TEEE ATTORNEY GENERAL
OF-XAS
AIWTIN, TEXAS V53711
December 5, 1968
Honorable Jerry Sadler
Commissioner
General Land Office
Austin, Texas 78781
Opinion Noi M-311
Re: Whether Commissioner of
General Land Office or
Veterans' Land Board may
reinstate forfeited pur-
chase contract.
Dear Mr. Sadler:
In your recent request for opinion, you present the
following fact situation and questions in regard to the
operation of the Veterans'Land Board and its affairs.
“It has been the general concensus of opinion
in the past years, and it is currently the
opinion of this office, that the administration
of the Veterans Land Program is primarily the
duty of the General Land Office and its employees.
. . . .
"The Board held a forfeited land sale on
November 19, 1968, at 11:OO A.M. here in the
General Land Office following the provisions of
Article 5421m. Just prior to the sale, but sub-
sequent to the time that the Board met and ordered
tracts to be advertised for resale, one of the
original veteran purchasers, whose tract was forfeited
in accordance with Article 542lm, and whose tract was
ordered advertised for resale in accordance with
Article 542lm, asked the Commissioner of the General
Land Office to accept payment in full of the original
contract and to furnish him with a paid-in-full deed.
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.
Hon. Jerry Sadler, page 2 (M-311 )
The Commissioner of the General Land Office
refused to accept payment in full; however, the
Veterans Land Board, having some question in their
mind, would like for your office to inform us of
the lecal riahts of the Commissioner to reinstate
the contract referred to above. If you conclude that
the contract of sale cannot be reinstated after it
has been forfeited and ordered advertised for resale,
can the original veteran tender the full payment
due under the contract and receive a paid-in-full
deed after he has lost all ri'ghts to reinstate his
contract?" (Emphasis supplied to question.)
Article III, Section 49b of the Texas Constitution provides in
part as follows:
"The Commissioner of the General Land Office
shall act as Chairman of the Board and shall
be the administrator of the Veterans' Land
Program under such terms and restrictions
._-. _ as .
are now or may hereafter be prOViaea by law."
Section 2 of Article 5421m, Vernon's Civil Statutes, provides
in part that:
"The Commissioner of the General Land Office
shall be Chairman of the Board and Administrator
of the Veterans' Land Program . . . and shall
Perform
.- ~~~ ~~~ all duties and functions of the Board
prescribed by law, except those prescribed in
section 2(A) hereof, which shall be performed
by the Veterans' Land Board as constituted.
(Emphasis supplied)
Said Section 2(A), above referred to provides in part that:
"The duties of the Veterans' Land Board ... shall
e... 0 provide for the forfeiture of contracts
of sale and purchase and the resale of forfeited
rand; and to formulate such policies, rules and
regulations as may be necessary, not in conflict
with the provisions of law, to insure the proper
administration of the law and to carry out the
intent and purposes thereof." (Emphasis supplied)
Section 19 of Article 542lm, provides in part that:
"In any case where the sale has been forfeited and
title to the land revested in the Veterans' Land
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Hon. Jerry Sadler, page 3 (M-311 )
Fund, the original purchaser or his vendee shall
have the right to reinstate the purchase contract
at any time prior to the date on which the Board
shall have met and ordered the said lands to be
advertised for resale, or for lease for mineral
development but not thereafter."
In answer to your question as presented, it is the opinion
of this office that the Commissioner of the General Land Office,
as Administrator of the Veterans' Land Program, is without
authority to reinstate a purchase contract after it has been
forfeited and ordered advertised for resale; and further, that
once the contract has been forfeited and the land ordered ad-
vertised for resale, the original veteran may not, in the
absence of further action on the part of the Veterans' Land
Board as hereinafter set out, tender the full payment due
under the contract and "receive a paid-in-full deed," for
to so allow would require a prior reinstating of the contract,
which is prohibited.
It must be pointed out, however, that the above answers are
directed, and limited, to the Commissioner of the General Land
Office as statutory administrator of the Veteran's Land
Program and are predicated upon the premise that the contract
has been forfeited with no subsequent action by the Veterans'
Land Board as hereinafter described. Forfeiture provisions in
statutes are strictly construed, not favored, and will be
interpreted where possible to prevent, rather to cause, a
forfeiture. 25 Tex. Jur.Zd 511, Forfeitures, Sec. 10; also
p. 502, Sec. 3, declaring forfeitures to be a harsh remedy
disfavored both at law and in equity.
There appears to be no reason why the forfeiture provisions
of a contract between the Veterans' Land Board and a veteran
purchaser would not be subject to the same rules in regard
to their enforcement, waiver and setting aside as would a like
contract between two individuals, as such rules are set out
in the case of Stevenson v. Lohman, 218 S.W.Zd 311, 314 (Tex.
Civ.App. 1949, error ref.) to wit:
We agree with appellant that the courts do
not favor forfeiture and when proper equities are
shown to exist equity will intervene and will deny
unjust enforcement of the naked legal right to a for-
feiture. On the other hand, when parties enter into a
contract providing that either should forfeit his
rights thereunder upon default in any of the material
provisions, thereof, it then becomes the burden of
the party resisting such forfeiture to plead and prove
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Hon. Jerry Sadler, page 4 (M-311 )
such facts as would justify a court of equity
in preventing his adversary from doing that which
otherwise, under the law, he has a right to do, but
in equity and good conscience he should not be
permitted to do."
Section 19 of Article 542l.mprovides certain prerequisites
to the declaring of a forfeiture by the Veterans' Land Board.
Automatic forfeiture is not specified, but forfeiture operates
at the discretion of the Board.
Section 21 of Article 542lm, provides in part that: "The
Board is hereby made the sole judge of forfeiture of aTcon-
tract under this Act, and anyone availing himself of the pro-
visions of this Act shall by so doing agree to abide by the
same ..." (Emphasis supplied) No specific time limit is
placed upon the Board within which it can make. such determin-
ation.
Section 17 of Article 5421m provides in part that 'I...in any
individual case, the Board may, for good cause, postpone from
time to time, upon such terms as the Board may deem proper, the
payment of the whole or any part of any installment of the
selling price or interest thereon." No specific time limitation
is placed upon the Board within which it can make such decision
to postpone such payment. When forfeitures are intended to
take place automatically, the time should be definitely fixed.
25 Tex.Jur.2d 517, Sec. 17, Forfeitures.
It would therefore appear that upon sufficient showing to the
Board that in equity and good conscience the contract should
not be finally forfeited, the Board, being the "sole judge of
forfeiture", and not having lost administrative jurisdiction
of the forfeiture action, may by majority vote determine that
there has in fact been no forfeiture and annul its purported
forfeiture, thus in effect reinstating the contract. It would
further appear that for "good cause" the Board by majority vote
may postpone the due date of the delinquent payments, thus
rescinding the purported forfeiture and reinstating the con-
tract. There being no specific limitation of time within which
the Board may take either such action, and any subsequent bidder
having agreed to "abide by the same", it is the opinion of
this office that even though the Board has theretofore met and
ordered said lands to be advertised for resale, either of such
actions may be taken by the Board and the contract reinstated
at any time, at least until the Board has accepted a subsequent
bid for resale and the rights of third parties have vested.
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.
Hon. Jerry Sadler, page 5 (M-311 )
SUMMARY
The Commissionerod the General Land
Office, as Administrator of the Veterans'
Land Program, is without authority to
accept delinquent payments and reinstate
a purchase contract after the same has been
forfeited and the Veterans Land Board shall
have met and ordered the lands to be ad-
vertised for resale: but the Veterans' Land
Board may do so at any time, at least until it
has acceoted the bid of a subsecuent DUrChaSer
and the kghts of third parties-have tested.
2-@ s very truly,
&&,&&. &pzdr..~,.,
RA ORDC.MARTIN
rney General of Texas
Prepared by Harold G. Kennedy u
Assistant Attorney General
APPROVED:
OPINION COMMITTEE
Kerns Taylor, Chairman
Jerry Roberts
David Longoria
Fielding Early
Bob Flowers
A. J. CARUBBI, JR.
Executive Assistant
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