Case Information

*1 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- .mendixq Artlcls islature, 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 .$QU rqqueet 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 . . .; 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 eny loan upon euoh leaeehold estatee &all not eroeed a period of ten (10) yeare. If anj pert 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 athall be tranaierred to the oarpuny takbq! mob mort&pA@ or lieIbn

The material portion of Artiole 4769 of 4, The 78, read0 M r0uma

. - Pqa (038U) Board of Inmranoe Carisrlcmrs,

?&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 by law, ‘in prcmlaeory notee or other obl&atIom aa- deflned 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 b J 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 emendIng Article 4766, the Artlole In full an amended and the above quoted prorl8lon re-enaota 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 othe@ valid lien upou uninomnbered real estate ritnated in thIe State, the tit& to vhiohmal estate le valid and vhich Ia forty (40) per oent more than the mount the nsrkmt value loaned thema, exolualra of bulldlnge, . , . aad the polloy or pollolee tzmeferred to the ocmpany taking suoh mortgei&e or lien.* to Artlola 4766 by Home Bill 51, Forty-e.eventh

The tmendmqt the above quote6 provielon, merely enlarged or Loglslatme bj ad6m extended the flald of eeourltler whIah Artlole 4766, Vernon% Annotated Oltil Statutes defirreb M l Tessr, reourltler.” ThU etatuta la to be oontafned in 4, Tltb 78 read in hammy with. %o other artlolw 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 used la 4769 vith lta that it had kawladgp the lmgnage 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 benefita to otmpt etdotly vith St8 pavTldolM.

In 39 Texea Jurir., pars. U5, psgr ?53, It in aalA:

Boerd lhmrance Comleelaaere, (O-38U) Page to one another end altbw they were peased at

reference 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 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