A-xxm DXXERAL
Honorable James E. Kilday, Director
Xotor TransportationDivision
Rsllroad Commission of Texas
Austin, Texas
Dear Sirs Opinion No. O-2310
Re: Whether Railroad Commission
should collect lO$ of total con-
sideration for lease of certifi-
cate at ii?6inception, or on
monthly payments as they are made.
In your letter of April 29,,1!3&0,you advise that the Rall-
road Commission has just approved an applicationto lease a cergificate
of convenienceand necessity for a period of five years from April 1,
1940, the applicat+on ahowIng the coneideratlonto be Sixty (qi60.00)
Dollars per month rental. You request our opinion as to whe&her.or not,
in collecting the ten (lC$) per cent highway fee required td be paid in
ic Section of Article glib, Vernon's Civil Statutes you should collect
,ten(10s per sent:of'Three Thousand Six Hundred (ji3,600,00) Dollars ln
one sum, the considerationfor the full term of the lease,,or tahether
- you should collect.justten (10%) per chnt of,tha Sixty (460.00)'Dollar
monthly rental as (it la paid.
In s&ion 5 of Article glib, Vernon's Civil Statutes
latlng to common aarrier motor carrler0, it is provided that "in c&z",
certificateis transferred,that the transferee shall pay to the Cpmmiaslon
a sum of'money equal to ten (10s) per cent of the amount paid as a conald-
eratlon for the transfer of the certificate." In our Opinion No. O-1505,-
it was held that this provision appllea to the lease of aertfflcatesof
convenienceand necessity. It Is noted that under the terms of the
statute, the ten (10s) per cent required to be oollected ia upon the
amount a, not t$n (10s) per cent of the amount agreed to be paid. If
the full ten (10s) per cent of the considerationprovided to be paid
over the full period should be collected in advance, and ,Ifthe lease
should be terminated by either or both of the parties before the end of
the lease period, and the monthly payments cease, the State would have
collected more than ten (10s) per oent of the amount paid a8 a consider-
ation for the lease. We do not believe the statute waa meant to make
possible such a situation as fha,t. In our opinion, said ten (10%) per
cent should be collected only as the monthly lease payments mre made.
Yours very truly
ATTORNH GEZ?EMLOF~S
GRLrRS:wc By s/ Glenn R. Lewis
Glenn R. Lewis
Assistant
Attorney General of Texas
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.!-+a-mr RWR Chairman