Untitled Texas Attorney General Opinion ( 1940 )

OFFICE OF THE ATTORNEY GENERAL OF TEXAS AUSTIN trlct conrt. 27, ls40, a- for aA0 opixdcn tho dove srptionea mbfatit mxttw, wt08rUlpsr 0 failure of tao a litm upn hi.6 a#wmant , ln orrsot # dbor%inater the lam of the bank to the Lien armted to secure the fedoral agency insofar 80 tha bank’s lijrais 8 lian 011 the lnc1ta%r an qgremt on the ii- Coxd8doner not to farmrinthollmofh%stool8ad8toak duringtheeodngcropyJlu. Th+Cam- zdssloa3r is oi the opisma th8t it ir to the bestlatcuostoi thobaak ta aaouto the agroemaxlt. '(2) ?ha baa& bold8 a llm n stoekot *ralne1e8s than tw asmunt or its a&at, nrd the ommr of the stock, tind- ing a prcohasorsho Lowi11lngt0 m 8 tnir pie0 ror the stock, popose* to ml1 th38tQck;mb~ y the pwweds of t&e sala to his debP , lorting the balmae of t& MobtodPeas still owl@ the bfusk. It zill b3 necessary for the Ccudsslomr, %ithW 0xpoa61~ or by iaplit%Btiotl, to ro- lwse tha lien of thebankupon the stock sold.. O(3) The saao eituation 38 that a&ailed la PQM;TO~ (2) abow, quite ofton arises sit& ref3roneo to real obtote loeoo 3'33rail-01s or 0 prt Of the lard GocUr- ing the Mabtoclr#Po is sold cn3 the ysooml.s aj@led oa the debt, the ComAsslaner Being requimd to axwute 0 prtlal or full re- lease of t&S lien. '(4) B&ore the clo&.ng of the baaitaqzim3s alieaupnperscmaltf uxbr ,c pledged contra& coatpinzzrg a PO+- -.wof Sal0 allthorixbg thobaaktooOll tha peruaoslty at public or ipri~ate SC&~. ThO Coxiiaosion3rrizYlsa person who is willing to bti the rowmnablo value o? tha poperty at the Bale clnddGcidea to persilt the Fojerty to bo strwk d'S to tm tbiml party arxlersuch bid. O(s) Tlaebank holds P lien apm Live etock a~3 the dabtor, tithout axq epoeifio ~setiaent that the stock is to bo taken la ~ollat.%on of th debt alqly turns the stock in to the coudrirfonor uml indicat3s that be is xm*1~~&0& In tha truleaotlon. anoppetunltyto Eelltbb rtoetforo reason8blsralne ant decide8to Bakethe sale. s(O) Tho dabtor, as in vsgra# (8) abow, turzm the stock i8 to the M butspeclxiasll;l8psesthstth@Csmlsr iona? is to Ml1 tho stockend rpply the poceads to the debt,leatinE; thennprid bskuiae still osiag. ‘~6ZlStSCtiOll6 SUch 66 6bofO OUtl%lld usurlw inr0i~0 ~popsrty or 86ui YO~UO, and If the Cousdssioner 3.6 rrqulrad in ev$ry aase to rp lo to the court or tbo jl.l&gs far autho4 ty to mrry out the m posals, a consldersblo portion of tEe ta1uo Gf tizap-opert7 invOlTetlx4.11be uood in oaurt costs* It i6 t&S desire of this Dc+prrrtwnt to exaraise every jre- caution lal;allymmesssq, but at the 6;iE8 t.iW, not t0 USS1eS61Y VMte th0 M- sots in its Umds by sm unnoowsafy court costs. *In tLe~lFC;btof IJioakavc, I respeot- fully suhalltthe follosiry qnestioar ml8 it ncae*a8ay, under tie lav, for the Co~dcwr tcropol;r' to tha Dis- trict court for uuthGrit7 to cs.rT7 but iug or all Gr Lb0 prSpcsal6 as outlined la rsaragraphsx~~&srerl (1) to (5) abow@ A fw words Tith Z’espOOt to th3 notut’s ati 8SIEWal powrs of the ii* Comilssi~~!~ rfll not bo emis,. 38 th a c o ntr a r y, sudb l sktewnt will fumisb the key to the jmb10ss,ima others Of a skilpr naturrt,subr.dttsdin your -P-7. The StrteBaakingCossids(LIomr is a State officer 6xidsb7 1s~ su~lmtSm&at ad tnst@MtOr ef the State's bankIng system of Texas. (WV. Cit. Stat., ArtAcls 347) iiais clotksd ritb the pcmr of tisitrtioa of State banklag lnstltutloM, 81th authorit to C&OS8 orp 1lutitut10n riolot- ing t&o lama ot Lt10 State, SS S@t tSPt& in the St8tUt36. Be iebr Los mda the liquidator of olosedbanks cOsdx& lat.0his 2c haml8, (8eY. CiY. Itam., Art. 3tl)) 8xaept ln tlloae a88eE uilcreheroluntaril7rsCerstbe satter to theAtt~Cea- *al for julsdal 11puidrt1on.(BOY. CiY. stats ., Art. 370). LB t&O WttW Of liQUid8ttrgSUOb 8 blUik.thO C0mtAeel0uw is euthorited to eo11est PINS, claims, end debto dua to su6h inSOlrS8t bank8 aXadpsriSX% such rats as are nee?nsary to oormerro its 8eHts and baslwms, ud to 1iqdlbt.e the aftdrs of rmab hmlmnt b-.' (Rsr.Civ. 8Lats.,Art. 463). It will be borw In odrd flut the autharit~ of theBuWngComzlseionerbe10~ tehiub~tirtoo of his ~podtion a6 a state 05?16w axl net w tirtus OS al?y aoFt of appointmnt~ ug ooptf as aFeeelv* 0rU@dater, (Lain OIuuary Co838 of l.ns01relseypoowdlngs. TheCo~Joaaracts uponhis emninitirtiraaod irrbependentl7 of tbe crders of tbe court, exoept onl7 In thoso illSt&8lCSSUhb-ro t&s St8tUt3 ha6 6ps0iii6Sd1j WW@.P0d the approval cf' t&e District Court of the county wherein the insolvent bank i8 loeatod. Zhis 118a5tation upon his other- sisa coupleta power, %nsofar as ft is jmrtlmnt to 7am in- qu&rbs, is found la Artlole484 of th7 statutes,as follov~~ sUgon ths ordsr oi!the Dlstriat court of the oeuut~la which aroh bsnkls loeated,it in session of the jadgo thereof, if %a rraatL, the Corrndsdonw ray sell or eom- pound all bad or doubtful debt6, 6a3d a67 sell real or psrsowl pco- pert7 OS such banka on such tsror as the aourt sbsll direot, RX@ un- derlike OllderOt Said OOUTt,or the jud&e thereof, bo aq sell or ooupouml bd or doubtful stMk- holders' tb6MsswntS fbndssll stockholders* ussasswnts levied ageinatstookbolders of sxacbben% OPsuchtermsest.beCem%sh8l1 dlroet. a0 SOOb OPdOr 6htil b0 enterea or sale sad0 vltheut8o- ties 0x3 t~eardng.~ A6 8 liquidator of t&bMk, the COnr JisdOnW is l tFustee, t&e dapofitors, other erediters end the stooMxoldere ($8 8 ssar;o) t&e ‘uoasliCiSPt66 , ylJhsncohs my do every- thing wcesaaa-y to ooaearve the asaets of rho bzmk. (536 Zsll~~ bmkka 8nd i&&in&, Vol. Vt * 6311). ?lot w k this tLw general rule, but it is &he statutoq rule ia ‘KQxu, ILS sho%fnb7 &tic10 483 oi the StStUtQ6 ObWe qUOt- od. Of cowe, say sot uf his In thr aonsarvatioa of t&a au&s in his lmrub is subjeor to tha expcou rememtion of the sLatuto contalnsd ln Artfcle 464 pit& reaps& te tb~ a110 of assets, the c-s oc aoxqs-odse of dabts tiethe bank sxi t&b like. a0 c~~OQSr’6 8OtS pith X%MqeOt t0 tbf3 CoI)- somrtion OS Lhe oreots$n hi.6 should be thOs@ which ha!XlS a sauna axl fair osslci%l useretio?J surgests to him as fha &roper tXl6h.XWS ona oifiai%l Courmd. ms dutiee Era those that aoulS ba extwcis~ b7 80 orddmrily tubIrf3twm- alL’iLr C;UltloUS,oo@blo poreon oCoupg* his offIcIa1 ml- tion. such oipio2ol wts cl hi6 are end em wt. i’i.zaal subject tc appeal or rwiw by amy other tHb#lklOrWtlFt sbatso~?ar It- io only t&a abuse of bls pouers that muid l be macLad a-w by tcoourt of eqnit7. Fitb tieso ~-x&era1but Im¶Is~teble pInelplss in dlxl, vo %nwer your inquirlw in t.hooraer In uhhh you hays propcunied the&~ 00 followat (1) ma aubowtlaa egreewat, rruob:aa mm- Uonod b7 7m, clearly, if tb3 iaOtS jl?stw i.t,is One rbich th3 ii- cowdasiowr in t&o 0xaruiso oi) his an- cLCsputJC.right and duty of conseru~tlm oi the auetm in IlisIisldS*husthopowrtowke. lfth~aaUlouab7 another to the tarrisw’ SOP the wr*oSS of t#%bl~ hflp to mke a crop, S6 rawmabl~ nooassarj cx=holpfkl to the Ced6&owr io malising upoa bi6 cmn clrrir, the sribro- sat&on irtSwor of the ow tnklng such nm loan is ea at of conservation suthorzEed b7 16s. uad not Is eq SB~SO a aah of an assot of tba bank, WC Is it o e01p1 protdse or co-g of ua iadobtodness ,due the bank. (2) There Is a ditfsmnue batweoa 8 debt and a llea respring the ps7wnt of sueb debt. Sacb 1s polerty, OS course, but the lien baa no separrrteexistewe &de-- Ont of the debt, a& o8mnot be se~@&d tbwe?roe am3 8old as EII asset wltbln Itself. Z?m ease pxt by you in Us qu~ticn is a mare oouvoaticxml mthtibf qrewcnt of t.ilc&artAeo cowollzQa to rcm?o1ose t%Aa lfon e apply thbo procrmds al tLs 6S10 to t&s debt. TM8 is in 1Qgal aifsat enfamemmt of the lien for the purpose of colleat- . - x lx.& the d&t -- a thing the Coxmirrsianaris camrmndsd by 1~8 tC do. aaid aboro ritb r3spact __ - -to qu3st1cn 82' 1s 3150 rpy1rcama to your qu3st1on -8. .i3+ fact rhat th.3 mcurlty consists of lcuxlrather than of p.8rscnalgxoperty rzcnkes no dl.ftsenw in ulo losttar. (4) In a casd rhora tha bank asset is a noto socurs& by a pl%lgo of collataral tto situatien is no difforont tram that disenssad in quostlono .r and 'P abwe~ The pledged lisn niy bo fomcloaed by t&s Cop- I;36~ionarIn scc0rdm2.3 rith,.theterm or the plodgo contract zd *Aa wthad on~z~ast-d a you my, of course. bo POllarDd* This is collacticn and not wls or mqmmd- ing 12 anydoo. (5) trh83-0the Cowdssioner pase3ably take8 pao~~?&co of c#rtgiged pwprty, as he ZXL~ 53 authorimd to Lo by thz tams of the instrumnt, or v?lcr> ths dabtor mrQ surrmdorg tha cxwtgagod property to tb3 Comdas- ionor umier tho mortg*:6, vlthout any agroamnt Jhat3ver as t-0tli~z&h&l of foraolosure IUXIapgllcdion of tbo proc2#28, the Comchsionor is aut3orlzod to call and ap- ply ti.12~~roe.mds to the debts, but h3 should follow the tarca of the oprtgago as to tha zi8thml of foreclosure; tiiat is, he should re60rt to a comt formlosure xml3er zotl;ar cc sugary z&ho5 Is authorisad by that instru- rant . (6) Hera the debtor, howcwr, turns the mrt- gag& projmty owr tc the Codssicner ax& qp3ee that the Conlssicnor is to sell th3 sm.3 an2 amly th9 pro- C3OCr CL* tta Labat, there is tk3 ccnmntianal cz agr3ti fomclo~s, :.::I;: t;;3 Colcisslonar cay pwco:~ according- ly sithczt resort ccit&3 court for a fufUci~.lforxlosura. Go Gist, it is tfio o;:inicn cf this dqmrtnmt tbt nc court crder is mcessary, but tie Correisr~onw t;ry g~0c33q in suob cases as you etate as ber~lnabcwe -c+btod. v-7 t-Y P--J