R-373
Arix-rmiw 11. TEXAS
April 25, 1947
Rex #he sppZioab1lit.y of,
the Securitfes Act to
a group retirement
plan issued by s non-
profit group*
Bon. ?sul H:l!tpwn - F+age 2, W-165
.
eamttnga Oc .any ooaptbny, fnvea,tment con-
tmot, or any other fnstrument commonly
Ifnan na a sauaurlty, vhether similar to
tborhbmn we& t0 0~ ti0t."
Xt will be noted that the “certificate” a-
buw WfopP8d to i8 A& transferable either on its
race 03 rm84lr l&o prooI#iahs of the Plan, but on the
Ot4@fml7 i1 MRIlJ ertti0 of the fact that the em-
p&wee mrrd tharsfn IS a aubsctilber to or a member
of the noa eulbjwt to lta tense, sad provfsfons.
ft doe@ not appeer from either ,the Plan
S@b8iCkd W fraa ottisr infoxvuatian that the employee
i.8fa m btmbp 8dioltad by the employer or the com-
rlttw to W.W a member of the Plan but such member-
shtp f.a made qvaflable to him after he has (1) com-
iW&@at& in rfit1ng’t.o the committee of his acceptance
of the %eJlm: 8nd caadltions of the Plan on the form
ppcrided by the Wmwlttee end (2) authorized the em-
ployer ko lfritin@ to dedwt from his compensation the
awtplbruticm spsotfbd In the Plan (See Article II,
P@mg~W@t 2 ob tin Wan). kll caattibutions to the
$wzrF C?n Ilm am to lab plrae in the State
D (8W brC;Po’la ?III, hramph 7 o? the
?lrnf
~l!he interestop shape of the em-
bsasffafsliatepest
ployee In tha Plaa fa payable to him in va~fng
amounta e&xl dependent upen certain contingencies 6
(8ee Articlea l’V 8nd V of the Plan). Such interest
the
Paragraph 2 of the Pian)~,
AtthoughMu Plan oontmfxumany fertures fn
Cowon WfthglWIp ratlrametat Inawnce, such as contribu-
tPoltlr by employer and employee, baaed on length of sexv-
ice 08 other staflar olassiflostfow, and providing for
e aua pilpble upon aetiain condftfoas upon the happening
of aerts%n eventwlftles, nevePtheleas it is not an an-
nuity ma sWLI tepm La gknerellyunderstood.
!i%a legal effect of the Plan fs to create a
sevfngs fand for the bruefft of the employee, the mansge-
ment enb oontrol of which is vested in the employer, the
committee and the tpuatee, which fund 1s to be disposed
of by the trustee upon the contiagenofea set forth In
Articles Iv and V of the Plan end thepefore,the Employee
Iton. taul H. Bran - Page 3, v-165
Thw Tsvs sw0urfflwsAct ia not sppli-
orblw fo thw YSaplqwwRwtlreawnttlsn of
SafwwayStoma, Imu., the 3(1'mwbwfw,s non-
pmtlt rwtlmmmt pl8a with cwrtlficetes
nbt subject to aalw, fnnsfwr 0~ assfgnment.
~~~~~l;~,dp~~~~~~~~~~ll ep-
Yaur3 vwry truly
ATTQm @BSBRALOF TEKAS
C. K. Richards
Aesfstent
Untitled Texas Attorney General Opinion
Combined Opinion