Texas Attorney General Opinion: V-997 Page: 3 of 8
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lion. Jesse James, Page 3 (V-997 )
in one issue of a newspaper of general circulation in
Travis County, Texas, a notice of the receipt of such
deposit and the name of the stockholder entitled there-
to, giving his last known address and the amount of the
distributive portion so deposited. The stockholder or
other person entitled to an interest in any distributive
portion deposited in the State Treasury, as herein ro-
vided, shall have the same rights with regat"to to the re-
covery othe same as are providedNblaw for claim
ants of eacheated prdpe ty, except that where a distribu-
tre portion has been reduced to cash, as hereinabove
provided, the rights of the stockholder or other person
entitled to an interest in such distributive portion shall
be limited to the recovery of such moneys so deposited.
If a distributive portion is not deposited in the State
Treasury as herein provided, the president and direc-
tors of the corporation or the managers of its affairs,
or the receiver, as the case may be, having control of
the affairs of the corporation at the time of the disso-
lution shall be jointly and severally liable to the stock-
holder or other person entitled to an interest in a dis-
tributive portion for the amount of such portion not so
deposited."
The significant portion of the foregoing statute is that a
part which provides that the president, directors or managers of
the dissolved corporation " . . shall deposit or transfer such dis-
tributive portion to the State Treasury of the State of Texas and it
shall be deemed to be escheated property." If it was the intentioW
of the Legislature in the use of this phrase to presently effect a
completed escheat of the property to the State without affording due
process of law, we are of the opinion that the statute would be un-
constitutional.
The pertinent provision of the Constitution of this State
dealing with escheats is Section 1, Article XIII, wherein it is pro-
vided that:
" ... the Legislature shall provide a method . .
for giving effect to escheats; . . .'
It is stated in 17 Texas Jurisprudence 73, Escheat, Sec-
tion 3, with reference to the above constitutional provision that:
SThis provision of the constitution does not author -
ihe the legislature to create an escheat--that would be
a taking of property without due process of lawl it sim-
ply directs that provision be made for a method of: ascer-
taining whether or not there has been one. "
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Texas. Attorney-General's Office. Texas Attorney General Opinion: V-997, text, February 4, 1950; (https://texashistory.unt.edu/ark:/67531/metapth265816/m1/3/: accessed July 4, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.