THE ATTOFWEYGENEFCAL 

WVILL WILSON 

A-rroRNEY OENERAL 

Hon. Zollie Steakley 

Secretary of State 

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 of Art. 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 of a titIe insurance company. The names are: Texas 

Title Guaranty Co. Agency; Community Title Insurance, Inc.; Statewide Abstract Title and Guaranty Company. 

Article 2.05 of the 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 of the purposes 

contained in its articles of incorporation.” 

In our 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 in 
Hon. Zollie Steahley, page 2 (WW-895) 

contravention of Article 2.05A(2), above quoted, while the name ‘*Texas 

Title Guaranty Co. Agency” is ambiguous in this respect, but violates 

subsection (1) and (2) of Article 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) of 2.05A quoted above, since the 

necessary wording is not used in the manner implfedly required by this 

subsection - that is, in a manner which will help disclose that a business 

is a corporation. Absent this construction, it is just 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 in the business of making 

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 of Texas 

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