OFFICE OF THE ATTORNEY GENERAL OF TEXAS
AUSTIN
GROVER SELLERS ,-.--..
ITTORNLI QLNLRAL i
iiononblo If. A. tutlron, Comlrrlonor, ‘-‘-;-.,
L --.
..tota ~partlmL.t ot Ballkln4 _
AuCtlC, T8xa8
dear Hr. Jamirons
38 I Authori
8nd loan a08
Your reguo8t for an o-$nix
a5oviasubJoot-mttar i8 a8 f
G. I. aila 0
vhrthw or o
out in the A
our state la
~8 tt,erurorcl purt
thet both the .retarid
8 &i tdWYJ&AiA~ 8R to rhothor Or
($8 aud.lort aeaoalbtlon8 raag law-
rstersns under the plan outl.inad
that aa an8urjjto our inquiry all1
inVOlT l OOn8id6ntiOA
Of .WtiOh8 4, 7 md prhaye
xtlolu 11 ot Chapter V ot tau %rs8 !.%nki~ COda
and rill lnvolre ieotlon 38 of the 3uildIce 8nd :.oan
LaW8r
-%e em onolosi~ her~vlth a oo:g of tho bar-
?OOOILWl'8 iioedjurtwnt AOt Ot 19w( tO&@thSr Ritti 6
6op.v of the SOgillStiXi8 ~rmul@itib under tba ..Ot, 88
laedel~all~blo thtou~.ht&c orrfoa of tha 'imturen8 .A%-
alclatratix..
!
eontum per annui an6 Sk811b0 oblr in tull hi not
more then twenty yeare rtrator 18 authpr-
T&r Ai&i
ixed ana diroctcrd tO@Wanton 1O8ll8 t0 T6kZWl8 8Uby
J00t by ttu :a-~ririonnr
or tail8tit& 00 wp0r06 appll-
c a t& MM66 to
b jWr 8OM tir,i, l8sOObliOti8, 8nd OOPI
porntim an&to ~orbrnanta~ rgenoler aa& oarpvratlm8,
l1th.r utate or Yedord.
39Jxcwa ox cot~t;~TIu8 GY HSf%
Y&o. 501. (a) Aay rpgI.laatlontatabeby a ratomn
URdU th in5titi.@ tOr th b & M ?@ Av Of l GUI tp b U M b 6
ta &UilWh88l45I’b8idbJitial
i&'O~rty O? iJ3OOMtl-UOt~
a duttulng OA unlaprorbd property omod by him to bc
Obou&ud 88 tJ8 hoan 8I.ybe 8JQWOV04.by the A&dd8tre-
WrotVokruu'/;tt8ir8 itho flIla8-
l(~)thtth8~rO80~Ot8adh~M8r~bo
a8bdtO? Wi!witfO? ruohpro&m'ty t0 :~ajW'Oha804
Or OOR8tI'UOkd by bhr ?OkW#’
“(2) that the aoa
-qullrd in 8W
mMt or t&48
@O,tbara $WOper m tiOIlto th0 VhWUl'8 gFb6-
aat end mtiolp8hd Lnoucw rnb lxpu18er; and thet
thb Adtut. aad OaxaditioA @t thbsprogltty 18 8U0h
88 t0 k rtitabh for hubI6 -8; M4
“(3) that the purohaas prloe pld or t0 b6
paid b-~ thb votuaa t0r ru0h yr0 a?ty or tie con-
8tNCt iOR bOoSt,iJLOhd&. thb vaP W Or 8hb IA&i-
prOrs& tit, do.8 not bleed th. roaaoasbh liOXi2d
rrlur thorooi 88 dotoraiao6 by propor rpp&liul.
w(b) ay 'a~piioatbn tor the guerantJ ai u loan UC-
dar thti scotlon t0F the purposcr ot niakla6 ~wepairr al-
terntlxia, or baprovom2nts in ,orp3yl.ng6e2L?+en& Lo-
“(2) that0uahproportywlllboWulln
and rewoaebly moomary for tho lffloiont end
auoo*rerul plrrult of otmh oeoupatioa;
‘(3) that the rblllty aad oxporbao~ of the
roter~, and the eoadltlaar m&r rhloh ho
aos to pumue weh ooaupotlon a~ moh Jr
pz:
are l,r reoaoMblolikald~t& all6
ba ruoaoutul b tha jurmlt of ruah oodhpetion~
“ART. b.,
“Ho lta tm
ma 1 r r ta ti
or
b yF eel lta to
“Ho otato bank a&f1 IpIpIt any porooaor moor-
pomtlan to beoom lndot)rrr or in 4 otarr vaf I bk
to it ln a n ammnt In lXQ*AOof t#ntpflr* par mat
255 or it4 orglt4 end wrtliUd rurph8. Tho gtmme
Iindebted
) or ln l4 other rap liable’ ohdl be 00mm0a
to lzioludeliability rher or othwslror The lboro
llmit&iOA S&Ill IIOt t0 the ~O~CJV&U CdUIWO Of
lnd6btsdnooror llab
“1. LieblllW 08 oaWroor or tar of m
nrohlorbuo&eopoporuBaouo
to the beak by $ho @oUta& m Wad %t?!f?i-
qqldltlnt4a~wuraoof&".
by bIllaof axoh
.2. Xadmb~dm.8 lvl6o o o ed
o r& r efta
4 mme& fia lo tully
t o x lr tlngr eluo 83r
. roeun4 b y l Lionupan wdo in tmnoll ri%h ahip
p$dzdor bill8 o f t4 a rooapereblo lnrtmaontr
tcl
.
boadod wamhouoer & llrratom ulth rrllmhow or llo-
v8b-emoai tf rttaohod, uhoa the ~eluo al the aoour-
lty la not P888 then one hundnd tuaa -fir0 par oont
&~~.l~of the irdabkdsumm end ‘a b&m hburoat
la 8dbqurm.yb8pna kgakrrt10011,
rlth ia-
•U~MOI p~~i0i08 or 00rtifi08t00 0r iru~p08 8tt8~.b
od.
6. Bond8 aad M&w b&aLLy lrsakd ewual obll-
~tloaeof tho 3tete or Tatro or or My oauety, dty,
awlolpmUty er polftla8lmub4Svlefon UurreU la6 ia-
brbtadm8r Or t&a Wtod Z-tot.8 OS &wrio~ the Z@or~-
8tnwtlanllaanoo corpemtloa or oblur trul~n~llfj
or lgeaayof the lirrltiod
~teit.0~Govexem8xht.
"7. my portianof an indrbt&noar clhiah t&w
wtba steter Cotomaeat, tie Reooaotrwtloa PlaaEee
corporatl3n or 8~ ot&r l or inrWnt&
or 6h0 unitba ft8t00 aotowT her rm8mdltlo~ XY
ewobto purohaw or ha* uneondltioa8~4Paraatm4
88 60 p8y8lootor both prirmlprl an.4 latorort."
vw%wnt
vhlehsuohbut sowl4
lllJunn 100 rrt-
l4rrsaauoMlhl¶k urbtM'ultkyof8 olp"loM
or larrsbsnt shall a04 wwma8a 8 tittloa OS
any $anrl pwisiea OS th4Mmlt*s of us SIta**
.
Tlwro i, also inoorporrtadin this seationa prorlslori
as follws:
wt sdrln6 whetha the rdanl savinga and
“d? uas &mist&d la this strk &VO bw2103.0ma
fRon ass&la
WMih ponr w a?& tU80 luws.
tlrlos,l*thorlr~ lar~staeats u .a
the a rovFo$?Z%k E c uwlwlo r nr 8
,w la a a beyth 0
4 8th
Le&s !iturnlt ltc ngtilarwaolea~ .oloare unwluing haeru,
to hold thbt this la 8 mAid pM&l3nnr xc is In vi&tiion or
lirtib II 0r th Cofditution, La the it SOW~~~U~W UI 0rf0rt
tha puP0 or the k slmtureto debgak to the BaclnJq colw
ix=srluMr--e mAher OS vho s%eootln d8l%utmat of the Oororn-
am--a kBgbl.st11.tun0t1on.
~onerablo Ii. A. Juleon 0 pago 11
W h a tlwuntm to 8n unwarranted delegatiaa of legl~~la-
g~wmwym ham been the cubjsot ai fr eq uentaonsider8tion by
. Panama Refining Co. v . Ily8n (U-8.) 79 L8w Ed. 446,
16 a leading osme upon the question. It III tbero uldr
g60r also, from the begInnIng of tbe Qovern-
memt, the Congresm b8s aonierred upon ueoutlre
ottiaer8 the pousr to uke regulatioam, -- 'not
tar the QOTerltment Of their dOp8rtWUtm, but for
8dm~nimtering tbe laws whlah did goram~' United
State T. 220 0. S. 606, 5171 66 L8W Ed.
Qrhaud,
sea, 557; 81 8. c. 4309 &ah regU’l8tiODlS bboen,
indeed, binding rulem of aOnduat, but they 8re
valid only am oubordin8to rulea 8nd rhea found to
be within the tramwor& of the
Aa to the tr8ammrtrtion ot oil produatlon in em-
008s Ot State pi~rI!dmsibn, the ~Oi~~x’e#~ && dOal8r-
ed no polla~, m jatablfsbed no #ud8rd, -aid
iiikirno
-- 111 e. Tbore lo no reaii&memt, no GXiTZoa
of airauu-i- 8noe~ unctions in rhfah3& tnm-
jZrtatloa fi & & 8llowM z pr3iiSTGZ. -
Ohlei JUstiaO AlOX8nder h88 s8idl
=It is 8 We~l-O~t8b~iShed @nOiple Of aOllSti-
tutlon81 18T th8t 8ny at8tute or ordiinmae regul8t-
ing the aonduot of 8 18rful businemm or industry
8nd oathorislngr the ma!Itlng or ritbholdlng of
liaenrea or aerinlts 80 the desianatsd OffiOi811B
rrbitrarily ahoose, without met&r forth a
,%??lliaenses 8nd those not so entitled,
unoonstitution81 and Void." - nailrord Commissioa
T. 8hOll Oil CO., 161 6. w. (2) 1022. (ibRph8sffJ OUre)
Chief Juetiae Phillips h8s uld:
"A further rlae in the erdinanae ie that even
with the neaeuary aonwmt of the property owners
.
.
.