

### the negative beoauae Artiale 

### 4705, Rsvlrml

Civil Etatutee, 

### npeolr1.arirst 

### mortgsgenoteson rosl estate **In** this Ststa.

In anawar to aubdlvlslona E cud L of qusatioa Iio. 

### 9 you are sdvlsed 

### thatforthe s-a ran110118 58t Outi 

### abevo inth. dlsouasion or subdivleloua C and Dwe do not pass upon the aorpoxatlon*s rl&t.to receive br o@ntrIbutlmka 

### endthereafter 

### hold suah first lien notes an a part of it8 aurplu8. However, your attantlon 1s $lreoted to Se&ten (b) of ArtIole 

### 4706authorizing invf3stm6as of aurplua rum3 a6

## r0uOpILlt

"1x3bonds or rirat 3.l~~ ~n~unlmmbered real estate In this State ORIn any other BtSt8,

### oountry, orprovlnoe

la.whio&

suoh0-w ry k dulyllaon6ed

tooondliot’4n

iMur6noebu6ln860, atiprorUinginscloh 1tWanaoruoh

real eat&o ahall be warth at 

### least ferty(@) p&roont

mm-0 than tho empunt lasnad thqmon: '!ka relua'of suoh real estate shall be de&ermine6 

### by a raluatlon nade under oath by two (2) freeholdera of the oouaty whore the roal ~eateto is looqted; 

### end it the bui.ldlnga are oonaidor6d a 

### part of 

### the value of the real aetato; thoy must be **lmwrod** ' against loss **by** 

### fire for not lesa thau qixtr 

### (60) ‘pek oent of the value theroof, *it& loaa-pa3abl.o ~olauee to suah mupang.*

. . You are therefqe advised **that** a tit&o Mmiranoo 00~ pany my lnveet its surploa funds in first lien note8 on an-' tibarad raal estate either &nthis Stst,e @r w othar atat* in which it is duly 

### l%oelreed tos&z&M (UQ

laaaranoo

bus&near protidod the other ~equlroinents oil.&1010 

### 4706ireuMo$i&.

.Tmitirq th%a 

### -oplaloa dll **aid** 

### intha detom&& 

### t&m of tho probLsm6 

### b6fare you, wo are

..

DQt6brJrb