4
OFFICE OF THE ATI’ORNEY GENERAL OF TEXAS
AUSTIN
Honorable 04 P. Lookhart, 0hrinm.a
Board of Inaurrmoo Comirr1on.n
Austin, Taxa
Deer sirr Opinion No* 04gsl
~0t adiri0m 4*00riba should s0t
be aonuldored a8 liebillty or
rratmni bsasrit rochtg m00t-
itr ro1v.n~~lullma e.nboat11
a
9 iml judgupot ir roedraW M
-*
Your requa#t iOr OpialOnha8 bean rsOeitrdAndyoere-
tul1y 00nsie4r0d by thlr ll.partzI.nt. fiequote from your r.-
quest am rouana
lTo x eP
a r a telnel
~o o letp 0r
, ~lla e,Tex a e,
(forwM.y Taea Logal ki.ne funoml soolsty)
la a fkatmael benefit roolrtf lnoorgoratd
and operating,purportedly, u&r the provislon~
of Chapter 8; Title 78, oi our &tired Civil
stetute8. It bar operated under a Cartirlcatr
or Authority room thin De rtment which. ha8 K&W
ls;lred, however, and it 19" 8 ocntlnul& to operate
under the h6ldorrr prOViSiOnoi the rtatutea
uatll a %nml Ca-tlfloato 10 rlthor lasued or
l$JeofflOell~denied.
“bong othrr romon~, the llrnmml Certlfloete
18 being wUhhel6 beoauee itr rsoords alsolose
that at mm t be in the past them was e-~orted-
ly lssllsaby the SOoistg: to one BI J. O’keOffa a
Cmtlfioate whereby the Society jmr:;ortedlyobll-
38td itaf t0 PRY to cwc~w~ th4 8um 0r $4,167
on a future bate, thr Certitioate being, 88 no
are lnforhd, rll~d into the rora of oertiflcclte
of nhioh wo are furniahlng 7ou a aopy barewith,
*If this obligotloa is to be Oharged ae a
iiabtlity 0r the soolbty, In emmining ati mait-
Eononbto 0, ?. Uokhart, Cbeimn, hgr B
lng it8 lmlrr for thr 08a or d0t0rriib
lag whothcr or not it laTlo wont tbrn our
d~trmliaatlw would ht. to be &et it ir la-
wlveat but lwh 4~tomlnatlon muld not bo
nqulr a it the Oortl?leatelr wt prog8rly
a llabllity Or the SOOiat~ln the rirou~-
8telm~8 bnlnoutllnedr
Cmr attorney roptumntiae t& .Sooloty,
la ordar to obvlatr 8tmh obj*otlon, baa 8ub-
titt0d t0 w 6rrid6rit0r f. Y. 110pki~8,thr
rnv Reridont of tha holot t0 th0 lrr00t
that th8 Swlety 'lr not 1AI’lbtad to B. J.
ovswta, toriaarPr~fiidwit0r ruoh moletp
. . . for beak sale?l*r or on any other (IO-
00uut.’ 80 has aubldttd to tu also en la-
d-it7l~anent ahnod and arknowbdgod
jollltlyin rtatuto r0m by I. Y. Ko;klna
an4 hi8 rir0 hho, T 0ltetuto us,er a .
eapl.7fiol~entand able thanolally to baok
up the leroaunt ) to ladmalty end MT. the
gookt harmbar ??om losr by rwwa of fiuoh
O@rtlt Ioat@.
*The ittomey eleo mteter to ue rerbelly
the ?OimVlIIg feOt8 whioh, ior the -080 of
thir opinion, you me7 la8uw to bo true.
vhat thr wtiri0at0 18 In th8 r0m
hereto etteohad.
=Th t lwh Oertlfloeta ua8 108u.d by
Mr. s. 1. O*furte to himmelt, purport-
ing to aot a8 Pruldent otulr&i10 he we8
lotrall7 Pre8ldeat of the Soolety, but
contrary tn the raoltel on it8 ?a00 4th.
out aAy rewlutloe 0r the Bar4 0r f&w-
tor8 or other proper euthorlcetion to him
so to do having been granted in eocordems
with the provle1on.eo? the oherter end
by-leu8 0r the aoolet7.
"'fhat,WAtI~~ to the NOital in the
Certlfloate, omdto aavbr ldvenoeU eny
rerh or lto lqulmltmt to the Soolaty aad
that the &ale&y we8 not indebtod to
mOOri ln any 8um or on a nylooowt
Wh6A suoh Certlflcate we8 irmued.
*
Eononbls O* P. Laekhert, Cbklnun, kgo S
*¶%a attoraq OTmfi up00 w hi8 rl8w8
-.
that th. CUtitiUt6 &md.d sot bo Set 0; es
a lleblllt~ot the 8Wkt7 for porpO8.8 of
det.l'dIii~ it8 SOlTrAOt', trl AOU, to? the
?O~OW%~~S68OIMo
vhat it wea lsstwd WlUlout .0n8140rr-
tionr
That it ram issue4 vlthout luthorlty
of th0 govarnln&body bring glron end
etldonoadin eroor4enorwith the oharter
end bplnrr.
CbSOFTO8 00 ptiisiO# Or ia-• iSSU@d
;&tdo;hFOU& it, 6Bd the Pa-At Of it8
eretloaa~; end that, themfore,
it oennot %I any orrot baotmo'en obllge-
tloa or fire4 liebllltyo? the dwldty
or bsoomo duo end payeblo unlos8 end until
tho Swl6t7 baOa6efi amply 8Ol.tUit end re-
mains rolront dth all opsrstlng lxpermes,
roln6umnoo prmluma, an4 legal rs8srv*8
MO~8UX'y iOr it t0 mUt it8 PliOy obli-
gations, lto ., em fully ~mvl4o4 ror end
until, over and lboro all of 8ueh itom,
it s&11 ham looumulatsd a 8u?tlol~at
rurplw out of uhloh tc my the ?a00 value
or the4csrtlf~oetrr
_' *A8 yet A0 Suit ha8 been bfowht, Or d6WDd
for peymsnt made upon the Csrtiflsets~ but
Ur, O*Kss??r rtlil hold8 it and wemumbly
treats it as a biding .obllgatloieaU intmdr
to beman peymsnt ead ?robsbly sus later OR..
. .
Eonoreblo 0. Pe Lookhex%, ChaSrmn, k&s 4
lAuumlng th, above rertr to k rrteb-
. - site u8 four o
th0 protifiionror
l
tar 8 lto mnl4 4 othsr p?lluable.iew#,
and la the above lroumskeeo8, thlr item l8
to ba trutad by hi8 BO624 es a llablllty qi
tha 30ottf ror the pup088 of detrnainlng .
itl 801WlS7."
rrm 7ou.r lsttar tint the rmtrrnrl
beastit 8OOist @row4 OOntOStS th. rtiidit7 of thr ebotr
4soorlbed and ha8 St?Oo& $O?MSOfi thsnto, qe
hem sarlow doubts es to t& authcrlt7 or thr sooiaty to
lsaus rush 0~rtiri06t0 an4 serlousl~ dmbt thet a ju&gnmt
Ootid br reooYerod &&Afit th. 6OOiSt7 UAdSt ths ieOt8 Stat*&
but it 18 cot a.OsS ia taifiOpiCiOO t0 +lOfi OC thO#S'
Quutloc8 Snd we 40Ta PBS oa nm*
I+Is our o~l~Im, under the raoto otatod, that
uels48 aed until a ria &Qasnt of a oourt 0r oaapetqnt
&rlr4iotlun la rwdomd OA ml4 *artlfloetr,you rhmald net
00n814rr rcld 8eirimcp ns e lieblllt~ of tbo socisty es-
tWtiCC it8 8017ellSy.
Vary truly yOU8
P APPROVED
OPINION
00YYrrrEc