Honorable Zollie Steakley Opinion No. WW- 562
Secretary of State
Capitol Station Re: Authority of the Secretary
Austin, Texas of State to accept and file
Articles of Incorporation
which contain a stated pur-
pose clause and related
questions.
Dear Mr. Steakley:
You have inquired concerning whether a charter should be,:filed
containing the following purpose clause:
“To eel1 prearranged or prepaid funeral services
or funeral merchandise (including caskets, grave
vaults, and all other articles of merchandise incident-
al to a funeral service) in this state under a sales
contract providing for prepaid burial or funeral bene-
fits or merchandise to be’delivered at an undetermined
future date dependent upon the death of the contracting
party”.
I respectfully direct your attention to Opinion of Attorney
General Mann No. o-2736written by Ardell Williams. I think this opinion
in its answer to the third question there discussed will resolve the
problem with which you are concerned. As I understand your question, your
office feels that you may be precluded from filing this charter because
the business described within the purpose clause may fall within the pur-
view of Article 14.37 of the Insurance Code, requiring burial associations
to organize under Chapter 12 of the Insurance Code and be regulated under
Chapter 14 of that Code. Article 14.37 Is a codification of Section 2’3,
Senate Bill 135, Acte 46th Legislature. The third question discussed in
Opinion o-2736 concerns an activity which would be within the purview of
the proposed purpose clause. That opinion holds that euch an activity is
not governed by Section 23, Senate Bill 135. However, you must require
the purpose clause to be amended to add the following restrictive alnguaae:
“Provided however, that this corporation shall not
engage in business a8 an insurance company or a8 a
burial association”.
Honorable Zollie Steakley, Page 2, NW-562)
The corporation must, however, comply with Article 548.b,Vernon's Civil
Statutee.
Very truly youm,
WILL WILSON
Attorney General of Texas
Wallace P. Finfrock
Aaeietant Attorney General
WPF:aw
APPROVED:
OPINIONcoMITJ!EE:
Geo. P. Blackburn, Chairmen
Marietta McGregor Payne
Marvin Thomse
REVIEWEDF~RT~~EAT~!ORNEY
GENEBAL
BY:
W. V. Geppert