The status of the Woodmen's Circle, a fraternal beneficiary association, which was engaged in doing business in the State of Indiana.

230 INSURANCE-WOODM EN'S CIRCLE. July 2, 1907. Hon. John C. Billheimer, Auditor of State: Dear Sir-In answer to your request for my official opinion as to the status of the Woodmen's Circle, a fraternal beneficiary association which you advise me was engaged in doing business in the state of Indiana at the time of the passage of the act ap- proved March 1, 1899, by the general assembly of the state of Indiana, appearing at page 177 of the Acts of the general as- sembly of the state of Indiana for the year 1899, pertaining to the regulation and incorporation of fraternal beneficiary associations, and other matters, and which continued to operate and do busi- ness in the state of Indiana, and is still doing business in this state without having complied with said act, but is now tender- ing full compliance therewith, as an association doing business at the time of the passage of said act. Section 16 of said act provides, among other things, that if such association shall fail to comply with any of the provisions of said act, the auditor may give notice to the attorney-general who shall commence an action to enjoin it from carrying on any business within this state, or, if found to be insolvent, for the appointment of a receiver to wind up its affairs; that no asso- ciation so enjoined shall have authority to continue business until such report shall be made, or violation of law complained of shall be corrected; nor until costs of such action shall be paid by it, provided the court shall find that such association was in default as charged, and that such association is solvent; where- upon the auditor of state shall reinstate such association; and not until then shall such association be again allowed to do busi- ness within this state. By the provisions of the section last referred to, it will be observed that where such association has failed to comply with the law, upon compliance therewith its right to continue in busi- ness in this state is recognized. It is my opinion that the mere fact that there has been delay in taking steps to exclude such association from doing business in the state would not in any manner interfere with the right of such association to continue business if it complies with the law and a license authorizing it to do business is issued to it. Under the conditions you describe, you could not, in my judg- ment, be compelled to issue to license to such association, but if its default is not due to a wilfull disregard of the law, and there is no other ground of objection to such association doing busi- ness in this state, and it will promptly comply with the law, there is no good reason that I know of why the reports should not be accepted and license issued to it to continue business in this state. CORPORATIONS-USING WORD "TRUST" AS PART OF CORPORATE NAME. July' 2, 1907. Hon. John C. Billheimer, Auditor of State: Dear Sir-I have received your communication of June 26th, asking the following question: "Assuming that a corporation organized prior to March 4. 1893, under the Indiana law of February 7, 1873, con- cerning state banks, used in its original incorporation and still uses the word 'trust' as a portion of its corporate name, and that it conducts a banking business only, does such corporation violate the prohibition contained in the act of the Indiana general assembly, approved February 24, 1899, amending section 18 of the act approved March 4, 1893, concerning trust companies?" The prohibition above referred to is contained in §5015a Burns' Statutes 1901, and reads as follows: "All corporations not organized and transacting busi- ness under said act approved March 4, 1893, and whereto this is supplemental, and all persons or corporations doing the business of bankers, brokers, saving institutions, in- surance corporations, building and loan associations or other corporations engaged in business in this state under any other act than the one aforesaid, are prohibited from using the word 'trust' as a portion of the name or title of said bank, corporation, firm, partnership or association; and any violation of this prohibition committed by any person or corporation after the taking effect of this act, shall subject such party, person, corporation or association chargeable therewith to a penalty of fifty ($50) dollars for each day during which it is committed or repeated; said penalty to be recovered in the name of the state on a suit brought by the attorney-general, whose duty it shall be to enforce the provisions of this section."