OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
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Hon. L. S. Johnson - Page 10
Since the plan now under considerationdoes not "aome
within the purview of Article 152&a*, in avower to your question
(a) it is the opinion of this departmentthat certificatesof such
types are not subject to the limitationeand restrict&onecontained
in Article 152&a and need not be approved by the Banking Commissioner.
Therefore, we answer question (a) in the affirmative.
Article 696 provides as follows:
"Each corporat!.an,oompang or inditidual,doing
business in this State a&a bond invfbutment company, or
company to place or sell bonds~ eertkkficatesor deben-
tures on the part&al pa: nt or inet&Xment plan, eha.U
depotit with the State rmasumr, &IIcash,or seauritiee
approved by said Treasurer, the sum of five thousand
doU.ars, and shaU deposit eea~%*annuaUyntth eaid
Tmmsurer, in oaahor aeetMt&er, te be approved bysaid
offiaer, ten p+w Oknt 0S all iibt rez&am mchved until
the sulndepocritedBa#)antsto:ems %.
mndmd thvusand d&lars."
From whet we have .&Ld la &M$’ tiequ&;onn~~~~~~yr
opinionthat it neeessar&ly poL10ws th& the
Board Olr~iPboatsrn
,FCooparativv ths @thy QfbOSld8,
certlfPcatesOF debentures as vo Sole 6%. On the
contrary, it amvmta to c sale of instaxlwmz: pl‘&u%.
Therefore, it is our epiai~onthat avmpany 18 not requ%red
to au&a,the deposits set forth in
9n view 0S our bmnwx to que83,ion(a}j it
guhrer question (c). We t%rkmm queatibn {d) Pn the
Yours vvry
JR:djm