TEIEA'ITOI+NEY GENERAL
OFTEXAS
Board of Ineurance Camlleelonere
Auetln, Texae
AttentiDn: m. George Pan Fleet, Aatuary
oent~ellr OplnlonIlo. O-38l3
Rea Doe0 the prod.aloll "first
llem upon l.e.aeehold ee-
tatas lurealproperty end
lmprovemente eltuated tbere-
on,etc~.,~ as added b~Eowe
Bill 51, ~orty-semnth Leg-
islature, .mendixq Artlcls
4766 deflnlng "Texea Seourl-
tiee" came within the defi-
nition of the tag reduokrg
eecurity mgltloned in Artl-
ale 4769, Vernon'e Annotated
Clrll statntee
In your letter of July 24 m mlxnlt the above question upon
vhloh .$QUrqqueet .~.
the opinlcn of thle depart+&.
BomeBlll51,Ac~ of theFk+mwentbtigieiature; .meaidl&j
ArtioL 4766, Chapter 4, Title 78r~~ernoi'a Annotated Civil Statutes, ae
quoted ti your letter, in psrt reads ae follov'er
Vhe tern %xea Seouritlee,' ea ueed in thla chapter,
shall be held to inolnde . . .; or upon fln3t liens upon
l~mmhol.Ceatatee lu realprcqmrty..sd lmpromwnte eltuated
tllereon, the title to vhloh le valid, and the leasehold hae
not lese tbm thirty (30) yeare to nm before explratlm, pro-
rlded that the dnratlm of eny loan upon euoh leaeehold estatee
&all not eroeed a period of ten (10) yeare. If anj pert of
Me ralne of such real estate is in buildIn@, mob build-
~allbeinspredaea~tficeandtept~ruedf~at.tlesat
fifty (50) peroentof the value thereof lnrae oempmiy
admrlaed to traneaotbuedness lu thle State audthe pollor
or polioies athallbe tranaierred to the oarpuny takbq! mob
mort&pA@ or lieIbn
The material portion of Artiole 4769 of Chapter 4, The 78,
read0 M r0uma
. -
Board of Inmranoe Carisrlcmrs, Pqa 2 (038U)
?&en the repori of the lnverW3nt In Texm’Beourltleo,
M defined by lav, of erq rush ocPpcmle6 M of Deoembrr 3bt
of any par #hall rhov @mt it bar Inveeted on raid da* M
muoh M thirty (30)par cent of Ita total Texsr remmom (u
deflned by law, ‘in prcmlaeory notee or other obl&atIom aa-
oured by mortsags, deed of trtmt, or other lien an Texas real
estate aud/or In locus to reaidenta or oltlzem of Texan
,aeoured by the la&al reserve on the respeotiv’e policiee held
bJ ruoh bomera, the rate of woapatlOn tax r&all be reduoed
to four and five one-hundredth (4.63) per oenti . . . .I
It wlU be noted that Enme Bill So. 51 by emendIngArticle 4766,
re-enaota the Artlole In full an amended and the above quoted prorl8lon
added by the amandmnt, immd1atel.y follme the putloular type seoority
therein deeoribed in vordr 8Im.ll.w aa deeorlbed in Artlole 4769,to-wit,
*pmmlneory notee ar other obligablons, the papnemt of whIoh ie asoured
by a mortgags, deed of true4 or othe@ valid lien upou uninomnbered real
estate ritnated in thIe State, the tit& to vhiohmal estate le valid and
the nsrkmt value of vhich Ia forty (40) per oent more than the mount
loaned thema, exolualra of bulldlnge, . , . aad the polloy or pollolee
tzmeferred to the ocmpany taking suoh mortgei&e or lien.*
The tmendmqt to Artlola Home Bill 51,Forty-e.eventh
4766by
Loglslatme bj ad6m the provielon, merelyenlarged or
above quote6
extended the flald of eeourltler whIah Artlole 4766,Vernon% Annotated
Oltil Statutes defirreb M lTessrreourltler.”
, ThU etatuta la to be
read in hammy with. %o other artlolw oontafned in Chapter4, Tltb 78
of the prorent rtatutor, arrd In fad, ia the key ta,t+e e&Ire ohapter.
It ti appment tit the rS&.ature lnnbnbeb the mandment to
opera* hazmmlona~ with all other pnwinlonr of Chapter 4, Title 78 and
that it had kawladgp of the lmgnage used la Artlole 4769vith lta
provlalum rhllar to that preoeding Um new mourlty added,by Home Bill
51orktIole 4766eB Mended.
lie are mindful that Artlole 4769,rnpra, rel8taa to taxatian
and belq Zn the naM of gl axaaptlcm, - be ~8trlotfJ oawtrued.
Eovever, a dbtluotlon la observed b&men oaMiru~ the rtatutu hriotly
when en&arorln,g to aaoertaia ita maa- and vhen It Ia 8-t to requIzw
persona eeeklu#to a-11 themwelrse of the benefitato otmpt etdotly
vith St8 pavTldolM.
In 39 Texea Jurir., pars. U5, psgr ?53,It in aalA:
Boerd of lhmrance Comleelaaere, Page 3 (O-38U)
reference to one another end altbw they were peased at
dlfferenttlmne or atdifferenteeeelone of the Le&elature .
The purpoee of the 'in par1 naterla' rule of w~truc-
&~~'ie to oarry out the fd.l legishti~ inhnt by giYf1~3
effeottoalllave endpro~leionebearlngupon tbe eeme sub-
ject . . . . The rule appliee where one statute deale with
a subject In ocmprebenelre term snd aother deale vltb a
port&m of the same subject In amore definite way. . . ."
The tem~firet liem upon leaeebold eetatee in real property
end improremente situated thereon' ie well vlthin the cl&& of eeouritles
defined ae "pmnleamy notes or other obligatione secured by mortgage,
deed6 of truet or other lien on Texaa real estate. . . ,. ln wbioh the
ullrty (30) per oent or mom of the "Texae reeerveam may be inmeted for
obtaining the reduction in the gross receipts tax provided by the etatute.
It ie therefore the opinion of this department that the type of
security in Houee Bill 51, Forty-eeventh Legielature, amending Artlole 4766,
Vernon's Annotated Civil Statutee, deeoribed ae 'first liens upon leaee-
hold eatatee in real property end improvemente situated thereon, etc.,'
is to be olaeeed ae a tag reduoing eeomity vltbln the prorialone of
Artlole 47~69, Vernon's Annotated Civil Statutes.
Youm very traly
ATMRwyGEZEFiALOFTEXAS
By /e/Wm. J. B. gins
Wm.J. B. Kins
Am latent
UJRKidbb-de
Almom* l8,1g41 APPFovED
OPllmll
C- BY /a/ B.W.B.
/FJ/ Gerald c. Mann
ATMRnBYGs8xRALoFTEIAs