## THE 

# ATTOFWEYGENEFCAL

WVILL WILSON A-rroRNEY OENERAL

Hon. Zollie Steakley Secretary ofState Capitol Ration Austin, Texas July 25, 1960 Opinion No. WW-895 Re: 

### Whether the names of certain corporations or proposed corporations indicate or impIy a purpose to operate a title Insurance company in contravention ofArt. 2,05A(2). Texas Business Corporation **Act.** Dear Mr. Steakley:

You have asked this office the specific question, whether the names of certain corporations or proposed corporations indicate or imply a purpose to 0 erate a title **insurance** company in contravention of**Article** 2.05A P 2). Texas Business Corporation Act, where the purposes of such corporation or proposed corporation do not include the operation ofa titIe insurance company. The names are: Texas Title Guaranty Co. Agency; Community Title Insurance, Inc.; Statewide Abstract Title and **Guaranty** Company.

Article 2.05 ofthe Texas Business Corporation Act provides in part as follows:

**‘ A,**  The Corporate name shal1 conform to the following requirements:

“(1) It shall contain the word ‘corporation.’

‘company,’ or ‘incorporated,’ or shall contain an abbreviation of one of such words, and shall contain such additional words as may be required by law.

**“ (2)**  It shall not contain any word or phrase which indicates or implies that it is organised for any purpose other than one or more ofthe purposes contained in its articles of incorporation.” Inour opinion, the names “Ccmmuntty Title Insurance, Inc.“, and “Statewide Abstract Title and Guaranty Company” do indtcate and imply a purpose to operate a title **insurance** company inHon. Zollie Steahley, page 2 (WW-895)

contravention ofArticle 2.05A(2), above quoted, while the name ‘*Texas Title Guaranty Co. Agency” is ambiguous in this respect, but violates subsection (1) and (2) ofArticle 2.05A. The name “Texas Title Guaranty Co. Agency’* primarily suggests acting as agent for another entity named “Texas Title Guaranty Co.’
. However, if this be the construction intended, the name would violate subsection (1) of2.05A quoted above, since the necessary wording is not used inthe manner implfedly required by this subsection - that is, inamanner which will help disclose that abusiness is a corporation. Absent this construction, it isjust as consistent to reason that the name implies the engaging in the title guaranty business and the business of acting as agent for a title guaranty company as to reason that the name implies that such a company will act only as agent for a title **guaranty** company. Hence, the name also violates subsection (2). It is evident the words “‘Community Title Insurance, Inc.” indicate or imply a purpose to engage in the title insurance business. Llhewise, the name “Statewide Abstract Title and Guaranty Company” indicates or implies that such a company will engage inthe business ofmaking title guaranties which amounts to the engaging in the title insurance business. See definition “Guaranty Company,” Webster’s New International Dictionary, Second Edition, p. 110; also Attorney General‘s Opinion No.

‘opw-440 and authorities therein cited. SUMMARY The names “Texas Title Guaranty Co. Agency, ” “Community Title Insurance, Inc.,” and “Statewide Abstract Title and **Guaranty** Company” violate Article 2.05, Texas Business Corporation Act. Respectfully submitted, WILL WILSON Attorney General ofTexas

APPROVED: OPINION COMMITTEE: Gordon Cass. Acting Chairman John Wildenthal Bob Walls Paul Floyd 

# By ?!h@ k&j&&

. er enthin Aztistant Attorney General

REVIEWEDFORTHEATTORNEYGENERAL BY: Leonard Passmore