# 4

OFFICE OF THE ATI’ORNEY **GENERAL** OF TEXAS AUSTIN

Honorable 04 P. Lookhart, 0hrinm.a Board of Inaurrmoo Comirr1on.n Austin, Taxa
Deer sirr Opinion No* 04gsl ~0t adiri0m 4*00riba should s0t be aonuldored a8 liebillty or rratmni bsasrit rochtg m00t9 itr 

### ro1v.n~~

lullmae.nb

oat11 a iml judgupot ir roedraW M -*
Your requa#t iOr 

### OpialOnha8 bean 

### rsOeitrd Andyoeretul1y 00nsie4r0d by thlr ll.partzI.nt.fie quote from your r.- quest am rouana

l Toxea Pratelnel

~o oletp,

0r ~llae,

Texae, (forwM.y Taea Logal ki.ne funoml soolsty) la 

### a fkatmael benefit 

### roolrtf lnoorgoratd and 

### operating,

purportedly, u&r 

### the provislon~ of Chapter 8; Title 78, oi our &tired Civil stetute8. It bar operated under a Cartirlcatr or Authority room thin De19" rtment which.ha8 K&W 

## l s;lred, however, and 

### it 8 ocntlnul& to operate under the h6ldorrr 

### prOViSiOn oi the rtatutea uatll a %nml Ca-tlfloato 10 rlthor lasued or 

## l $JeofflOell~

denied. “bong othrr romon~, the llrnmml Certlfloete 18 being wUhhel6 beoauee itr rsoords alsolose that at mm tbe 

### in the past them was e-~ortedly lssllsa

by the SOoistg:to one BI J. O’keOffa a Cmtlfioate whereby the Society jmr:;ortedlyobll38td itaf t0 PRY to cwc~w~ th4 8um 0r $4,167 on a future bate, thr Certitioate being, 88 no are lnforhd, rll~d into the rora of oertiflcclte of 

### nhiohwo 

### are furniahlng 7ou a aopy barewith, *If this obligotloa is to be Oharged ae a iiabtlity 0r the soolbty, In emmining ati mait-Eononbto 0, ?. Uokhart, Cbeimn, hgr B

lng it8 

### l

mlrr 

### for thr T 08a **or** d0t0rriib 

### lagwhothcr 

### or not 

### it la l

### o wont tbrn 

### our d~trmliaatlw 

### wouldht. to 

### be &et it ir la**wlveat** but l

wh 

### 4~tomlnatlonmuld not bo nqulr a 

### it theOortl?leate lr wt prog8rly a llabllity 

### Or the SOOiat~ln the rirou~- 8telm~8 bnlnoutllnedr 

### Cmr attorney 

### roptumntiae 

### t& .Sooloty, la ordar to obvlatr 8tmh obj*otlon, baa 8ubtitt0d t0 **w** 

### 6rrid6rit0r f. Y. 110pki~8,thr 

### rnv Reridont of tha 

### holot 

### AI’ t0 th0 

### l

rr00t that 

### th8 Swlety 'lr not 1 

### l btad to B. J. 

### ovswta, toriaar

Pr~fiidwit

0r ruoh moletp

. . . for beak sale?l*r 

### or on any other (IO00uut.’ 

### 80 has aubldttd 

### to tu also 

### en la

### d-it7

l ~anent 

### jollltly

in 

### rtatuto

ahnod and arknowbdgod an4 hi8 

### rir0 hho, T r0m 

### by I. Y. Ko;klna 0l tetu to 

### us, era. eapl.7fiol~ent

and able 

### thanolally to baok up 

### the l

**eroaunt )**  **to** ladmalty end **MT.** the gookt I harmbar ??om losr 

### by rwwa of fiuoh O@rtlt oat@. *The ittomey eleo mteter to ue rerbelly the ?OimVlIIg feOt8 whioh, ior the -080 of thir opinion, you me7 l

### a8uw **to** bo true. vhat 

### thrwtiri0at0 18 

### In th8 r0m hereto etteohad. =Tht l 

### wh Oertlfloeta ua8 108u.d by Mr. s. 1. O*furte to himmelt, purporting to aot a8 Pruldent otul r&i10 he we8 

### l otrall7 Pre8ldeat of the Soolety, but contrary 

### tn the raoltel on it8 

### ?a00 4th. out aAy rewlutloe 0r the Bar4 0r f&wtor8 

### or other proper euthorlcetion to him so to do having been granted in eocordems with the provle1on.e o? the oherter end by-leu8 

### 0r the aoolet7. "'fhat,WAtI~~ to 

### the NOital 

### in the Certlfloate, 

### omdto aavbr l dvenoeU eny 

### rerh or lto 

### l

qulmltmt to the Soolaty aad 

### that the &ale&y we8 not indebtod to mOOri ln any 8um 

### or on any l ooowt Wh6A suoh Certlflcate we8 irmued.*

Eononbls O* 

### P. Laekhert, 

### Cbklnun, kgo S

-. *¶%a attoraq OTmfi up00 w hi8 rl8w8 that th. CUtitiUt6 &md.d sot 

### bo Set 0; es 

### a lleblllt~

ot the 8Wkt7 **for porpO8.8**  

### of **det.l'dIii~ it8**  SOlTrAOt',trl AOU, to? the ?O~OW%~~S68OIMo 

### vhat itwea lsstwdWlUlout 

### .0n8140rrtionr That 

### it ram issue4 vlthout 

### l uthorlty of th0 

### govarnln&

body bring glron end 

### etldonoad

in eroor4enor

with the oharter 

### end bplnrr.

CbSOFTO8 00 ptiisiO# Or ia-• iSSU@d ;&tdo;hFOU& it, 6Bd the 

### Pa-At Of it8 it oennot%Ieretloaa~; end that, themfore,

any orrot baotmo'en obllgetloa or 

### fire4lieblllty o? thedwldty or bsoomo 

### duo end payeblo unlos8 end 

### until tho **Swl6t7 baOa6efi**  amply **8Ol.tUit end**  

### remains rolront dth all opsrstlng l xpermes, roln6umnoo prmluma, an4 legal rs8srv*8 MO~8UX'y iOr it t0 mUt it8 PliOy obligations, 

### l

to., emfully

~mvl4o4 ror 

### end until, over 

### and l

boro all of 8ueh itom, 

### it s&11 ham l

ooumulatsd a 

### 8u?tlol~at rurplw out of uhloh tc my the ?a00 value or the4 csrtlf~oetrr _' *A8 yet A0 Suit ha8 been bfowht, Or d6WDd

for peymsnt made upon the Csrtiflsets~ but Ur, O*Kss??r rtlil 

### hold8 it **and** wemumbly treats it 

### as a biding .obllgatloi eaU intmdr to beman peymsnt ead ?robsbly sus later OR... .

Eonoreblo 0. 

### Pe Lookhex%, ChaSrmn, k&s 4



### l **Auumlng** th, 

### above **rertr to**  **k** rrteb-

**. -**  site u8 four o



### th0 protifiionr



### or 

### tar 8 l tomnl4 4 and la the above othsr 

# l p?lluable.iew#, 

### to ba trutad 

### by lroumskeeo8, thlr item l8 hi8 BO624 es a llablllty qi tha 30ottf 

### ror the pup088 

### of detrnainlng

. itl 801WlS7."

beastit 8OOist 

### rrm 7ou.r lsttar tint 

### the rmtrrnrl @row4 OOntOStS th. rtiidit7 of 

### threbotr 

### 4soorlbed 

### and ha8 St?Oo& $O?MSOfi thsnto, qe hem 

### sarlow doubts es 

### to t& authcrlt7 **or** thr 

### sooiaty to lsaus rush **0~rtiri06t0** an4 serlousl~ 

### dmbt thet a ju&gnmt Ootid 

### br reooYerod &&Afit th. 6OOiSt7 UAdSt ths ieOt8 **Stat*&** but it 18 cot a.OsS Quutloc8 Snd we 40T ia taifi OpiCiOO t0 +lOfiOC thO#S' a PBS oa nm*
I+Is our o~l~Im, under the raoto otatod, that uels48 aed until a ria &Qasnt 

### of a oourt 0r 

### oaapetqnt &rlr4iotlun la 

### rwdomd OA 

### ml4 *artlfloetr, you rhmaldnet 00n814rr rcld 8eirimcp ns e lieblllt~ of tbo socisty estWtiCC it8 8017ellSy. 

### Vary truly yOU8



# P APPROVED OPINION 

### 00YYrrrEc