OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
QROVLR SELLLRS
A.l-rom4~ QaN*“*L
lo no m h l e Jelme J8re a
lIta t0 Tr e8mr er
Auatln, TeX88
De8r Yr. Jamem! Opinion lo* o-7410
C
mbicb re8dm 8s fOllOTs:
0 Of 70x88 BO8rd
Cnrtodlsn the
of the U. 8. Trust
Id cOmp8ny formerly
Ltd., 7800, TexPm:
$ 72,OOO.OO
5,778.OO
a,a&l.oo
Mt Of $476-00 e8eh 11,876.00
so.aao .oo
Shoem8ke gO81 gmt8te LO8n 10;000.00
e A Tlte Real S8t8te Lo8n 5,400 .oo
$139,3ti0.00
k&r-the desire of tbl8 comp8ny to withdr8w tbe 8b-
rtr8ct8 pert8lnlng to tbe 8bOVe llrted aeourltlem, 8nd we en-
0108e herewith copr o? out letter of 8utborltj from the St8te
Bo8rd at ~n8Ur8nOe~(bIE8Il8mloner8 wbereln the Bo8rd 8UthOrlXes
thla relwme. .'
% conneotlon rlth 701~ Opinion lo. 0-4836, we klnd-
I7 8@ 7011t$ ple8ae 8dTise thlr Department If this rele8.e In
perml881b1e.
ROaOr8bl8 Jesse J8mes - page 2
Wo b810 rx8mined OUr Opiaion Ho. O-4636, rbloh Se
gito you on April 24, 1942. In 7Our oplSlOn rOqU8.t in 1942
70~1 8SkOd Shethrr it 888 neoeee8r7 for 70~ to h8re l 888ig-
mmt of the 1188 SoSwIng the not88 depo81t8d with the Bo8rd
of Inur8noe Oomml8elon8re e to be held by the 2t8te TrS88urerr
Und8r the pr~tlo.lone ot Art1018 4282 Of th8 2OVl8Sd Civil Dt8t-
Ptee, 8nd whether theme 8ee~gammte mhould be m8de to the 2t8tS
%e8eUrer or to the Borrd Of Inmr8nOe C~maleelonore~ 8nd rheth-
or the7 abould bo pl8oed on moord in the eomt7 SherS tbe prop-
erty is loO8ted.
In rep17 to th8t inquiry SS uSSd the ?OlloWing lm-
II-W
Sin 8ddltion to brtlng the note8 tr8n8ferred
to 7011, before the notes 8re 8oaepted an 8bStr8Ot
lhotzld be furnlrhed ahowing th8t tb8 notes 8re 8
first lien ou the land. YOU should thm bold the
8b8tr80tt together Slth the tr8notrr of the notes
in your posSeSdOn, 8ftar b8vi.ng first Tllmd the
tr8nSf8r for reoord ln the oount7 Sbere the 18nd
is 1008tSd. The expenrs lnoldent to recording
the tmnefer ot the notes Should be borne by the
depo ~1tar. Before 70~ 8re 8UthOri8Od to 800ept
8n7 SeourltlSe for deposit tbe l8me mmt be 8p-
proved b7 the Do8rd of IneumnOe Comaieelonere.
It IS the dut7 oi 88ld BO8rd to rppnlee tbS Se-
owltieS 8nd p8SS upon the queStIOn 88 to ShethSr
the r.81 SSktS 8SSUPhg thS 8OtSS 18 Worth 8t
lS8St double tbe 8BOUSt Of the Bote8- It 18 8180
the dut7 ot uld BO8rd to h8ve the title oxmined
8nd determine thrt the notes 8re 8 firrt llsa On
tbe ISad. All o? thl8 upen~e Is to be borne by
the depositor-’
If th8 Seaurlt7 h8d to be sold In order to oolleet
the notes tb8t 8re on deposit , It Sould be helpful If the de-
p8rtaient h8d 8a 8b8tr80ts but lt IS not irper8tlt8, 8nd thS
purob8eer oould buy tbe l8nd Slthout being ?SmlShed 821 8b-
8tr8Ot. The quertit3n of b8Ving the 8b8tr8ot left with tbe
note Is 8 attrr lodged 18rge17 in the di8oretiOn of the
Bo8rd o? Insumnae %muiedonerer tion duty and reeponei-
blllt7 It IS to determine whether tbs lrOurit7 oifered 18
8ut?lelent. In p888lng upon this qUOeti~~ tbo v81UO Of
the Searrrlf7 SlthOut 8n 8betr8Ot, 8nd the +8lue of the 88-
ourlt7 wltb 8n 8betr8ot 8bOuld bS t8k8n lnt0 OOneldSr8tlSn
b7 ~8ld Do8rd*
lonor8ble Jesse J8mee - Page 8
It 18 OUF Opinion th8t bo?Ore 7OU reO#iva 8ny notes
to bo held 88 nourit7, 7oa should b8re S tr8neier of s8ld
uSte8# 88 lt8ted in OUr Opinion Roe 0-4836, tr8nderring 88Ee
to the at8te Trnmaror of TeI8r, 8nd b8te 88me dul7 reoorded
la the oount7 where the 18nd Is l.oeated. 18 rddltlan thereto
the Bo8rd of Inmr8noo cOmmi8eionere 8hould rOqUirS 8n opin-
iOa Of 8n 8ttWIle7 8t 18W , OSPti?fin& t0 tbe ?8Ot th8t in hi8
oplnloa tbe tltle 18 ole~r urd free Of 811 llen8, 8xo8pt the
one rbloh 1s beinK tr8neierred to the st8tO O? TeX88.
If, In the opinion of the 808rd Of Inmrmoe Com-
leourlt7 18 suftlClent ~lthout ret8inlnR the
lleelonere, th e
rbstr8Ot8, then it ~111 net be nt6eeMry for the 8bStr8Ot to
be left wltb the Oo8rd o? Inmr8nOO COmm1es1Oaere or flied ia
four dep8rtment.
In your lettrr ml8tlre to the lomm IU question,
70~ hrre turalmbed us 8 oOp7 of the letter ?rOm ~onor8ble
George B. Butler, Chairman of the Bo8rd o? Insur8Uoe Com-
missioners, th8t it rlll be s8tlsf8OtOF7 for 7OU to rele8ee
the rbstract.8 Involved In this inquiry. Shae the Board of
Insursnce Comml~slonarr thlnke tbs seourlt7 la autflolent
rlthout the abstracts, 7ou are authorized to release same.
Insofar as this opinion IS In conflict with our
Opinion Rn. O-4%35, same is overruled.
Very trial7 7ourr
AlTQRF?ET
GStiERALOF TEXAS
B7 a&----+
Gee. ‘1. R8reue
ASSISTAT‘