OFFICE OF THE A’170RNEY GENERAL OF TEXAS
G-
. AUSTIN
AOKI. if. J. Lawaon
seoretary ot State
huntIn, Texa8
Dear Sir:
Your letter ot
opinion or this Deprtment, .
&mated to the
sbo9e nsmed 0
ahortor *or0
fo oopy or that anal&~
of CNr as8ootatlon rhall remain in
of fifty year8 from data beeof, and
, under tNa ehartsr hare all the
p the law8 erirtlng in: or that may
oted by the State of Texa8.
*This lnstrtnnentHRLBmwar filed with the Seorebarf
of State, but we hare been furnished with a Oertlfled oopr
of the amendment, end we am attaohing it to thin letter.
I B
~a. vi.3. Lawson, page 2
qou will note iro;lothe last ameadmant that tNa
corporationdoes a fraternal benefit insurancebmlness,
and as such is under the supervisionof the Inauraaoe
cwullsslon.
ia raisa4 by this altuatlon is
-The question whahioh
whether the Slllne of the amandm~nt with tha fnruranoo
commissionextended the oorporate srlatanoe fifty year8
frou May 28, 1937, w whsthar It is naourrary for the
oorporablonto tlls another exWi%si~n oi existenOeulth
thie ot~los.
Tou wlli reoail that in your opinion NO? ,,o-3254,
you held that the Texas Indspeghnoe Life Inrurknee Come
&Ki8tOROe under tb,
oould not renew its OOrpCUTit8 prOYi8iOM
of Artiole 1315 a and b.
*'Weshould like an oplnl&n ~TW fan as to whether
the ohwter oi tha aorporatioa I8 now in good 8ttukdlag
under the 13uper9i8lon of the Iasux~oa~ Do rtmant 80 that
no further aman&montano84 be ill& l.nthre otiioe, or
whether the ohartsr &dmte6 by this ofiioo haa explrml by
it8 am &@69i8lMI) Md i&et OMW illaOOO~UlOO tith th.
proY~8ton8 ti Artiole 1315.'
YOUXXeq\iOd ,X0 8 ghOt@8%8tiOOWrtiiiOd
Aoccx~~panylag
g8py of the 4aaendarent
dated the tint day or June, 1927, tiled
wlah tha Seoratary or Stat0 on Inno 29, 1927, and with the Do art-
ment oi In~uranoa on the 16th by ot Jana* 2927, and a oertli P od
gthotortatlocopy oi a later aamndaurt, dated the 13th day of
May, 1937, illad In the Departmat oi Inraranoo. A8 to thla
later aaandment we aasume that it h88 boon prrseatsb to four
~Departsenttar flline.
The 8tatute8 ralatin& t0 amending and Wtadtig
Chartera Of private
GOIFpOra~fOtl8 St&k aa the One here fnYolVed
ore &tloles 1314 and 1315, VeI%On’8 Annotated clril Statutea.
Artiole 1311 from the R. C. 8. 1925, fn part, readar
“Any private oorporatim mpnlmd or inoorporateb
for my purpose mentioned in
thi8 title, mar WSnd OX @hang*
lts charter or aob ot lnoorporationby flliag, authentioatob
In the manner as the orlglnai OhaFter, suoh ammlmmt8 OT
&ages with the Sooretary of liltate.*
.san. W. J. Lawson, page 3
Artlala 1315 of said 8tatutes praridalrt
Worposations created for the oupport of benmlent,
eherltable, eduoational or rrrlssloaary
undertakinjis,the
support of nqp literary or soientiflouuderteking,the
wsintemnoe of a library) or the pronotion or palnting,
mueio or other fins arts, wh&se chartor h&r expired by
limltstloa,may revive euh ohartor with all the prtri-
loge8 and i~uaunltfe8am3 rlght8 of property, real and
psrronal, exorolsei7 en& held by it dt the date of she
ezpiretlonof its '#i& oherter, by filing, with this
oonasnt of 8 majority of fte rrteokho,ldem,a now ohartr
uudcr the prorislons of thin ohapter, roaltlng therein
8uob original pririleges and l0timiitie88nU right8 of
property, and by filing therllnrlth a oatlfled oopy of
such ortginal expirea ohart*t.*
in a 8t8oomrion ot tho quution
Before engaging
ralaod, laflaenoed by Orrrheldtingin o ianionO-3254
pM8umab~y
oled by you, m oall your attention to the faot ehat in raid
0pi~i0.awe weme disouasina;8 OOrpOration whose8Ob bu8iae88
and uot up ma nithla the rsqulrexaantrof Hotme Bill 903,
Qrd Leg. (Chap. 8a, Title 78, R.C.S.), oarr on a stat*
ddr bu8lnus af. mittually prctteotlng or lnrrru’
%i, the live0 or
fta imBbU8 buya8808iSJilOilt8. Such a oorpontiQa;~wu raqulred
to eo1a~4with thclprOvirbXm 6f tiil8 bill By Setitiioa 14 of
tha law or hats l%a ohuter, &paaimd under the genmav~llaw,.
repuled m rat&cod. 'i'h18law, nD pointed out in the opii3la0,
oapld not aperats to rapeal or ruoke an sxlatiag ohartw
pre~lou5ly granted prior to ltr expiration withwit atiering
lt an opportunity to wmtinue b\ulnasa under the aeu +egul.atory
3Aw. The opinion is not appU,cmblr to the Oer oratloa under
axdduation here, whioh, by @m plairr.~prQti8 i on8 Ot it8
ahartu, opratss under Chapter 8, Titla.78, of the statute8
applloablo to fratarnal benefit *oolcsties.
32-0hero rmhsr demBrlaLAed.rrcmth8 rOOOrd8 ill
your off100 thst shortly after the ariaotmtmt~of Chsp. 113,
Aots &9X3, an act def+kLfng a fmternalbmaflt 8ooiety
(art. 4620 3.C.s.). en afffdattt uaa iFled reocagaiaing the
applieablllty of that law to the oorporstion;ad w* furthar
au8uamthat under the pr@risioxaeand aamndmento Of the 191)
aot au thea and presently applioabla to frateraalbaneSit
aooleties the Xasuranoe~Departmes&t har rooogalmd lte axistenae
and eo oonduoted lte auperrls%oa,duly issuing to the order aa
annual lieenrs to oofiduot Its bu8fnSCeas a fraternal buttilt
6oolsty.
Briefly tmoing the history ot chapter 8, Tltle 78,
appllaableto fraternal benefit a~sooletlona, the flret mot
passed euthorlxlng their lnsoil;oration 8s suoh and d8tlalng
fraternal beaefft s~~istlma mm by the 26th Laglelature,Aeta
1899, Chap. Xl5 This law ,nrovlCedIn Subsestlon6 of See. u
that srtlolea of incorporationshould Btbte the terreof oar-
porete exlstenae, not to exoeed fifty yews, and required that
the charter be,filed with the Sebrnknrp 82 Stata. 14 further
provide% that suoh oharter may be amendo% et any tlm by f1Xn1~
with the SeoretaPy or state the derlred amndmente,lyey$ry
eohnowledged,ee requlrsb In obtalnina a ohartnr.
wcmW, this as&Ion provided for the ikoorporatlwsand the
Imuanse of ohvrtera to fpaternal benefit soaletles; In
aeotlon 2 thereof it provided for the oontlnulaEofb~lhesa
of all aeaoelatlons'eomlngunder its provisions then doirrg
huslneac but plaaed said a8so6latlons under the rups~rfnlon
cf the kaalrs~oner~.of&?urarrce in reapeot to tllins annual
reports and m&e. thr;a0ubJwt to sxcminationand certain regula-
tlona by the Coemlssiom&'.
Ths foreSoin&aot was repealed by Aots,ot 1909,
t%npter 36, First C~lls%~Sersloa,31st Legislature,belhg l
QRO and in Scot+ 14 thereat it
iDoreoovaprehetis~ve lser vd
80 those corporationathen angaged in the bualnur ai? OS 8hO
right*, powers and privllegss exeroieed or poarasaed under
its charter OF artiolea oi amooietion, not inconrl8teatwith
the eat and offering to'ruah oorporationethe right to reinear-
porete thereunder. Theas were not required to reineorpooratcr
eor required in their ohartex to adopt the pr~vislons for
Qr$eedlg n#r assoolettOi36.r
Tke Lcgls$attx~ein 1913, by an sot of the 33rd
Le6lrlatww, Chagtor lJ.3,repealed the 1909 not,whlohlater
euieotmeot, with subaeqasnt amen~ent~ to tsrlow 8eatianR,
constituteour'grosentUha_ater8, Title 78, V.A.C.B, SeOtlea 13
thereof, appearing in Temmn*s en Brtlole 4839, atibdanbidly
bxpreaeetathe eem purpoee and hes the taaine &teat a8'SW. 1C
of the E,Otof 1909, In prcvidlng thet any oooletl aaaagdl at
the tf.xein trans$tatlngbualneas In the State say eZavQi#O
aillof the righta, powers and privllsgos theu exe~'slead or
OSS~S~~ by it w%e~ its charter mot lneoneistentwith the
1913 sot, lf 1noorporatcsU.
P
Iian.x. J. Lawson, pa8e 5
It eeome oleu iron ths rorsgoing examinationQf
the law epplioable to fret6rna.l beneflt sooiefles et dlff~ent
psslads throughout its history that such corporationsas the
Grand Lodge of the Order of the Sons of Her&m ia the State
of Texas, iae@y orated ior the purpose of a benev’clent eduoa-
tionel or cQgr.i eable undrrtekin~, prior to the sot of 1499,
were never lnts&ed by the Legislature nor required to aerge
their rlghte aad priyile(t44granted under Chap, 8, Title 76
of our innureno~ laws.’ .Thelawaaki~ bcdlee epparently reaog-
nlzlbdthat aor~~aticus w!mss purpoeee eye ohulteble or bsneyo-
Le.ntsay aoquite rights end traheeot business without the doing
oi en lneuranoe bueinaes. A glene4 et the purpcee provision4
of the original oharter of the Order nlth rhioh we are ocnaermd
ehcwe the dual purpose, to pap health and death benefits to mam-
bera ahd their beneflolarie4en4 *to ersot and maintain e hum
for old aad needy members of the order end for the erphans of
members of the 0rZer.C
It will mther be noted that Ayt. 485 R.C.S.*
(m3. 30 of the 1931jk!bt), exampt8 frokslte ~proylePone oertelu
aooietiee einllar to .@and ox subordinatelodgee of Mesons,
Odd Lfsllowecm Tni~hts oi Fythlae, which do not is6us~insurence
eertlficetea. Furthers&ore, any suoh oorporaBionnmy forielt
it4 anmel ~permit to do mn 5mlnanoe buelnesa es a fraternal
benefit rooiety upoaehy numbar ai grounda eat out uader Chap. 6,
Title 78, of the lnatxranee laws anb et111 robin ltr corpomte
exlatence under thn proylalons of its aherter issued by the
Seoretarp of State uader the esarrel law.
Trusting that we haye rmde ourselves oleer with
respect to &lstlngulahlngbetween the typa of oorpoPetlon In-
~olycd 1::our opinion ED. O-325b end the one here pr4~4IOM
for oonel6eratlou,we ‘pr+ueed to the real end o~lp queatloQ
with whloh you ara oonoorned,towit, whether the charter *anted
by the Seoretsry of State has expired by ita own terms W QIlSt
be ramrod 1.naooordanoewith the provisicna of AstiC. 1315,
I?.c. s.
Rrtlole 1315, supra, prmides ior the revival o?
ohmtera of suoh aorporatloneoreeted for the suppcrt of beheyo-
lsnt, oharitable,eduoatlonalor miaeiontarp undertakinga,eto.
Hon. W. J. Lewmm, pegs 6
in our opinion MO. 04,085, approved ehl eddmmsed to you undw
date of Oat. 16, 19&l, we held thet the ohartar of a aorpore-
tion areated under the ae%e purpose aleuse may be revived after
five years fraa the date the charter had expired. Opinion Eo.
&&OOJ, therefore, ia applicable to the corporatfoli under eon-
rideration.
It is thererore the oplnlon of thla Ds~rt?nent
that e oorporatlon ohartared for the aupport of any benevolent,
eherltable,eduoetlanalor lalssionery underlieking,and whioh
operstes subject to Chap. 8, Title 78, F..I.C.S,,aLoa l’raternel
benefit’ aooietr, ia not euthorlaed to extend the period of its
oorporate exlatenas by amenUment illed with the Iasuranoe Com-
miaeion. A oompllaaaewith the provllrlo~ of Chap. 8, Title 78,
nil1 not sutfiae as a oomplienoewlth the general lewu for main-
taining its aqrporate exlstenoear e ohmlteble or benevolent
eorpmatlon. The charter of the Wend Lodge of the Cmler of
the Sanu of Herman in the State bi Texas having expired 88 e
benevolent or ohultable oorporation,It nay be revived in eoeer-
danoe tith the prorisionu of Artlole 1315, Ravlsed Civil Statutea.
Yours vary truly