THE ATTORNEY GENERAL
OF-XAS
Hon. William A. Harrison Opinion No. C- 2
Commissioner of Insurance
State Insurance Building Re: Whether a certain security
Austin 14, Texas deposit made pursuant to
Art. 7.15, Texas Insurance
Code, may be withdrawn even
though trust obligations of
the depositor are still out-
s tanding.
Dear C,ommissioner ,Harrison:
In your letter dated December 20, 1962, you requested the
opinion of this office concerning the withdrawal of a deposit made
pursuant to Article 7. 15, Texas Insurance Code. You state that
the State Treasurer is now holding the deposit which was made by
Guaranty Title and Trust Company for the purpose of qualifying as
a fiduciary under Article 7. 14, Texas Insurance Code.
The Legislature expressly repealed Article 7. 14 and 7.15 by
Senate Bill 165, Acts 55th Leg. R.S. 1957, ch. 388, p. 1162.
You state that Guaranty Title and Trust Company transferred
its entire trust operation, including all fiduciary duties and all prop-
erty held in such capacity, to a corporation chartered under the Texas
Banking Code pursuant to H. B. 226, Acts 57th Leg. R.S. 1961, ch. 125,
p. 243. H. B. 226 provides that “the power and authority of such cor-
poration to transfer and assign its fiduciary business to a State Bank or
trust company--- shall expire on April 30, 1962.” However, you
enclosed with your request a letter from the Guaranty Title and Trust
Company, which reflects that the transfer and assignment in question
was executed prior to such expiration date. You state that Guaranty
Title and Trust Company has since been merged into a corporation by
the name of Guaranty Title Insurance Company and that this company
has no authority to act in a fiduciary capacity and is engaged in a title
insurance business.
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Hon. William A. Harrison, page 2 (C- 2 )
House Bill 226 specifically authorized corporations, such as
Guaranty Title and Trust Company, to transfer their trust operations
to a corporation chartered under the Texas Banking Code. By the
terms of H. B. 226 the successor corporation assumed and is now
charged with the fiduciary obligations of Guaranty Title and Trust
Company. It may be assumed that the Legislature intended a full
substitution of the new bank and trust company by virtue of the pro-
vision in H. B. 226, which states that the naming of the predecessor
corporation in wills and other instruments shall be deemed to,be the
naming of the successor bank or trust company.
You state that the successor corporation is a State Bank. State
banks are not required to maintain a deposit with any state agency in
order to exercise fiduciary powers. Art. 342-301, V.A.C.S., and
Art. 7425b-25L. V.A.C.S., both as amended by, S. B. 41, Acts 57th
Leg. 1961, ch. 30, p. 44.
Therefore, it is our opinion that upon the transfer of its entire
trust operation to a successor bank company pursuant to H. B. 226,
the deposit of Guaranty Title and Trust Company was no longer required
and it may now be withdrawn.
SUMMARY
The security deposit of Guaranty Title and
Trust Company made pursuant to ,Article
7.15, Texas Insurance Code, may be with-
drawn.
Very truly yours,
WAGGONER CARR
Attorney General of Texas
BY
Dudley’ D: McCalla
Assisiant Attorney General
DDM:lmc
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Hon. William A. Harrison, page 3 (C- 2 )
APPROVED:
OPINION COMMITTEE:
W. V. Geppert, Chairman
Frank Booth
Cecil Rotsch
Marietta Payne
Stsnton Stone, Executive AssIstant
Waggoner Cam, Attorney General
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