**I** 

### 688

**OFFICE OF**  **THE ATTORNEY**  **GENERAL OF**  **TEXAS AUSTIN**  **GROVER**

**SELLERS AI-W~)NIY** 

**GINEIIAL** Honorable **Alrrad Y.**  Olydr Dlstrlot **Attorney** Fort Worth, Texas Dear Sir; Opinion No. O-n52 Rer Right of rorrlgn corporation, the mjOrlty of the Capital

1%are In racslp requesting **our opinion**  **on**

States and Texas corporaor a **number of** 

srpratatlon o? Title 5 **utss** of Texas as applied

**s** wsundsrstand It, Article

Title 5does not apply to parcels of land ownedby aliens In any Incorporated city. We will appreciate very muchIf **you** will review the mattar In tis light of these facts and

### 689

itinorsble **dlrred 4**  Clyde, Page 2

confilm that if the prospectltr purchaser aoqulrss oontrol of the Texas oorporatlon, as aroresald, then in your opinion, the real estate in the incorporated city 

### Is not subjeot to ?oreolorure 

### or reoheat,* Thle department in Oplulon No. 0.3911, oopy of wbloh la herewith enclosed, has Interpreted Artlolr 

### 167, Vernon’s Annotated Civil Statater that lots or parcels **0r** land owned by allehs in any Incorporated townor olty was an sxorptlon to the prohibition oontained in Artlola 166, V.A.C.S., wherein alieua are prohibited ?ran owing **land** In Texas. Thelaw relative to the mattrr In question Is contained in Title 

### 5, V.A.C.S. (S.B. No. 142, Ch. 134, 37th Leg. R.S. p. 261). J.neatnuchas the oourtr have not passed uponthe question, It Is neoraaary to arrive at the leglslatlve Intent by construing the language used In the whole act. For that resson weare quotlhg sameln full. :

“Seotlon 1. That Title 3o? the Revised

**civil** Statutes or the Stete of Tsxaa, 1911,and all amendmentsthereto be amendedso as to hereaiter read as follows: *Artiole 15. Noalien or person whola not a oltlzen of the IInlted States shall (Lo**quim** title to or ownany lands in the State or Texas, **ot acquire**  any leasehold or other interest in such lands, except as **herslnarter** provided; but he shall have and rajoy in the Stats of Texas such rights as to personal property as are or shall be ecoorded to oltlzans o? the United States by the laws o? the natlon to which suoh alien shall belong, or by the treaties of such notlon with the Enlted States, except as the aarmmay **be** affected bythe provlslonu of this title and the Gez.eral Lawsof the State.

“Article 

### 16. ‘This title shall not apply to any land uowowned In this state byelIenS,

### 650

Ilonorable .\lfrad Y. Clyde, Faa,r3

not acquired ln violation of any law of this 3tot4, a0 long as It la held **by** the present owners; 

### nor to lot8 or parcels o? land **owned**byall4na In **any** lnoorporatrd tonn or oitp **or** this sixt0, nor to the r0ii0tin8 class44 of allegs, whoare, or whoohall become, bona fide inhabitants of this State, SOlong as they ahall oontlnur to **be** suoh bona fide hhabitants of the State of Tsxasr "(1) Aliens whowere bona ?idr inhabltanta of this State 0n tha date onwhloh this Aot beccmee a Law. "~(2). Al.leAs rll&ible t0'0itlzeAehlp in the Urltse States whoshsll become bona ?ldo hhabitants of this State, andwhoshall, IA coniormlty with tha natursllzatlon laws of the Unltad States, hays deolarrd their intsntlon to become oltierns of the United Statss. "(3) Aliens whoare natural born eltlzsna of nations mhloh have a c0omman land boundary with the United Statsa, "(4) Aliens whoare citlzrne or subjects of a nation which nowperzlts Amarlcan oitlzens t0 0x7~land In r44 In suoh oountryg and any resident aJ.leAwhoshall aoquire land uAder the provlelons or thia article aball haos '18 years after he shall cease to be a bona r ?I o Inhabitant of this Stats in which to alienate said laAd. '?hrtlola 17. Thaprovisiona of t&is title shall not prerant alien8 from aoqulrlng lends, or any lnterevt ti~e;'ain, in the ordinary course or justloe In the colleotlon of debts; Aor from acquiring lions upon real astate, or any interest therein; oar from lending moneyand sscuri~g the sam4upon real estate, or any Interest therein; nor from anrorairi any such lien; 

### nor fro0 eop,uirlrg and holding title to suoh real estate, or any interest thereln, uponwhich:a lien my..

Iionor:~ble .*lirad .a. Clyde, -%ga 4

have heretofore or mayherrafter ba fired, or uponwhloh 

### a loen of oronaymy have **bean** 

### heretofore or haraaitar maybamadaand **mowed.**

“Art1010 18. All allana, prohibited 

### from owning land in this State under the proviaions Ofthis title, whoshall haraattar ooqulra real estate In 

### Taxaa by **davlar,** descant, 

### or by purohaaa ar permitted bythlr tltla, amg hold mea 

## rorrive yaarr; and **it** auoh

### alian Is a minor, hamy hold sane 

### ror rive ~asre after attalnlng hi8 majority, or It of unsound mind, ror rive years after the appointment or a legal guardian.

“Art1010 

### 19. Anyalien whoshall hereafter hold lands In Texas, in oontravaatlon or the provisions or this title, my, nevertheless, convey the rea simple tltla thereof at any time barora the **InatltutlOn** 

### of aaohaat proceedings as haralnafter provided; provided, however, that ii any euoh oonveyanoa ahall 

### be mda by such alien either to analien or to a citizen or the United Stetes, In trust, and ror the purpoea and with the intention or evading the provisions of this title, auoh oonvayanoa shall be null andvoid; 

### andany suoh land 80 oonvayad shall **be** rorraltad and aaohaatad to the Stota absolutely. *Artiola 20. It shall be the duty of the Attorney General, or the dletrlot or oounty attorney, whenhe shall 

### be Informed, or have reason to believe that lands In the State are being held oontrarp to the provlslona 

### of this title,
to institute **euit** In behalf 

## orthe State 

## or Texas in the dlstriot **oourt of**  the county where suo:i lands sra altuated, praying ror tha aeohaat or the sameon bahalt or the 3tate, as In oass or estates of persons dying without devise thareof and having nohairs.

“lirtlole 21(a). Xoalien shall 

### aver be appointed or For;llittad to quality 

### as guardian of the estate of any nlnor or parson of unsound .-lind, or as exaoutor or admfnlstrator 

### of the.lor.orabla ilrrad L.4.Clyde, Fags 5

estate of shy 

### daoadant In this state, uhleas ha la pernitted to 

### ownland 

### under the prorlslono 

### orthis title.

nArtlola 21(o). Iand owned

### in trust, either byanalien or bya oitlaan of the United States, for tha beneficial **uaa** or ehy alien 

### or allene, **or** any corporation prohibited from owning land In thla State under the provl~1on.a or thie title, ahall **be** aubjaot to ~orfaitura aa though the legal title tharato WUII in such alien or oorpora **tlon.** alsrtiole 21(d), All aliens nowownlog landa In the State of Texas, ahall on **or** ba**fom the**  **1st day**  or **January** 1923 ii18 awritten report under oath, with the Clark of the County Court 

### Orthe County in whloh 

### s~ohland 

### is located, giving the name, age, oooupatlon, personal desoription, place of birth, laaet foreign rasidanoe and ailaglanoe, the **data** and place or arrival or said alien In the United Statea, and his or har present raaldanua andPost Mrlor addraas, **and the**  length or time of residence in the State or Texan, the fOr@ign 

### prinO@,pOtentate, state:or aovaraignty, of whioh the alien maybe at the time be a oltlzan or eubjaot, and the number or aoras or land owned by suoh allan in enoh oounty, the nana and number **of the**  **survey,** the abstraot and oertirioata number, the namaOr the parson or parsons, froa whenaoqulrod, the data whenaoquirad, and ehall either deeorlba said land bymatea and bounds, or radar to rooordad dead in whioh sameis 130 daeorlbed, which report shall be knownaa ‘i?lJPCRT OFALIZN G;.XXISHIIF

.’ Irovidad further, that all aliensEonorable Alfred -I. Clyde, yega 6

heraarter purchasing, or **ln** any amnnar aoqulring lands looatod in 

### Taxao, ahall 

### within six sontha after such purohasa, or acquisition, 

### file nlth the County Clark 

### or the County in whioh such land Is looatad, a ‘Report oi Allen (Rnarshlp,* in tan8 as abovu required.

“.%nyalien whomaynowownland l.nTaxaa, 

### or whomayharaaitar aoqulra any 

### landsti Toxaa, by

### purohasa or othsrwiaa, who does not, wlthln the tlma praeorlbad 

### in thlr Artlolr, file tha raporta hanin provided for, shall 

### be subjeot to haw suoh land rorraftad and eacheated to tha State or Taxaa. The reports heraln aoqulrad shall whenthe allan Is a minor **or** fosana &arson, be A3za guardian of euoh alien. d’by the parent or It shall be the duty or tha Clerk of the County Court ot aeoh county to file andraoord the reports above provided ror In a eaparate Yoluna, to be entitled, *RZCCRD OFALIE OWriRD

LANDS, I for 8aid oounty, whloh reoord ehall be alphabetloa~ly indexed. The recording iaae ror raoordlng auohreport6 ehall be paid by the alien owner. UsaO.2. All law6 

### and parta or lawa~ln confllot herewith are hereby exprssely rapaalad.

“Sao. 3. The rsot that aliens whodo not propose becomlng oltizanr of the Unltad States are nowattempting to acquira title to large bodies or fertile land in this State ‘orsates an

### anergmoy andan tiparatlva pub110naoeeslty that this bill shall and it hereby dose take arreat.fTom and after its pesaaga, and it is 60 anaoted. * (3mphasi.s added) Acareful study or the whole eOt makes it clear that the X,agialotura by 1ncorForating Art. 21(b), whloh wahave undereoorad, did 80tar the 8010 purpoae of preventing an alien fron doing lndireotly, (that is by incorporating), from doiu what he is prohibited from doing directly. As bald in our opinion Xc. C-3911, analien my aoqulre and hold title to real estate looated within the corporate,c.nor,blo \lfrad ‘1. Clyde, !WO 7

liialts or towns. suprn 1. (&oh exemption ir oontalrmd In AH. 16,



### Then, labor in midl 

### ot l ppaara Art. 2lU(b)whloh 7-nrequok:

**“ Irtiola**  **21(b).** saloritiy 38 rorporotlon 

### In whloh the

or ~aoa~Ital abook is le.zallv or



### as thowh ownedb+aion-rmsldant, l 

### .llan.* ii.cmphgPaaddad). Lt la oleor to ua that the phrase *owned byallaru -ro!iibItsd by law from 

### cwnla~ land In 2ha stats 

### of Taxam”, ~;33;iathat 

### ii the 

### allass whoownor omtrol the 

### ntook of zuoh oot:.msClon are prohlbltad ZrolpOHnloF,thti RU, eatak .:a quastlon, 

### then the corporation they 

### aontrol la 

### like- -::isa rrohlbltad. The above oonatmotion neoraa~~rlly iollowa :nthat alien8 are no,%grohlblted ,frouiownSngreal $roparty in 1morpor.s tad toma. **&id** 

### Artlola pmvl~!rs that land 

### :-mad by 3 mrporstlon In which the xajorlty 

## or the oapltal 4ocr: is zuunadby alIens Wo&11 be subieot 

### tq~iaaohaat under 1. ‘

. ;.,,eTrovlalona 03tkle title, 3s thou& ov;a@ 

### ~bra mmn 12 suoh a oorporatlon owns aand in an inowncuk IO k. l

eoheatad? 4fa

### think not, rot the 

### 400 aaya it ehall be 

### aschestud “a8

## thQwhowned by a non-



### me+. * ;-;lyJ **iI** 

### ownedbyIInon-rsaldant alien it eane **asehan ad,**  a8 

### the low r~naalp 

### glvsa **to** a non-raaldant allan thr right io own auoh laniir In krborporatad towna.

It is also ai@!Ifloant to note 

### that In the o&tIcatlon or 

### cuf atctataa In 1925, the 

### abow Artlale 21(d) was changed 

### so 81 to 

### ‘m UC-% **ziot** 

### 0~4 rllana, but also slim 

### ooz- ;:oratlons 

### to ako wr ttaa ragorta undar 

### oath to thn County P Clark, and

### groriding that dlleri oorporatfoaa aa wall Paaliens

. ;vhoOIYL~

land In Taxnoor wkusy haradttar eoqui.28 any land in hxaa, wP&do not r1l.a such raportr shall be eubJeot to here
**3uoii** load forfeited n7.daachautad to the 3tat-a

## 0rTexas. SUOh .xtiaie 21(d) in 110~oodiiiad as .ztlola 176, ?..;.C.S.

It is, tkerafora, tLe

### o!;inlon of this drpartaent tl;irt 

### a oorrcrufion 

### in ~&lot:t:;a nujorlty of tha capital ,togi 1~le;.+lly sr equitably ownedby uliar;e my acquire 

### ;lcd C:Y:X lots or :~aroalt) OS 

### land in any inc.orForuted oity Or :3wa in t:tiQ .Xzta. It ;leosser?ly lo?-lows that euch lands ~xnnot be ewzheated.