EXHIBIT 3.2


                                     BY-LAWS
                                       OF
                    STEWART INFORMATION SERVICES CORPORATION

                                    ARTICLE I
                                     OFFICES

         SECTION  1.1.   Registered   office.   The  registered  office  of  the
corporation in the State of Delaware shall be in the City of Wilmington,  County
of New Castle,  and the name of its  registered  agent shall be The  Corporation
Trust Company.
         SECTION 1.2. Other offices.  The  corporation  may also have offices at
such other  places both within and without the State of Delaware as the Board of
Directors may from time to time determine or the business of the corporation may
require.

                                   ARTICLE II
                            MEETINGS OF STOCKHOLDERS

         SECTION 2.1.  Place of Meeting.  All meetings of  stockholders  for the
election of directors shall be held at such place,  either within or without the
State of  Delaware,  as shall be  designated  from  time to time by the Board of
Directors and stated in the notice of the meeting.
         SECTION 2.2.  Annual Meeting. The annual meeting of      stockholders 
shall be held at such date and time as shall be designated from time to time by
the Board of Directors and stated in the notice of the meeting.
         SECTION 2.3. Voting List. The officer who has charge of stock ledger of
the  corporation  shall prepare and make, at least ten days before every meeting
of  stockholders,  a complete list of the  stockholders  entitled to vote at the
meeting,  arranged  in  alphabetical  order,  and  showing  the  address of each
stockholder and the number of shares registered in the name of each stockholder.
Such list shall be open to the examination of any  stockholder,  for any purpose
germane to the meeting, during ordinary business hours, for a period of at least
ten days  prior to the  meeting,  either at a place  within  the city  where the
meeting is to be held,  which place shall be specified in the notice,  or if not
so specified,  at the place where the meeting is to be held. The list shall also
be produced and kept at the time and place of the meeting  during the whole time
thereof, and may be inspected by any stockholder who is present.
         SECTION 2.4. Special Meeting. Special meetings of the stockholders, for
any  purpose  or  purposes,  unless  otherwise  prescribed  by statute or by the
Certificate of  Incorporation,  may be called by the Chairman of the Board or by
the  President or by the Board of Directors or by written order of a majority of
the  directors  and shall be called by the  President  or the  Secretary  at the
request  in writing of  stockholders  owning a majority  in amount of the entire
capital stock of the  corporation  issued and  outstanding and entitled to vote.
Such request  shall state the purpose of the proposed  meeting.  The Chairman of
the Board or the  President  or  directors so calling,  or the  stockholders  so
requesting,  any such meeting shall fix the time and any place, either within or
without the State of Delaware, as the place for holding such meeting.
         SECTION 2.5. Notice of Meeting.  Written notice of the annual, and each
special meeting of stockholders, stating the time, place and purpose or purposes
thereof,  shall be given to each stockholder  entitled to vote thereat, not less
than ten nor more than 60 days before the meeting.
         SECTION 2.6. Quorum.  The holders of a majority of the stock issued and
outstanding  and entitled to vote thereat,  present in person or  represented by
proxy,  shall  constitute  a  quorum  at any  meeting  of  stockholders  for the
transaction  of business  except at each  election of directors and as otherwise
provided by statute or by the Certificate of Incorporation.  At each meeting for
the election of directors  the holders of a majority of the Common Stock and the
holders of a majority of the Class B Common  Stock,  issued and  outstanding  of
each such class, and entitled to vote thereat,  present in person or represented
by proxy shall constitute a quorum.  Notwithstanding the other provisions of the
Certificate of Incorporation or these by-laws,  the holders of a majority of the
shares  of  capital  stock  entitled  to vote  thereat,  present  in  person  or
represented  by proxy,  whether or not a quorum is present,  shall have power to
adjourn the meeting from time to time, without notice other than announcement at
the meeting, until a quorum shall be present or represented.  If the adjournment
is for more than 30 days, or if after the adjournment a new record date is fixed
for the adjourned  meeting,  a notice of the adjourned meeting shall be given to
each  stockholder of record  entitled to vote at the meeting.  At such adjourned
meeting at which a quorum  shall be present or  represented  any business may be
transacted  which  might  have been  transacted  at the  meeting  as  originally
notified.
         SECTION 2.7.  Voting.
         (a) Unless express provision of applicable  statute, of the Certificate
of  Incorporation  or of these by-laws  shall  provide to the contrary,  at each
meeting of stockholders each holder of capital stock of the Corporation shall be
entitled to cast one vote for each share of capital  stock  registered in his or
its name on the books of the Corporation on the record date for determination of
stockholders  entitled to notice of, and to vote at, such meeting on each matter


properly submitted to stockholders at each meeting. If any stockholder  entitled
to vote at any meeting  shall be present at such  meeting  and such  stockholder
shall  abstain,  whether in person or by proxy,  from  casting the vote or votes
which he or it is entitled to cast at such meeting,  such  abstention  shall not
affect the  determination  of the presence of a quorum at such meeting.  For all
purposes of these  by-laws,  an  abstention  from voting on any matter  properly
submitted to  stockholders  at a meeting shall not be considered a vote cast for
or against such matter.
         (b) Each stockholder having the right to vote shall be entitled to vote
in person or by proxy  appointed  by an  instrument  in  writing  subscribed  by
stockholder,  bearing a date not more than three years  prior to voting,  unless
such  instrument  provides for a longer period,  and filed with the Secretary of
the Corporation before, or at the time of, the meeting. If such instrument shall
designate two or more persons to act as proxies,  unless such  instrument  shall
provide to the  contrary,  a majority of such persons  present at any meeting at
which their powers  thereunder  are to be exercised  shall have and may exercise
all of the powers of voting or giving consents thereby conferred, or if only one
be present, then such powers may be exercised by that one, or if any even number
attend  and a  majority  do not agree on any  particular  issue,  each  proxy so
attending  shall be  entitled  to  exercise  such  powers in respect to the same
portion of the shares as he is of the proxies representing such shares.
         (c) An instrument in writing subscribed by stockholder and appointing a
proxy may confer upon such proxy  discretionary power to vote on any matter that
may come before an annual meeting of the stockholders of the corporation unless,
with respect to a particular matter, (i) the corporation  receives, by certified
mail, return receipt requested, addressed to the corporation's Secretary, notice
not later than the 15th day of February next  preceding the annual  meeting that
the matter will be  presented  at the annual  meeting  and (ii) the  corporation
fails to include in its proxy  statement  for the annual  meeting  advice on the
nature of the matter and how the corporation  intends to exercise its discretion
to vote on the matter.
         (d) When a quorum is present at any meeting of stockholders, a majority
of the shares  voted in person or by proxy  shall  decide any  question  brought
before such meeting, unless the question is one upon which, by express provision
of applicable  statute, of the Certificate of Incorporation or of these by-laws,
a different vote is required,  in which case such express provision shall govern
and control the decision of such question.
         (e) When a quorum is present at any  meeting of  stockholders  at which
the Board of  Directors  is to be  elected,  the  stockholders  shall elect such
directors by a plurality  of the shares  voted in person or by proxy.  All votes
for  election  of  directors  that are cast in person  shall be cast by  written
ballot.
         SECTION 2.8. Consent of Stockholders. Whenever the vote of stockholders
at a meeting  thereof is required or permitted to be taken for or in  connection
with any corporate action by any provision of the statutes, the meeting and vote
of  stockholders  may be dispensed with if all the  stockholders  who would have
been entitled to vote upon the action if such meeting were held shall consent in
writing  to  such  corporate  action  being  taken;  or if  the  Certificate  of
Incorporation  authorizes the action to be taken with the written consent of the
holders of less than all the stock who would have been entitled to vote upon the
action if a meeting were held, then on the written  consent of the  stockholders
having not less than such percentage of the number of votes as may be authorized
in the Certificate of Incorporation;  provided that in no case shall the written
consent be by the holders of stock  having less than the minimum  percentage  of
the vote  required by statute for the proposed  corporate  action,  and provided
that prompt notice must be given to all  stockholders of the taking of corporate
action without a meeting and by less than unanimous consent.
         SECTION 2.9. Voting of Stock of Certain Holders. Shares standing in the
name of another corporation,  domestic or foreign, may be voted by such officer,
agent or proxy as the  by-laws  of such  corporation  may  prescribe,  or in the
absence of such  provision,  as the Board of Directors of such  corporation  may
determine.  Shares standing in the name of a deceased person may be voted by the
executor or administrator of such deceased person, either in person or by proxy.
Shares  standing in the name of a guardian,  conservator or trustee may be voted
by such fiduciary,  either in person or by proxy, but no such fiduciary shall be
entitled to vote shares held in such  fiduciary  capacity  without a transfer of
such shares into the name of such  fiduciary.  Shares  standing in the name of a
receiver may be voted by such receiver.  A stockholder  whose shares are pledged
shall be entitled to vote such shares,  unless in the transfer by the pledgor on
the books of the  corporation,  he has  expressly  empowered the pledgee to vote
thereon,  in which case only the pledgee,  or his proxy, may represent the stock
and vote thereon.
         SECTION 2.10.  Treasury Stock. The corporation shall not vote, directly
or indirectly, shares of its own stock owned by it; and such shares shall not be
counted in determining the total number of outstanding shares.
         SECTION  2.11.  Fixing  Record Date.  The Board of Directors may fix in
advance a date,  not  exceeding  60 days  preceding  the date of any  meeting of
stockholders,  or the date for payment of any dividend or  distribution,  or the
date for the allotment of rights,  or the date when any change, or conversion or
exchange of capital  stock shall go into effect,  or a date in  connection  with
obtaining a consent,  as a record date for the determination of the stockholders
entitled  to notice  of, and to vote at, any such  meeting  and any  adjournment
thereof, or entitled to receive payment of any such dividend or distribution, or
to receive any such allotment of rights, or to exercise the rights in respect of
any such  change,  conversion  or  exchange  of capital  stock,  or to give such
consent,  and in such case such stockholders and only such stockholders as shall
be  stockholders of record on the date so fixed shall be entitled to such notice
of, and to vote at, any such meeting and any adjournment  thereof, or to receive
payment of such  dividend  or  distribution,  or to receive  such  allotment  of


rights, or to exercise such rights, or to give such consent, as the case may be,
notwithstanding  any transfer of any stock on the books of the corporation after
any such record date fixed as aforesaid.

                                   ARTICLE III
                               BOARD OF DIRECTORS

         SECTION 3.1. Powers.  The business and affairs of the corporation shall
be managed by its Board of Directors,  which may exercise all such powers of the
corporation  and do all such  lawful acts and things as are not by statute or by
the Certificate of  Incorporation or by these by-laws directed or required to be
exercised or done by the stockholders.
         SECTION 3.2.  Number,  Election and Term. The number of directors which
shall  constitute the whole Board shall be NINE.  Unless such number if fixed by
express provision of the statutes or the Certificate of Incorporation,  in which
case such express  provision  shall govern and control,  the number of directors
shall from time to time be fixed and  determined  by the  directors and shall be
set forth in the notice of any meeting of  stockholders  held for the purpose of
electing  directors.  The  directors  shall be elected at the annual  meeting of
stockholders, except as provided in Section 3.3, and each director elected shall
hold office until his successor  shall be elected and shall  qualify.  Directors
need not be residents of Delaware or stockholders of the corporation.
         SECTION 3.3. Vacancies,  Additional  Directors and Removal From Office.
If any vacancy  occurs in the members of the Board of  Directors  elected by the
holders   of   Common   stock   caused  by   death,   resignation,   retirement,
disqualification or removal from office of any such director,  or otherwise,  or
if any new  directorship to be elected by the holders of Common stock is created
by an  increase  in the  authorized  number  of  directors,  a  majority  of the
directors  then in office  elected by the holders of Common  stock,  though less
than a quorum, or a sole remaining such director, may choose a successor or fill
the newly created directorship; and a director so chosen shall hold office until
the next annual election and until his successor shall be duly elected and shall
qualify,  unless sooner  displaced.  If any vacancy occurs in the members of the
Board of  Directors  elected by the  holders of Class B Common  stock  caused by
death, resignation,  retirement,  disqualification or removal from office of any
such director,  or otherwise,  or if any new  directorship  to be elected by the
holders  of Class B Common  stock is created by an  increase  in the  authorized
number of directors,  a majority of the directors  then in office elected by the
holders of Class B Common stock,  though less than a quorum, or a sole remaining
such  director,  may choose a successor or fill the newly created  directorship;
and a director so chosen  shall hold office  until the next annual  election and
until his  successor  shall be duly  elected and shall  qualify,  unless  sooner
displaced.  A director may be removed either for or without cause at any special
meeting of  stockholders  duly called and held for such purpose except that only
the stockholders entitled to vote for any such director may vote for the removal
of such director.
         SECTION  3.4.  Regular  Meeting.  A  regular  meeting  of the  Board of
Directors shall be held each year, without other notice than this by-law, at the
place of, and immediately  following,  the annual meeting of  stockholders;  and
other  regular  meetings of the Board of Directors  shall be held each year,  at
such time and place as the Board of Directors may provide, by resolution, either
within  or  without  the  State of  Delaware,  without  other  notice  than such
resolution.
         SECTION  3.5.  Special  Meeting.  A  special  meeting  of the  Board of
Directors  may be called by the  Chairman of the Board or by the  President  and
shall be called by the  Secretary on the written  request of any two  directors.
The Chairman or President so calling,  or the directors so requesting,  any such
meeting shall fix the time and any place,  either within or without the State of
Delaware, as the place for holding such meeting.
         SECTION  3.6.  Notice of  Special  Meeting.  Written  notice of special
meetings of the Board of Directors  shall be given to each  director at least 48
hours prior to the time of such meeting;  provided  however,  in instances where
notice of such meeting is given orally,  by telephone or telegraph,  such notice
need be given only 24 hours prior to such meeting. Any director may waive notice
of any meeting.  The attendance of a director at any meeting shall  constitute a
waiver of notice of such meeting for the purpose of objecting to the transaction
of any business because the meeting is not lawfully called or convened.  Neither
the business to be transacted at, nor the purpose of, any special meeting of the
Board of  Directors  need be  specified  in  notice  or waiver of notice of such
meeting,  except that notice  shall be given of any  proposed  amendment  to the
by-laws  if it is to be adopted at any  special  meeting or with  respect to any
other matter where notice is required by statute.
         SECTION 3.7.  Quorum and Vote Required.  Six of the nine members of the
Board of Directors shall  constitute a quorum for the transaction of business at
any meeting of the Board of Directors, and the act of six of the directors shall
be the act of the Board of  Directors,  except as may be otherwise  specifically
provided by statute, by the Certificate of Incorporation or by these by-laws. If
a quorum  shall not be present at any  meeting  of the Board of  Directors,  the
directors  present  thereat may adjourn the meeting  from time to time,  without
notice other than announcement at the meeting, until a quorum shall be present.
         SECTION 3.8. Action Without Meeting. Unless otherwise restricted by the
Certificate of Incorporation or these by-laws,  any action required or permitted
to be taken  at any  meeting  of the  Board of  Directors,  or of any  committee
thereof  as  provided  in Article IV of these  by-laws,  may be taken  without a
meeting,  if a written  consent thereto is signed by all members of the Board or
of such  committee,  as the case may be, and such written  consent is filed with
the minutes of proceedings of the Board or committee.
         SECTION 3.9. Compensation. Directors, as such, shall not be entitled to
any stated salary for their  services  unless voted by the  stockholders  or the
Board of Directors; but by resolution of the Board of Directors, a fixed sum and


expenses of attendance, if any, may be allowed for attendance at each regular or
special  meeting of the Board of  Directors  or any  meeting of a  committee  of
directors.  No  provision  of these  by-laws  shall be construed to preclude any
director  from  serving the  corporation  in any other  capacity  and  receiving
compensation therefor.
         SECTION  3.10.  Nomination  of  Directors  to be  Elected by Holders of
Common Stock.  Only persons who are  nominated in accordance  with the following
procedures  are  eligible for election as directors by the holders of the Common
Stock of the corporation.  Nominations of persons for election by the holders of
Common  Stock to the  Board of  Directors  of the  corporation  may be made at a
meeting  of  stockholders  provided  such  nominations  are  made  by or at  the
direction of the Board of Directors  or by a nominating  committee  appointed by
the Board of Directors  or a person  appointed by the Board of Directors to make
nominations.  Nominations  may also be made by any holder of Common Stock of the
corporation  entitled to vote for the  election of  directors at the meeting who
complies with the notice procedures set forth in this section.  Nominations,  if
made by a  stockholder  of the  corporation,  shall be made  pursuant  to timely
notice in writing addressed to the secretary of the corporation. To be timely, a
stockholder's  notice  shall be  delivered  to or  mailed  and  received  at the
principal  executive  offices of the  corporation not later than the 15th day of
February next preceding the annual meeting of stockholders.
         SECTION 3.11. Advisory Directors. The Board of Directors may elect from
one  (1) to  nine  (9) (as it may  decide)  Advisory  Members  of the  Board  of
Directors  who may meet with the Board of  Directors  at such  Board  Meeting to
which  they are  invited  by the  Chairman  of the Board,  or the  President  or
Executive  Vice  President  (it being  realized  that there may be meetings  not
deemed  important  enough to warrant time and travel expense of all or a part of
the  Advisory  Members),  and give the Board of  Directors  the benefit of their
advice  and  counsel.  The  Advisory  Members of the Board of  Directors  may be
elected  at any  regular  or  special  meeting  of the Board of  Directors.  The
Advisory  Members  of the  Board of  Directors  shall  receive  the same fee for
attending  a meeting  that a Director  receives  and shall be paid their  travel
expenses,  if any, incurred in attending meetings of the Board of Directors.  No
such payment  shall  preclude any Director from serving the  corporation  in any
other capacity and receiving compensation therefor.


                                   ARTICLE IV
                             COMMITTEE OF DIRECTORS

         SECTION 4.1. Designation,  Powers and Name. The Board of Directors may,
by  resolution  passed by a majority of the whole Board,  designate  one or more
committees,  including, if they shall so determine, an Executive Committee, each
such  committee to consist of two or more of the  directors of the  corporation.
The  committee  shall have and may  exercise  such of the powers of the Board of
Directors in the  management of the business and affairs of the  corporation  as
may be provided in such resolution.  The committee may authorize the seal of the
corporation  to be  affixed  to all papers  which may  require  it. The Board of
Directors  may  designate  one or more  directors  as  alternate  members of any
committee,  who may replace any absent or disqualified  member at any meeting of
such  committee.  In the  absence  or  disqualification  of any  member  of such
committee or committees,  the member or members  thereof  present at any meeting
and not disqualified from voting, whether or not he or they constitute a quorum,
may  unanimously  appoint another member of the Board of Directors to act at the
meeting in the place of any such absent or disqualified  member.  Such committee
or committees shall have such name or names and such limitations of authority as
may be  determined  from  time to time by  resolution  adopted  by the  Board of
Directors.
         SECTION 4.2.  Minutes. Each committee of directors shall  keep regular
minutes of its proceedings and report the same to the Board of Directors when
required.
         SECTION 4.3.  Compensation. Members of special or standing committees
may be allowed compensation for attending committee meetings, if the Board of 
Directors shall so determine.

                                    ARTICLE V
                                     NOTICE

         SECTION 5.1. Methods of Giving Notice. Whenever under the provisions of
the statutes,  the  Certificate of  Incorporation  or these  by-laws,  notice is
required to be given to any director,  member of any  committee or  stockholder,
such  notice  shall be in writing  and  delivered  personally  or mailed to such
director,  member or  stockholder;  provided that in the case of a director or a
member of any  committee  such  notice may be given  orally or by  telephone  or
telegram. If mailed, notice to a director,  member of a committee or stockholder
shall be deemed to be given when deposited in the United States mail first class
in a sealed envelope, with postage thereon prepaid,  addressed, in the case of a
stockholder,  to the stockholder at the  stockholder's  address as it appears on
the  records of the  corporation  or, in the case of a director or a member of a
committee, to such person at his business address. If sent by telegraph,  notice
to a  director  or member of a  committee  shall be deemed to be given  when the
telegram, so addressed, is delivered to the telegraph company.
         SECTION  5.2.  Written  Waiver.  Whenever  any notice is required to be
given under the provisions of the statutes,  the Certificate of Incorporation or
these  by-laws,  a waiver  thereof in  writing,  signed by the person or persons
entitled to said notice,  whether before or after the time stated therein, shall
be deemed equivalent thereto.


                                   ARTICLE VI
                                    OFFICERS

         SECTION 6.1. Officers.  The officers of the corporation are Chairman of
the Board and Co-Chief  Executive  Officer,  a President and Co-Chief  Executive
Officer,  a  Senior  Executive  Vice  President-Assistant   Chairman,  a  Senior
Executive Vice President-Assistant  President, one or more Vice Presidents,  any
one or more which may be designated an Executive  Vice  President  and/or Senior
Vice  President,  a Vice  President-Finance,  a  Secretary,  a  Treasurer  and a
Controller.  The Board of Directors may by resolution  create the office of Vice
Chairman  of the Board  and  define  the  duties  of such  office.  The Board of
Directors may appoint such other  officers and agents  including  Assistant Vice
Presidents,  Assistant  Secretaries and Assistant  Treasurers,  as it shall deem
necessary,  who shall hold their offices for such terms and shall  exercise such
powers and perform such duties as shall be determined  by the Board.  Any two or
more offices, other than the offices of President and Secretary,  may be held by
the same person.  No officer shall execute,  acknowledge,  verify or countersign
any instrument on behalf of the  corporation in more than one capacity,  if such
instrument is required by law, by these by-laws or by any act of the corporation
to be executed, acknowledged, verified or countersigned by two or more officers.
The Chairman of the Board and Co-Chief  Executive  Officer and the President and
Co-Chief  Executive Officer shall be elected from among the directors.  With the
foregoing exceptions, none of the other officers need be a director, and none of
the officers need be a stockholder of the corporation.
         SECTION  6.2.  Election  and  Term  of  Office.  The  officers  of  the
corporation  shall be elected  annually by the Board of  Directors  at its first
regular  meeting  held  after the  annual  meeting  of  stockholders  or as soon
thereafter as  conveniently  possible.  Each officer shall hold office until his
successor  shall have been chosen and shall have qualified or until his death or
the effective date of his resignation or removal,  or until he shall cease to be
a  director  in the case of the  Chairman  of the Board and  Co-Chief  Executive
Officer and the President and Co-Chief Executive Officer.
         SECTION 6.3. Removal and  Resignation.  Any officer or agent elected or
appointed by the Board of Directors may be removed with cause by the affirmative
vote of the Board of Directors whenever, in its judgment,  the best interests of
the  corporation  shall be served  thereby,  but such  removal  shall be without
prejudice  to the  contractual  rights,  if any, of the person so  removed.  Any
officer may resign at any time by giving written notice to the corporation.  Any
such resignation  shall take effect at the date of the receipt of such notice or
at any later time specified therein, and unless otherwise specified therein, the
acceptance of such resignation shall not be necessary to make it effective.
         SECTION 6.4.  Vacancies. Any vacancy occurring in any  office of the
corporation by death, resignation,removal or otherwise, may be filled by the 
Board of Directors for the unexpired portion of the term.
         SECTION 6.5.  Salaries.  The salaries of all officers and agents of the
corporation  shall  be  fixed  by the  Board of  Directors  or  pursuant  to its
direction;  and no officer  shall be  prevented  from  receiving  such salary by
reason of his also being a director.
         SECTION 6.6. Chairman of the Board and Co-Chief Executive Officer.  The
Chairman  of the Board and  Co-Chief  Executive  Officer  shall  preside  at all
meetings of the Board of Directors or of the stockholders of the corporation. In
the  Chairman's  absence,  or at the  election  of the  President  and  Co-Chief
Executive Officer and the Chairman of the Board and Co-Chief  Executive Officer,
such  duties  shall be  attended  to by the  President  and  Co-Chief  Executive
Officer.  The Chairman of the Board and the President shall formulate and submit
to the Board of Directors or the Executive  Committee  matters of general policy
for the corporation and shall perform such other duties as usually  appertain to
the office or as may be  prescribed  by the Board of Directors or the  Executive
Committee.  The Chairman of the Board and Co-Chief Executive Officer shall, with
the President and Co-Chief Executive Officer, be the principal executive officer
of the corporation and, subject to the control of the Board of Directors,  shall
in general  supervise  and control the business and affairs of the  corporation.
The  Chairman  of the Board and  Co-Chief  Executive  Officer,  acting  with the
President and Co-Chief  Executive  Officers  shall have the power to appoint and
remove  subordinate  officers,  agents and  employees,  except those  elected or
appointed  by the Board of  Directors.  The  Chairman of the Board and  Co-Chief
Executive  Officer,  acting with the President and Co-Chief  Executive  Officer,
shall keep the Board of Directors and the Executive Committee fully informed and
shall consult them  concerning the business of the  corporation.  Either or both
may sign with the  Secretary or any other officer of the  corporation  thereunto
authorized by the Board of Directors, certificates for shares of the corporation
and any deeds,  bonds,  mortgages,  contracts,  checks,  notes,  drafts or other
instruments  which the Board of Directors has authorized to be executed,  except
in cases where the signing and execution thereof has been expressly delegated by
these by-laws or by the Board of Directors to some other officer or agent of the
corporation,  or shall be required by law to be  otherwise  executed.  Either or
both the Chairman of the Board and the President  shall vote, or give a proxy to
any other officer of the  corporation  to vote, all shares of stock of any other
corporation  (except that the Board of Directors  shall vote, or give a proxy to
one or more  member(s) of the Board to vote,  all shares of the stock of Stewart
Title Guaranty  Company)  standing in the name of the corporation and in general
they shall  perform  all other  duties  normally  incident  to the office of the
Chairman of the Board and Co-Chief  Executive Officer and President and Co-Chief
Executive  Officer,   and  such  other  duties  as  may  be  prescribed  by  the
stockholders,  the Board of Directors or the  Executive  Committee  from time to
time. In the absence of the President and Co-Chief Executive Officer,  or in the
event such  officer is unable or refuses to act,  the  Chairman of the Board and


Co-Chief  Executive  Officer shall perform the duties and exercise the powers of
the President and Co-Chief Executive Officer.  If the office of the President is
vacant, the Chairman of the Board shall be the Chief Executive Officer.
         SECTION 6.7. President and Co-Chief  Executive  Officer.  The President
and  Co-Chief  Executive  Officer  shall,  with the  Chairman  of the  Board and
Co-Chief  Executive  Officer,   be  the  principal   executive  officer  of  the
corporation  and  subject  to the  control of the Board of  Directors,  shall in
general  supervise and control the business and affairs of the  corporation.  In
the absence of the Chairman of the Board and  Co-Chief  Executive  Officer,  the
President  and Co-Chief  Executive  Officer shall preside at all meetings of the
Board of Directors and of the Stockholders. The President and Co-Chief Executive
Officer,  acting with the Chairman of the Board and Co-Chief  Executive Officer,
shall have the power to  appoint  and remove  subordinate  officers,  agents and
employees,  except those  elected or appointed  by the Board of  Directors.  The
President and Co-Chief Executive Officer,  acting with the Chairman of the Board
and  Co-Chief  Executive  Officer,  shall  keep the Board of  Directors  and the
Executive  Committee  fully  informed  and shall  consult  them  concerning  the
business of the  corporation.  Either or both may sign with the Secretary or any
other officer of the corporation thereunto authorized by the Board of Directors,
certificates  for shares of the  corporation  and any deeds,  bonds,  mortgages,
contracts,  checks,  notes,  drafts  or other  instruments  which  the  Board of
Directors has  authorized to be executed,  except in cases where the signing and
execution thereof has been expressly  delegated by these by-laws or by the Board
of  Directors  to some other  officer or agent of the  corporation,  or shall be
required by law to be  otherwise  executed.  Either or both the  Chairman of the
Board and the President  shall vote, or give a proxy to any other officer of the
corporation to vote, all shares of stock of any other  corporation  (except that
the Board of Directors  shall vote, or give a proxy to one or more  member(s) of
the Board to vote,  all shares of the stock of Stewart Title  Guaranty  Company)
standing in the name of the  corporation  and in general they shall  perform all
other duties normally incident to the office of President and Co-Chief Executive
Officer and Chairman of the Board and Co-Chief  Executive Officer and such other
duties as may be prescribed by the  stockholders,  the Board of Directors or the
Executive  Committee  from time to time.  In the absence of the  Chairman of the
Board and Co-Chief Executive Officer,  or in the event such officer is unable or
refuses to act, the President and Co-Chief  Executive  Officer shall perform the
duties  and  exercise  the  powers of the  Chairman  of the  Board and  Co-Chief
Executive  Officer.  If the office of the  Chairman of the Board is vacant,  the
President shall be the Chief Executive Officer.
         SECTION  6.8.  Vice  President.  In the  absence of the  President  and
Co-Chief  Executive Officer and the Chairman of the Board and Co-Chief Executive
Officer,  or in the event both are  unable or refuse to act,  either or both the
Senior Executive Vice President-Assistant Chairman and the Senior Executive Vice
President-Assistant  President  (or in the event both such offices are vacant or
both such  officers  are  unable or refuse to act,  the Vice  President-Finance)
shall  perform the duties and exercise the powers of the  President and Co-Chief
Executive Officer and the Chairman of the Board and Co-Chief  Executive Officer.
In the event the offices of both Chairman and  President are vacant,  the Senior
Executive  Vice  President-Assistant  Chairman  shall  perform  the  duties  and
exercise  the powers of the  Chairman  and  Co-Chief  Executive  Officer and the
Senior Executive Vice President-Assistant President shall perform the duties and
exercise the powers of the President and Co-Chief  Executive  Officer.  Any Vice
President may sign, with the Secretary or Assistant Secretary,  certificates for
shares of the  corporation.  The Vice Presidents shall perform such other duties
as from time to time may be assigned to them by the Chairman, the President, the
Board of Directors or the Executive Committee.
         SECTION 6.9. Secretary. The Secretary shall (a) keep the minutes of the
meetings  of  the  stockholders,  the  Board  of  Directors  and  committees  of
directors;  (b) see  that all  notices  are duly  given in  accordance  with the
provisions  of these  by-laws and as required by law;  (c) be  custodian  of the
corporate  records and of the seal of the corporation,  and see that the seal of
the corporation or a facsimile thereof is affixed to all certificates for shares
prior to the issue  thereof  and to all  documents,  the  execution  of which on
behalf of the  corporation  under its seal is duly authorized in accordance with
the provisions of these by-laws;  (d) keep or cause to be kept a register of the
post  office  address  of each  stockholder  which  shall be  furnished  by such
stockholder; (e) sign with the President, or an Executive Vice President or Vice
President,  certificates for shares of the corporation, the issue of which shall
have been  authorized by resolution of the Board of Directors;  (f) have general
charge of the  stock  transfer  books of the  corporation;  and (g) in  general,
perform all duties  normally  incident to the office of Secretary and such other
duties as from time to time may be assigned to him by the  President,  the Board
of Directors or the Executive Committee.
         SECTION 6.10.  Treasurer.  If required by the Board of  Directors,  the
Treasurer shall give a bond for the faithful discharge of his duties in such sum
and with such surety or sureties as the Board of Directors shall  determine.  He
shall have charge and custody of and be responsible for all funds and securities
of the corporation;  receive and give receipts for monies due and payable to the
corporation  from any source  whatsoever and deposit all such monies in the name
of the corporation in such banks, trust companies or other depositories as shall
be selected in accordance  with the  provisions of Section 7.3 of these by-laws,
and in general,  perform all duties normally incident to the office of Treasurer
and  such  other  duties  as from  time to time  may be  assigned  to him by the
President, the Board of Directors or the Executive Committee.
         SECTION 6.11. Controller.  The Controller shall prepare, or cause to be
prepared,  for submission at each regular meeting of the Board of Directors,  at
each  annual  meeting of the  stockholders,  and at such  other  times as may be


required by the Board of Directors,  the President or the Executive Committee, a
statement of financial  condition  of the  corporation  in such detail as may be
required;  and in  general,  perform  all the duties  incident  to the office of
Controller  and such other duties as from time to time may be assigned to him by
the President, the Board of Directors or the Executive Committee.
         SECTION  6.12.   Assistant   Secretary  or  Treasurer.   The  Assistant
Secretaries and Assistant  Treasurers shall, in general,  perform such duties as
shall be assigned to them by the Secretary or the Treasurer, respectively, or by
the President,  the Board of Directors or the Executive Committee. The Assistant
Secretaries and Assistant  Treasurers  shall, in the absence of the Secretary or
Treasurer,  respectively,  perform all  functions  and duties  which such absent
officers may delegate,  but such delegation shall not relieve the absent officer
from  the   responsibilities  and  liabilities  of  his  office.  The  Assistant
Secretaries may sign, with the President or a Vice President,  certificates  for
shares of the  corporation,  the issue of which shall have been  authorized by a
resolution  of  the  Board  of  Directors.   The  Assistant   Treasurers   shall
respectively, if required by the Board of Directors, give bonds for the faithful
discharge  of their  duties in such sums and with such  sureties as the Board of
Directors shall determine.

                                   ARTICLE VII
                         CONTRACTS, CHECKS AND DEPOSITS

         SECTION 7.1.  Contracts.  Subject to the provisions of Section 6.1, the
Board of Directors  may  authorize any officer,  officers,  agent or agents,  to
enter into any contract or execute and deliver any instrument in the name of and
on behalf of the  corporation,  and such authority may be general or confined to
specific instances.
         SECTION 7.2. Checks, etc. All checks,  demands,  drafts or other orders
for the payment of money, notes or other evidences of indebtedness issued in the
name of the  corporation,  shall be signed by such  officer or  officers or such
agent or agents of the corporation,  and in such manner,  as shall be determined
by the Board of Directors.
         SECTION  7.3.  Deposits.  All funds of the  corporation  not  otherwise
employed shall be deposited  from time to time to the credit of the  corporation
in such banks,  trust companies or other  depositories as the Board of Directors
may select.

                                  ARTICLE VIII
                              CERTIFICATES OF STOCK

         SECTION 8.1.  Issuance.  Each stockholder of this corporation  shall be
entitled to a certificate or certificates  showing the number of shares of stock
registered in his name on the books of the corporation.  The certificates  shall
be in such form as may be determined by the Board of Directors,  shall be issued
in numerical  order and shall be entered in the books of the corporation as they
are issued.  They shall exhibit the holder's name and number of shares and shall
be  signed by the  President  or a Vice  President  and by the  Secretary  or an
Assistant Secretary. If any certificate is countersigned (1) by a transfer agent
other than the  corporation  or any  employee  of the  corporation,  or (2) by a
registrar  other than the  corporation or any employee of the  corporation,  any
other signature on the certificate may be a facsimile.  If the corporation shall
be  authorized  to issue more than one class of stock or more than one series of
any class, the designations, preferences and relative participating, optional or
other  special  rights  of  each  class  of  stock  or  series  thereof  and the
qualifications, limitations or restrictions of such preferences and rights shall
be set forth in full or summarized on the face or back of the certificate  which
the  corporation  shall issue to represent  such class of stock;  provided that,
except as otherwise provided by statute,  in lieu of the foregoing  requirements
there  may be set  forth  on the  face  or  back of the  certificate  which  the
corporation  shall issue to represent such class or series of stock, a statement
that the  corporation  will  furnish to each  stockholder  who so  requests  the
designations, preferences and relative, participating, optional or other special
rights of each class of stock or series thereof and qualifications,  limitations
or restrictions of such preferences and rights. All certificates  surrendered to
the corporation for transfer shall be cancelled and no new certificate  shall be
issued until the former  certificate for a like number of shares shall have been
surrendered and cancelled,  except that in the case of a lost, stolen, destroyed
or mutilated  certificate  a new one may be issued  therefor upon such terms and
with such  indemnity,  if any, to the  corporation as the Board of Directors may
prescribe.  Certificates shall not be issued  representing  fractional shares of
stock.
         SECTION 8.2. Lost Certificates. The Board of Directors may direct a new
certificate  or  certificates  to be  issued  in  place  of any  certificate  or
certificates  theretofore  issued by the corporation  alleged to have been lost,
stolen or destroyed,  upon the making of an affidavit of that fact by the person
claiming  the  certificate  of stock  to be  lost,  stolen  or  destroyed.  When
authorizing  such  issue of a new  certificate  or  certificates,  the  Board of
Directors may, in its  discretion  and as a condition  precedent to the issuance
thereof,  require the owner of such lost,  stolen or  destroyed  certificate  or
certificates, or his legal representative,  to advertise the same in such manner
as it  shall  require  or to give the  corporation  a bond in such sum as it may
direct as indemnity  against any claim that may be made against the  corporation
with  respect  to the  certificate  or  certificates  alleged to have been lost,
stolen or destroyed, or both.


         SECTION  8.3.  Transfers.  Upon  surrender  to the  corporation  or the
transfer agent of the  corporation of a certificate  for shares duly endorsed or
accompanied  by proper  evidence  of  succession,  assignment  or  authority  to
transfer,  it shall be the duty of the corporation to issue a new certificate to
the  person  entitled  thereto,  cancel  the  old  certificate  and  record  the
transaction upon its books.  Transfers of shares shall be made only on the books
of the  corporation  by  the  registered  holder  thereof,  or by  his  attorney
thereunto  authorized  by power of attorney and filed with the  Secretary of the
corporation or the Transfer Agent.
         SECTION 8.4. Registered Stockholders. The corporation shall be entitled
to treat the  holder of record of any share or shares of stock as the  holder in
fact thereof and, accordingly,  shall not be bound to recognize any equitable or
other  claim to or  interest  in such  share or  shares on the part of any other
person, whether or not it shall have express or other notice thereof,  except as
otherwise provided by the laws of the State of Delaware.

                                   ARTICLE IX
                                    DIVIDENDS

         SECTION  9.1.  Declaration.  Dividends  upon the  capital  stock of the
corporation,  subject to the provisions of the Certificate of Incorporation,  if
any,  may be  declared  by the Board of  Directors  at any  regular  or  special
meeting,  pursuant  to law.  Dividends  may be paid in cash,  in  property or in
shares of  capital  stock,  subject  to the  provisions  of the  Certificate  of
Incorporation.
         SECTION 9.2. Reserve. Before payment of any dividend,  there may be set
aside out of any funds of the  corporation  available for dividends  such sum or
sums as the Board of Directors from time to time, in their absolute  discretion,
think proper as a reserve or reserves to meet  contingencies,  or for equalizing
dividends,  or for repairing or maintaining any property of the corporation,  or
for such other purpose as the Board of Directors  shall think  conclusive to the
interest of the  corporation,  and the  Directors may modify or abolish any such
reserve in the manner in which it was created.

                                    ARTICLE X
                                 INDEMNIFICATION

         SECTION 10.1. Third Party Actions.  The corporation shall indemnify any
person  who  was or is a  party  or is  threatened  to be  made a  party  to any
threatened,  pending or completed  action,  suit or  proceeding,  whether civil,
criminal,  administrative  or  investigative  (other than an action by or in the
right of the  corporation)  by reason of the fact that he is or was a  director,
officer,  employee  or agent of the  corporation,  or is or was  serving  at the
request of the corporation as a director,  officer, employee or agent of another
corporation,  partnership,  joint venture,  trust or other  enterprise,  against
expenses  (including  attorneys'  fees),  judgments,  fines and amounts  paid in
settlement  actually  and  reasonably  incurred by him in  connection  with such
action,  suit or  proceeding  if he  acted  in good  faith  and in a  manner  he
reasonably  believed  to be in or not  opposed  to  the  best  interests  of the
corporation,  and with  respect to any  criminal  action or  proceeding,  had no
reasonable  cause to believe his conduct was unlawful.  The  termination  of any
action, suit or proceeding by judgment, order, settlement or conviction, or upon
a plea of nolo  contendere  or its  equivalent,  shall not, of itself,  create a
presumption  that the person did not act in good faith and in a manner  which he
reasonably  believed  to be in or not  opposed  to  the  best  interests  of the
corporation,  and  with  respect  to any  criminal  action  or  proceeding,  had
reasonable cause to believe that his conduct was unlawful.
         SECTION  10.2.  Actions  by or in the  Right  of the  Corporation.  The
corporation shall indemnify any person who was or is a party or is threatened to
be made a party to any threatened,  pending or completed action or suit by or in
the right of the corporation to procure a judgment in its favor by reason of the
fact  that  he  is or  was  a  director,  officer,  employee  or  agent  of  the
corporation,  or is or was  serving  at the  request  of  the  corporation  as a
director, officer, employee or agent of another corporation,  partnership, joint
venture,  trust or other enterprise against expenses (including attorneys' fees)
actually  and  reasonably  incurred  by him in  connection  with the  defense or
settlement  of such  action or suit if he acted in good faith and in a manner he
reasonably  believed  to be in or not  opposed  to  the  best  interests  of the
corporation and except that no  indemnification  shall be made in respect of any
claim,  issue or matter as to which such person  shall have been  adjudged to be
liable for misconduct in the performance of his duty to the  corporation  unless
and only to the  extent  that the Court of  Chancery  or the court in which such
action or suit was brought shall determine upon  application  that,  despite the
adjudication of liability but in view of all the circumstances of the case, such
person is fairly and  reasonably  entitled to indemnity for such expenses  which
the Court of Chancery or such other court shall deem proper.
         SECTION  10.3.  Determination  of Conduct.  The  determination  that an
officer, director, employee or agent, has met the applicable standard of conduct
set forth in  Sections  10.1 and 10.2  (unless  indemnification  is ordered by a
court)  shall be made (1) by the  Board of  Directors  by a  majority  vote of a
quorum  consisting  of Directors  who were not parties to such  action,  suit or
proceeding,  or (2) if such quorum is not  obtainable,  or even if  obtainable a
quorum of disinterested  directors so directs, by independent legal counsel in a
written opinion, or (3) by the stockholders.


         SECTION  10.4.  Payment of Expenses in  Advance.  Expenses  incurred in
defending a civil or criminal  action,  suit or proceeding  shall be paid by the
corporation  in  advance  of the  final  disposition  of  such  action,  suit or
proceeding  as  authorized  by  the  Board  of  Directors  upon  receipt  of  an
undertaking by or on behalf of the director, officer, employee or agent to repay
such amount if it shall  ultimately be determined  that he is not entitled to be
indemnified by the corporation as authorized in this Article X.
         SECTION  10.5.   Indemnity  Not  Exclusive.   The  indemnification  and
advancement of expenses provided  hereunder or granted pursuant hereto shall not
be deemed  exclusive of any other rights to which those seeking  indemnification
or the  advancement  of  expenses  may  be  entitled  under  any  other  by-law,
agreement, vote of stockholders or disinterested directors or otherwise, both as
to action in his official  capacity and as to action in another  capacity  while
holding such office.  The  indemnification  and advancement of expenses provided
hereunder or granted  pursuant  hereto  shall,  unless  otherwise  provided when
authorized or ratified, continue as to a person who has ceased to be a director,
officer,  employee  or agent  and  shall  inure  to the  benefit  of the  heirs,
executors and administrators of such a person.

                                   ARTICLE XI
                                  MISCELLANEOUS

         SECTION 11.1. Seal. The corporate seal shall have inscribed thereon the
name of the corporation,  and the words "Corporate Seal, Delaware." The seal may
be used by  causing it or a  facsimile  thereof  to be  impressed  or affixed or
otherwise reproduced.
         SECTION 11.2.  Books. The books of the corporation may be kept (subject
to any provision contained in the statutes) outside the State of Delaware at the
offices of the  corporation at Houston,  Texas, or at such other place or places
as may be designated from time to time by the Board of Directors.

                                   ARTICLE XII
                                    AMENDMENT

                  These  by-laws  may be  altered,  amended or  repealed  at any
regular  or  special  meeting  of the Board of  Directors  if (i) notice of such
alteration,  amendment  or repeal is contained in the notice of such meeting and
(ii) such alteration,  amendment or repeal is approved by a majority vote of the
directors  elected by the holders of the Common Stock and a majority vote of the
directors  elected by the holders of Class B Common Stock;  with each such class
of directors voting separately.