The Laws of Texas, 1921 [Volume 21] Page: 14 of 1,670
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6 GENERAL LAWS.
parties interested, and to the terms and provisions of this Act; and,
thereupon, such deposit shall remain in trust under and subject to
the terms and provisions of this Act; and, whenever such deposit
has been made with a trustee by order of any court or other authority,
it shall be the duty of the court or other authority, by order or otherwise,
to direct such transfer to said Treasurer; and, in case such
deposit is less than the sum of fifty thousand dollars, then said
company must deposit with said Treasurer securities sufficient to
increase said deposit to said sum of fifty thousand dollars as required
by this chapter; provided, domestic corporations chartered
for the purpose of doing business under this Chapter within this
State alone shall be required to deposit securities as hereinbefore
provided for to the amount of twenty-five thousand dollars.
SEC. 2. Article 4935, Chapter 13, Title 71 of the Revised Civil
Statute's of Texas, 1911, shall hereafter read as follows:
Article 4935. Defaulting Company; Claims Paid, How.-Should
any company of the character named or enumerated in this chapter
fail or refuse to pay any loss by it wheresoever incurred within
sixty days after its liability thereupon shall have been finally determined
by the judgment of any court of competent jurisdiction
wheresoever rendered, upon satisfactory proof, to the treasurer of
this State, of such liability and of it's non-payment, said treasurer
shall, out of the deposits so made with him, as by this chapter provided,
pay said loss and, when he shall have done so, he shall at
once certify to the Commissioner of Insurance and Banking the
fact of such default on the part of said company; whereupon said
Commissioner shall forthwith cancel and annul the certificate of
authority of such company to do business in this State; provided,
that such payment shall not operate to release the company from
payment of any balance which it still may owe after such payment
by the Treasurer of this State has been made.
SEC. 3. The fact that the Supreme Court of Texas has recently
decided that the deposits required by and mentioned in said Articles
4930 and 4935 are for the benefit of the holders of obligations incurred
in the State of Texas only, and the resulting disadvantage
and injustice to Texas Fidelity, Guaranty and Insurance Companies
creates an imperative public necessity and an emergency, which
requires that the constitutional rule providing that bills, shall be
read on three separate days in each house be suspended, and said
rule lis hereby suspended, and this Act shall take effect and be in
force from and after its passage, and it is so enacted.
[NoTE.-The enrolled bill shows that the foregoing Act passed the
House, no vote given; and passed the Senate, no vote given.]
Approved August 9, 1921.
Effective November 15, 1921.
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Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1921 [Volume 21], book, 1921; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth14933/m1/14/: accessed May 23, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .