Honorable "William D. Gordon
AGO 39
Opinion No. 39
Pennsylvania Attorney General Opinions
Opinions Of The Attorney General
February 8, 1932
Department of Banking-Supervision over title insurance companies not receiving deposits.
Where a title insurance company incorporated under the Art of . April 29 1874 P. L. 73, does not have the power to receive and does not receive deposits, whether or not it has formally surrendered such power given to it by the Act of May 9 1889, P. L. 159, as amended, the Secretary of Banking" does not have supervision over it and is not required to demand called reports of such company nor to examine it.
Department of Justice,
Harrisburg, Pa.,
February 8, 1932.
Honorable "William D. Gordon,
Secretary of Banking, Harrisburg, Pennsylvania.
Sir: You have requested an opinion on your duty to examine and supervise title insurance companies incorporated under the General Corporation Act of 1874, which do not accept deposits or engage in trust activities.
"We understand that there are functioning throughout the Commonwealth a number of corporations created under and by virtue of that portion of Section 2 of the Act of April 24, 1874, P. L. 73, which is designated "Corporations for Profit—Second Class," and which, in subparagraph XIX, provides for the incorporation of companies for the following purpose:
"The insurance of owners of real estate, mortgagees, and others interested in real estate, from loss by reason of defective titles, liens and encumbrances."
Many corporations created under this clause enjoy a variety of powers and privileges given them by the Act of May 9, 1889, P. L. 159, the Act of June 1, 1907, P. L. 382, No. 275, and the Act of May 9, 1923, P. L. 173. Such corporations, popularly known as "trust companies, " do a banking and fiduciary business, receiving deposits, making loans, and handling estates. They file with you from time to time called reports and are generally under your supervision.
Other corporations created under the same law have confined themselves strictly to a title insurance business. Some have surrendered their powers to engage in a banking and a fiduciary business by virtue of a formal court decree; others have either never exercised such powers or have ceased to do so and have abandoned them. In any event, such companies, whether or not they still have the power to do so...
