Hon. Jesse James Opinion No. O-5820
State Treasurer Re: Construction, of S.B, No. 8 of the
hustin, Texas Regular Session, 48th Legislature, amend-
ing Article 4740, R.C.S., and Incidental
Dear MrO James: questions o
Your request for an opinion on the above subject mat-
ter, i,s as follows:
“According to the General and Special Laws of
Texas, 48th Legislature, Regular Session, 1943, Life
Insurance Companfe s - Deposits of Securities, Chapter
s$$ S,B. NO. 8, Page 206, An Qct to amend Article
Revised Civil. Statutes of 192Fa was passed
which reads, fn part, as follows:
“‘The physical delivery of such securities to the
Board of Insurance Cimmissioners shall be sufficient
without being accompanied by a written transfer of any
lien securing themas
Wince this Department holds, as custodian, securi-
tfes for companies under the supervision of the State
Board of Insurance Commissioners, as well as the State
Bankfng Department) we kindly request your opinion on
the followfng questions:
“1 .D Is the above Act retroactive covering a.11 de-
posits made prior %o th.is amendment, or does it app1.y
only to deposits made after the effective date of this
law?
“2 0 Has there been a simi.lar amendment enacted
for Senate Bi.11 No. 165 removing the requirement of
transfers of vendor’s l,ien or mortgage notes on depos-
its made by companies under the supervi,slon of the State
Bmkfng Department? If so9 what is the effective date
of said amendment?
“3 Q Under any condition fn which transfer of 11en
is required by law, does the endorsement written on the
margin of vendor’s lien or mortgage notes ‘without re-
course’ and signed by the company constitute a legal
transfer of lien?”
Hon. Jesse James, page 2 (O-5820)
Article 4740 of the Revised Civil Statutes of 1925
as amended.by S.B. No. 8 of the 48th Legislature at its Regdar
Session, provides:
“Any life insurance company now or which may here-
after be incor:2orated under the laws of this state may
;Is-i;osit with the Board of Insurance Commissioners for
t!;e common bene_“i.t of all the holders of its policies
an annuity bonds, securities of the kinds in which, by
the laws of this state, it is permitted to invest or
loan its ca;sitil, surplus, and/or reserves, equa.1 to
tlr 1c:al reserve on all its outstanding policfss in
force e which securities shall be held by said 9oard of
Insurance Comni.ssioners in trust for the purpl:!se and
objects herein specified. The physical delivery of
such securities to the Board of Insurance Commission-
ers shal,l be sufficient without being accompanied by a
t:ritten transfer of any lien securing them. Any such
company may deposit lawful money of the United States
in lieu of the securities above referred to, or any
portion thereof, and may also for the purposes of
such deposit, convey to said l!oard of Insurance Commis-
sioners in trust the real estate in which any portion
of its said reserve may be lawfully invested. In such
case, the Board of Insurance Commissioners shall hold
the title thereto in trust until other securities in
lieu thereof shall be deposited with it, whereupon it
shall reconvey the same to such company. Said Board
of Insurance Commissioners may cause any such securi-
ties or real estate to be appraised and valued prior
.to their being deposited with, or conveyed to, it 9.n
trust as aforesaid, the rea.sonable expense of such ap-
>raisement or val,uation to be paid by the company. Un-
der the ;:rovi,s-Ins of th.is Article, registered as well
as unregistered United States Government securities may
be deposited.”
It is the general rule that legislative acts speak
proL;)2”tivel.y ind not retrospectively, unless such retrospective
featuae is c!~::.rly maniSest from the language of the Bill. We
find nothing ii1 th;? above-quoted amendment that would take the
case out of the ordinary rule. So that, your first question is
answered that the Act is not retroactive so as to cover all depo-
sits made prior to the effective date of the amendment, but that
it applies on.1.y to deposits made after the effective date of the
law.
We assume that your reference to S.B. No. 165 in your
second question is to S.B. No. 165, Chapter 165 of the 42d Legis-
lature at its regular session in 1931. (Rev.Civ.Stat-Art. 1524a,
Vernon’s Codification) o
Hon. Jesse James, page 3 (O-5820)
This Act does not purport to require transfers (actu-
ally) of the liens securing debts or obligations--sec,ur?.ties--
deposited with any corporate trustee in the manner they-in
pointed out o
There has been no ‘amendment of the Act in thi,s respect.
In this connection, however, we will say thcst 1.t may
have been the departmental practice of the Banking Commissioner
in approving deposits \Untitled Texas Attorney General Opinion
Combined Opinion