### 495

OFFICE OF THE ATTORNEY GENERAL OF TEXAS
**AUSTIN**

Honorable Gee. Comptroller of auotlc, "iaxee H. au3ppmr4

Yublta Aaaounta A

, +s roqw8t of thla th8 wwwwat ror afa~lanfI* in Potter


### em lqatlanal 

### Or&n Gorporatioa d In muaretioa tlsemwith pu the rects and **olrwwtanow** erty, awl the respef~tlte 8 in regaz-4 to its taxixtioa. fully stated in attaahed lett&r to pU * **county** &ttorwy, Potter county,from

lor to 1936 the Farmerr Watloaal tlon, wbleh vi) unnderrtmod %aa oubarwre Xatimi4L Grain Corporat$on, survey 137 Blook B, AB&&1~4~ in Potter Gouaty, Texas, aai fall taxes hmdbeen paid up to &s%d fn~lrrdirrg 1MM. State an4 County tarw were aawwad againat thie property for the year 1930 in the nmta si t&e m?iiQaorpcrratioa,

### 496

Eon. ho. %.rt+ppard, page 9

the reaord title owner amor the date of aasaestramt. vubseq,ueAtlp, it haa been claimed that the tit18 to this property had been traASferred to tha 'Jnltsd -rtates. k statsment of the **Taut6** Up011whloh the Gorexnmnt relies Is aontainad IAa letter frox hr. Yeyton X. Evans, General Counnel of the Yaw Credit Mmfnlatratlon, to the &aessor and Collector **0r** Taxes of this aounty, dated July 90, 1937, aa rollovaa:
**S'heParsers Watlonal ksln Corporation was Indebted to the yederal ;raW fjaard (to Whoserunetions the YarmCredit idmiAletratloA euooeedsd under the terms of an exeoutlre order of the President of the United fjtatea 8xeauted Karah 87, 1933) iA a larp ImouAt **0r lUOA87,**  an4 OAJune x3, 1634 it was agreed between the yala?ere htfOAa1 Grain Corporation and the Zarfi Credit Adrtinistration to trawrar a large part of tka Corpomti~*~ asset.6 and those or lta subeldlarleri to the **united** States Governmeat(farm Credit idminlstratloa) In partial extlngulshmnt of the thenexlstlng indebt**Sdn46S.** This agrwment was eub)eot to the appmral
or the Saoretary of the Treawry. The approval of the Saaretary was obtaSnad en Roteabber 7, 1936 ;&e& EIowwor, ablanket a8slgnment or all or the

oovered by the m&pwmeAt aovered by tha agreement of Juw le, 1956 was exeouted by tha Farmars hatloasl Grain CorpOratlOn on October 31, 1936. This awfgawnt contained wordr or grant and aonveymnoe aob lnaluded both real and peraenal property

. . . Separatet3onveyaaces

### 0rpartiaular properties bars been 13preparation **ror** a period of some m&ha, and smq of them have been delirere8, but all have not been put OAreoord. #8 do not consider, however, that the date8 of mmh aonveyanoer 

### orthe data& or their raoordatloa are material iA rWpe8t t0 the **CUeStfOa Of**  **tie right**  or the states or their poUtlOa1 8ubdiVlslon6 to Impwe t~axes thereon.*
*Theproperty In qwrtl6n was eonveYsd **by** daed rrom the Partners National tiprehouse Gorporatloh to the WIted sttttw exaoutad 'all as or octaber 31, 19Sd, but actually
on this the 84th day of Fabntarf, 1997,' which deed wmt

### iion.

Gee.il.

L’hopperd. peg@3

fiba **for** record on Gecmber 17, 1937, ena re00raed in Wolume 850, page42, of tte Deed iiecorde of 

### Potter county.


### *'This propertywasallarbitrarilyasiesaeefortaxation on January 1, 1937, for the year 1937. he find in the file OStke 

### a8aaaoor**and** aollector of taxea for 

### PotterCounty aprinted notice *that onEovembar 7, 193A, the United State6 of breerioa beoam the ownar of 411 real estate,* 4na other propertlen 0r this aorporation. Thie notloe le dated 

### Dcoarrber EQ, 1936, but bate OS

### reoaiptle not ahown.”

Xo question is prasantea here of the immunity,or 

### property owned and held by the Unitad titatee of kmarioa, from atat taxa

### tionof any kind, beoauee it ha6 1onA bean settled beyond dimputs that such property, whether ouned and held for governmental purposes or othexwlee, la exampt, or 

### moreproperly, not aubjeet to thetaxes 

### lerfeaby a State, exoapt by Congraealonal conaent. The only queetio,n presented here la whether or not the proparty Involved was aotually owned and held by the UnitaA Stats6 OS America on January 1, 1987, the bate fixed **by** statute for datarrinlng ownerehlp of property for tax purpose6 for the year.

Upon this Issue oi 

### ?aotregardingovnerehipoithe land %nqueatfon on January 1, 1939, that Is, whether or not earn wan ownod and held by ~armera Batlonal Grain Corporation an thatdata
or by the pa= credit Mmlnistratlon, a6 an inatrumantality OT agency of the UnlteA state4 of %rloa, we find; ev8n in the etatements mede by repreeentatlvee of the Unit& @tat64 of &erloa, a eoniliet of pe4ltlona 

### and **iraats.** 

### tiesme, ‘16 cannot answeryour qmestlon aategorloelly but 6re 

### aonstrainadto 

### answer aam **up&** tha aaaumption that one or the other atate of faotr la true.
In thla oonneotion, it should be stated that we do not have the becetit OSa copy of any deeA, aoel~ent or other alleged muniment of title pae8ing between the ]Parmere lFaflon61 Or4in Corporation and the United Statea, and referred to In attaehsd 

### aorrosponAanoa, but muat aeeume that 

### theraota and atatemanta

### madein regard thereto correctly reflaet the tenor,affect and reading of such in6truma~ts. icitb thie in mind, wa oall yvmrattentlcn to the 8tataBlant eontalned in letter from Mr. Pagton k. Evarm, 

### GeneralCounselofthe Pam Credit Mmlnfstratton, to the ~aeeeor~Collaetor oi Tares for Potter County, dated duly ZO, 1939, and &areinabove eet out aa patt of theHon. Coo. 8. 

### Sheppard,pace4

quoted letter tc you by said ~~seeu6or-Collector of Taxea. It 16 stated therein that the ~armar8 Eational Grain Corporation being lnaabtad to ttia~edaral Iant Board end its 6ucoeanor, the Sarm Credit 

### Adxilulatratio~, agreed,OEL

June18, 

### 1936,to

### transfer
a large part of ita aareta and thoae of lta aubdUariea to the raid fan Cradlt &l&4.nlatratlon tn partial artlnguIahmant
or the then axlatIkg 1nA#bte&e66, 

### whichagreemer;t was eubjeot to the approval of the bacretary of the Treasury. UlEderthe Statutes of ~axaa governing conveyanolng and t&e paaaage of 

### tltiatorealeatate,ouchuneer&anAlng 

### andagreanzent would not aufflos to transfer title to real aatete, but the atatexent la further made thnt *a blanket aaalgnasnt of all of the aaaeta ooverad by the agreement of June 18, **1986,** was exaouta4 by the @#mar8 Xational Greln Corporation on Uatober 31, 1936, rhloh aaalgmsent contslned 

### wordaot 6-t and 

### conveyanceand Ineluded both real 4Aa personal 

### property."

X6are not able to 6ey that the above deaorlba4 Inotruaent did not vest in the United State8 of SMrIoa, throqh the Paw We&it AAmInIatratlon. tltle to the realty In queatlon here, upon It6 approval by the kuratary of the l’reaauq. W are net wvoindful ot the fact that the utual anAeustosary mAe of tranaferrhg title to real eatata ln %xea la by general warrenty deed, 

### lnthefern?

praacrlbedby etatutu, cPantainlng the usual formal oosqmneat part8 of pramiaest habandun;, tanenAum, reAAenAum, warranty and tastimbnium alauara. Andft such inatrumnt or dee4 us6the alnequa noli topoemage OStltLa In Teraa, then we wouid’ay that t&e property hare wouiA be **aubjeat** to %iata and county ad vsloran tax66 for the year 1959, beeauea aueh dead, In thIa usual atetutory form, wasnot axeouted until the Mth day of February, A. 0. 1939. Sor would our aoncluslon **bs** altered ‘by

### thetoott&atraid doe4 purported 

### torelete**baok,** wall a6 of Ootober 31, lQSA,” beeauee, In our opinion, the lotuai Ante ct exaeutlon waouM

govern.
3ut it la a rule of law 

### toowell e6tabllrbsA to require elaboration here, tkat tltla to raai e~rtate In ‘isxaa may pas6 by say 

### writtecinstrument whichotmtaimoexpreae word&!oi &rant or aonvayanoe, thereby evldanoing en Intent between the partlea to effect a transfer of title, aad lb It not neeeaaary that the forppof general warranty Bead, ruggeataA by the lar mkar8, be literally followeA k, acocmpliah this purpose. lo beve before us

### theunpualliled atatemeat that on Qotobes 31, 

### l@S, ewritten blanket asaignreent, covering 

### ammg othsraeoetoandpropertlas, t&e real eetate fnvolv6A In the Inetant inqtiry,, waa Auiy exeouteA

### 499

Eon. GaQ.E. Sh4ppard, peg4 5

by and between the ~arxzcrn Aatitnal Grain Corporation aad tba Sam Credit iidrololstrstlon, purporting to ccnvey said gropcrty, end oonteining rords of grant end ccnveyerce to tbie end, and being in oonnummatlon of sn agreesent a&e on June IS, 1938, between t&eparties to make suck transfer. It is further eteted that the 

### neeanraryapproval of the Secretary of the Tresaury was obtained
on 8ovember 7, 1936. Kot bavia6 e copy of this eesigmaent be

### fore~8, and glring full oredenoe to the aforeaald 

## statements,
we me ippelled to the oonoluslon that not only the equitable, but the legal title es wall, t+ the real estate in 

### question,
wes vested in the United ~tatar, through the ysrm Credit Adminlutratlon, before January 1, 1937, end, consequently, under l Mtte4 prlnoiples of law, was not rubjeet to State andeountp taxetloa **for** the yser 1939.

On**the** other band, we are oonfrontcrd with a statement iron another represeotetlve 

### ofthe United 

### Statesothlrerloe or one of its duly oonstituted inntrumantelltler and a6encier, which presents 8,different aspeat upon the queetion oEthe essot date, with referones to January 1, 1939, that title to this reel entatu **maed from**  **the** bmmers

### Kitlonnl**&in Corporetton**  to the United Statee. This statement is in the ?or?aoi a letter from Bonoreble rC.E. Daly, &rletsnt tc Oenerel Counsel, Bedersl Land Bank o,fBouston, to Elss Jewel Davidson, Aeeeroor-Colleetor, Potter County, oi datd.June 39, 1939, a& we quote the 

### pertinent parts tbenoi es follon8:

*Rerererme fe medeto yourletter8 of b&y88th end June Z4 regarding the traourer 

## orowawahip of oertaln properties ia Potter Countyfrala the Farmers Satloan %rebouse Corporation tomthe United States of +merieu.
-1 have in mypouseeelon a

## d06a executed under date of February 84th. 1939, by tbe Pmeer8 Betloxml ';.erehoase Corporation, conveyin& to theOr&ted Stetelr 02 emsrice the following deroribed propertyt

. . . “This deed has net 84tU4llr been aooeQted, and negotletions are nowpending *hfeb will 

### inall probability result in the seoegtenoe of the da&. Wmn thiu trsnsaotlon **is** txmmua?rrstaQtke **deed** will, of courma, be forwarded to Potter Countg for r40or&ing.~
Should full faith end oredit be eoaorde& to tba foregoing 

### Statammt frort an euthorizsd repreeentatkvs ot the grantee of tbe

### 500

Eou. ho. II. 3bep,-ard, $%!4 6

property here, the ikited States

. 

### ofhmrica, tbmu,yb t2.e ?erk 

### credithdffilnistratlon, men our answer would be dle~etrloally opposite to that heretorare (tlver. It is settled law in Texas that adeed or eny other lnsfru!wmt, purportlng~to oonv4y 

### realty, does not divest title out of t&a grantor and vest 6eEe in the ereritte, until there baa been en setuel eoceptacee of such deed
or other inet~rucrent **by** said grantem. The laws of the State where property ie looeted govern exolueively the oonstruo,t~lon md effect ofall instnmente intended to oorvey it. KeTLoe,if, at tbe writing at t&e above quoted letter, to-wit June 39, 1930, the trenseotlan described herein bad not been consummated by eooeptnnae, either expressly **or** tsrplledly, of thedeed 

### orother lnstrtumnt purportLag to 00~~4~ title to t&Is realty, then title thereto would, cmthet 

### date,~remainin the &rmrs ,*latienel Grain Corporstion, e private corporation, &AdrOllid be aubjeet to Xate and county ad valorem taxes assessed **against saw**  for the year 1937.

se realize that this opinion osnnot Be useful to you until the aonfliatln~ iactual e~atmneuatsppearlng here Is reaolve6 one wry or th4 otber,~ anOto thte enb, we mg$est that you further eevelop the facts fnthe li*t oi the foregoing discussion kod be goveme thereby in yeWilndin$e.
Your* very truly
A'l'%RBEY&i'&WiL **OF**TDAS