Texas § IN.2551.051 - FORMATION

§ IN.2551.051. FORMATION

FORMATION; GENERAL PURPOSES AND POWERS. (a) A private corporation may be created and licensed under this title for the following purposes: (1) to compile and own or lease, or to acquire and own or lease, records or abstracts of title to real property or interests in real property in this state or other jurisdictions, to insure titles to that real property or interests in that real property, and to indemnify the owners of that real property, or the holders of interests in or liens on that real property, against loss or damage resulting from an encumbrance on or defect in the title to the real property or interests in the real property; (2) in transactions in which title insurance is to be or is being issued, to supervise or approve the signing of legal instruments affecting the interest to be insured, disbursement of money, prorations, delivery of legal instruments, closing of transactions, or issuance of commitments for title insurance specifying the requirements for title insurance and the defects in title necessary to be cured or corrected; and (3) to issue personal property title insurance under Chapter 2751 . (b) A corporation described by Subsection (a) may exercise any of the following powers by including the power in the corporation's charter: (1) to make and sell abstracts of title in any county of this state or another state; (2) to accumulate and lend money and to purchase, sell or deal in notes, bonds, and securities, but without banking privileges; (3) to act as trustee under a lawful trust committed to the corporation by contract or will or by appointment by a court as trustee, receiver, or guardian; and (4) to act as executor or guardian under the terms of a will or as an administrator of a decedent's estate under the appointment of a court. (c) Notwithstanding any other provision of this section, a corporation described by Subsection (a) is not authorized to practice law, as that term is defined by the courts of this state. A corporation described by Subsection (a) is not authorized to prepare a legal instrument described by Subsection (a)(2). Added by Acts 2003, 78th Leg., ch. 1274, Sec. 6, eff. April 1, 2005. Amended by: Acts 2007, 80th Leg., R.S., Ch. 543 (S.B. 1153 ), Sec. 5, eff. September 1, 2007.