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~~ lullma e.nb oat11 

a iml judgupot ir roedraW M 

-* 

Your requa#t iOr OpialOn ha8 bean rsOeitrd Andy oeretul1y 00nsie4r0d by thlr ll.partzI.nt. fie quote from your r.- 

quest am rouana 

l To xePa r a teln~eo ol letp0r , ~lla e, Tex a e, 

(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 De 

19" 

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 t be in the past them was e-~ortedly lssllsa by the SOoistg: to one BI J. O’keOffa a 

Cmtlfioate whereby the Society jmr:;ortedly obll38td 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 nhioh wo 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 

lag whothcr or not it la l o wont tbrn our 

d~trmliaatlw would ht. to be &et it ir lawlveat but l wh 4~tomlnatlon muld not bo 

nqulr a it the Oortl?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 6rrid6rit 0r 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 lad-it7 l ~anent 

jollltly in rtatuto 

ahnod and arknowbdgod 

an4 hi8 rir0 hho, T 

r0m by I. Y. Ko;klna 0 l tetu to us, er a . 

eapl.7 fiol~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 thr wtiri0at0 18 In th8 r0m 

hereto etteohad. 

=Th t 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 a ny 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 it wea lsstwd WlUlout .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 %I 

eretloaa~; end that, themfore, 

any orrot baotmo'en obllgetloa or fire4 lieblllty o? the dwldty 

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 ., em full~mvl4o4 y 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 to mnl4 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 thr ebotr 

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 40 T 

ia taifi OpiCiOO t0 +lOfi OC 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 rhmald net 

00n814rr rcld 8eirimcp ns e lieblllt~ of tbo socisty estWtiCC it8 8017ellSy. 

Vary truly yOU8 

P APPROVED 

OPINION 00YYrrrEc