### CQPT

oRl%x OTTm ATT9RNEY OZNERAL

OTTNXM w+‘-J



### AUSTIN

Ronorablo W. R. Imy 

## county

Auditor nrrant aouaty 

### PortWorth,Tsus



### Dear811~: OQInIon No. C-1559. Ret Rhsthar or not It Is naoessary to 

### recordliens on motor vshIoles subsequent to the sfiaotlre data or Z!ouSs,BIll No. 407, 46th LegIslaturs. Vfs‘are in reoslpt OSyour letter of Sept*mbsr 9, 1939, in 

### whiohyou requsst an 

### oplnlonot this Department as to whether or not it is nsoessary to raoord liens on motor ro~.Ioles In ths county olark’s 

### officeshoe the passage of, the CrrtIfIoate of Title Act,

vm wlmv&l tn0‘ya?ulywl.+Aa. 4fupvaL UplKw.hfLw or not th8 csstfrioats of Title Act suQanadas or repeals ths gsnsrel rsoordfng statutes as to motor rehlolrs. It Is nscsssary, thsrsrora, 

### toconsiderthe law oonoernlng the raglstratlon of motor tehlclas prior to Ootobsr 1, 1939 and also to oonsldsr ths siiaot of tha pro~lsions of the Cartfiioata of Title Act upon the sesa.

Artlols 8490 of ths Rsrissd Civil Statutes provldss, In part, 

### as r0im8:

*mery ohattel mortgage, dssd OStrust or other ihstrument of writing, intendsd to operate as a 

### mortgage, or lien upon-parsonal props&~, and stary trassrsr thsrsof, whloh shall not be aocompanlsd **by** an Immediats dsllrery aad be Sollowed by an actual end oontlnued ohangs.or possssslon of ths propsrt~ mortgaged pledged, or afrsoted by such tnstrusent, shafl be abaolutaly 

### voidas against the

### Hononblo W.E. Yanoy, Pegs t

orsdltors of the mortgagor 

### or person making sus, as 

### l

galst 

### subssquentpurohassrs and mortgagsos or lisn holdsrs in good 

### raith, unlss~ 

### suohIortrumant,ora 

### trusoopy 

### theraof shall be iorthulth deposited with and f&a 

### Intheoriior0r ths oount~ o&erk or ths oounty whsrr the prop@rty shall then 

### be situated, 

### or Ii the mortgagor or 

### person makIng the samebe a resident of this gtate, then, of the oounty of whloh he shall at that tlma be 

### a realdent; * * * ** Article 5497 of the Revised Civil Statutes reads as r0ii0rrs t

“Chattel mortgages and other instruments intended to operute as mortgages or liens upon personal gropsrty shall not bo reoordrd at length, and all persons shall be thereby 

### charged with notlos thereof, and of the rights of ths mortgages, his assignee or reprrsentatlves thereunder,- Article 5497a of the Revised Civil Statutes raaas as

‘That all chattel mortgage6 hsroartor given as security for money advanced ior Thor purohaso of motor vehioles shall, when regIstersd 

### as roqulred by law OSchattel 

### nortgages, be and are superior to the alain or 0laI~8 Of other OreditOrs even though suoh motor rshlcle or vehicles are daily expo8ad ror sale. Yr0da0a, however, any such chattel mortgage shall be void as to bona tide purchassrs whensuch motor vehioles are dally etpored I

### r0r 8ala.e

A pro or oonstruotlon of the above quoted titioles alsoloses thres ma

sor legal operations of said Laws. **?irst,** ArtIols 5490 makes **unmoordad** chattel mortgages absolutaly void 

### as against subsequent purtbsers and mortgagees or lien holders in gcod faith. This provIslon 

### Is Inherent in our reoording statutes and Is necessary 

### and InQIsgensable Sor a proper operation OSsuoh lawsaHonorable W. R. Yanoy, Pags S

8000na, tha mcoraing statutes quoted operate to 

### giveoonstruotironoticetotheworld of a duly 

### reooraea ohattsl mortgage. 

### It is 

### tobe remembered 

### thatArtlols5497 usesthewords **aand** 

### all **persona** 

### shallbe therrbyohargrd

### with notlorthereat.* Itwouldbe 

### Im.cossible to enumerateall o? theoases a80ia8a by the oourts 

### 0r this state rhioh SOhold. The proposition Is 

### olsarlyl

### tatodIntheoassofNurrayCompany Y. Deal,, 176 8. 1. 718:

*from the time the mortgage Is so depdSItl d for registration, It beoomes aonstructlvs notios of the mortgagees lien.”

et al., See 

### alsothe cases of Thorndale Ueroa’ntlle Company,

v. Continental Gin Company, 217 S. pi. 1069, and the Supreme Court case of Cr.rshearvr Watt, 44 S. W. 67.

The third majOTprlnolple Of law wllloh IS a result 

### 0s our recording statutes Is that the priority 0s liens Is 

### determinedby the date of tlllng for **reoord** of.such liens. **AS** a general 

### rulathe one first riled ror reoord 

### takespriorlty over those later rii0a. See Smelser Y. Baker 99 S. ?i. 377; Third 

### NationalBank of 

### Springfield Massaohusetts, et al Y. National Bank or Comeroe, ot al., 159 S. Vi. 668; J. AZ. Radford 

### GrooeryConpany V#Pace, et al., 172 S. Ti. 146; Dallas County State BankV. CrIsison, et al., 231 8. W. 857; Ridgill v. 3, L. Wilson RardwaTs Company, 

### et al,, 178.5. Vi. 068; Moors v. First State Bank of LIvingston, 127 8. R. (2d) 536.

House Bill No. 407, Acts of the 46th Legislature went into effeot on.Ootobrr 1, 1959 , It is the opinion 0s hi* Department that It Is nowunneoessary to record, liens against motor vehLole8 In the county 

### clerks*ofrloes. This conclusion Is ba8.a upon thrss reasons.

First, Hours El11 Ro. 407 Is a newenaotment dealing 

### specIfIoallywith motor vehicles and oonoerns the same general 

### subjectas the general recording statutes. There can be no question but that the recording statutes and IJouse Bill No. 407 ars’both designed to protect the Innooent purchaser and the lien holdsr

. Housa Bill No. 407 was passed beoause the Legislature found thst 

### thegeneral reoordlng statutes aid not offer surrioient proteotion In the cases of motor vehloles. That this is trus maybe seen from Seotlon 1 of House Bill No. 407:

*Tlii8 Aot shall be referred to cited and knownas ths *certItIoate or Tftle AC bIionorablr 1. t. Tansy, Fags 4



### and In thaenaotaenthsrrof it 

### Ishersbt asolaroa **to** be the lsgIslatIve lntsnt and 

### p Pliooolic~or this

### state **to** 

### losrm and p&vent th th **rt or**  

### motorvahlslas, 

### arid the 

### i8porctIoi Into this State~of and traSrIo In rtolon 

### sotorvshi6188, and ths

lootlvely, are to be lIboral1y oonstrued to that end. The following tens as herein defined shall oontrol In the enforcement and oonstruotion 0s this hot." That the Lcgl~slature considered the present law Inadequate to prevent the thing set out In Ssotion 1 of the Aot Is further emphasised by thn eaergency clause of Bouss Bill No. 407,which 

### reads as follows, in 

### parts

** * l * and that many 11s~ have beon craatsd against plotor vehIolu to the serious tinanolal loss OSa large number of persons, and the fact 

### thatan early adogtlon of this Aot will operat3 to materially 

### safeguard dealing In motor vehicles and using the sams as security * *-* *O 5vIng seen tae LegIslature~r tindine that the present rioording statutes 

### arsInadequate as protection In 

### the oases of motor vehlales, ths nest ooasldaratlon $8 whether or not ths Legislature can rspeal or suaprnd tha operations of the general reoordlng statutes as to motor vehloles by suoh an l naotnent 

### as House Bill No. 407without 8peoIiICally 

### stating that the aam are su8penara. In this oonneotlon a number of rules of statutory 

### ooostruotIonareImportant,

The queatlon of repeal, on8 of legIelatIve Intsnt. whether express 

### orImplied, Is See Rogers Y. w&ous, 8 Tex. 6s; St. Louis 5. K. Railway CompanyY, Kay, 

### et al., 65 Tex. 558; ?irst Ndtlonal Rank

### vaLe8 County Cotton Oil Cornpaw, 274 S. F. 127; Berry 

### Y. State, lb6 9. W. 626; State y. Texas and 

### N. 0. R. Company, 126 S. Vi, 65; Fortinberry Y. Statr, 48 S. Oy.(M) 146.

### EonorableVi.Ii. Tanor,Paga5

seai0n 

### 66 0s Houss :

### IllNo.409isageneral mpealin olaurr whioh **roads** a8 roilowsr

*All 

### aotsor **parts** 

### of l 

### ots Iason8,irtsat withtheprovIsIvnsof fhir Aot 

### are hereby rapsalsbs Auensral repealing olauss Is dfsotlrs to repsal prior enaotmahts to the extent that thsy ars lnoonslstent dth, or repugnant to 

### ths terms 

### or the laterstatutr, 

### ThsSupremo Court of Texas tn an op’lnlon wrlttsn by fudge 

### Gains8Inths case of Caddls, et 

### al.Y’. Terrall, LandCommlssloner, 1109. vi. f~~io~~canstruIng a general repnaling clause which reads as

“All laws and pa-rts of laws 

### Inoonillot with the provIsIons of this Aot are hereby repealed .s had this to say about the proposition:

*It Is’clear that there Is no express rspeal; that Is, the provisIon In 

### question Is not directly repealed, i!ointed out as expressly

But 8 no8 the affect ot a ganera1 provIslon repealing oontlIcting 

### laws evinces that the Legislature **had** In mind that something was to **be** repealed, ths courts will **be** leas inallnsd 

### againstreoo& airing rspugnanoy In ap.plyIng suoh a 8tatutr.Y The language above quoted was also quoted In the case of J~bnson Y, Jo&son, 

### 55S. W. (Rd) 15.3.

Thera is another rulr of stututory 

### conetrwtlon whioh is dlreotly apQlIoable to the case at hand. Whers it Is.apparent that a statute 

### Isbntendsd 

### toombraoe all the law upon the subject tilth whloh It deals It supersedes all iOmeT laws relating to the 8ame subjeot. Thfs rule of construotlon 

### was Invokedbr the Comlssion of Appeals of Texas in the case of First National Bankve Lee County Cotton Oil Company, supra, 

### Ina easewhIohwa8 In manyrespeots analogous to our present sItuatIonr That oass construed Artlole 579 of the Revised C1?11 **Statutes** of 1911 which provided a means of fixing lIabllIty of drawers and endorsers of bill of exohange othb than by protest and notics. The court held that the uniform negotiable instrument act of 1910 repealed ArticleHonorable 'II. P. Yanoy, Page 8

579 bsoaure the later 8Ot tmat84 of the 8aBo 8Ubj8ot matter a8 th8 fOZS8re Th8 uniform aegot1ablo inrtrumtnt aot oontaln8d 'a g-mm1 rspaalfng alatur whlohaa8 exactly idantioal with th8 @n8Ed r8QO411ly OhU88 iIl ROU88 Bill NO. 409e Th8 COUrt qUOt8d irOB the ea88 Of St. hi18 8. \5. mi1-J’ ““““~TV~8Ka’, .et 810, 8Upr8, in an Opinion 

### WittOIlby tUdg8 0dbS8. language m8 a qUOt&iOil i?Dlp th8 Oa8. Ofmg8l'8 1. WatTOur, 8UpIT4, in Which ths sUpre88 GOtUtOfTaXa ip88kily thrWgh Judg8 WhMi8P, 8aid 118 rOiiOW8:

'A 8ub88qUOnt 8tatUtO HV181~ th8 8ubject mettAr of a former on8, and evidsntly lntsnded a8 a 8ubstituts tor it, although it ~0~1tam n0 expr486 **WONTS** to that **dreot,** nurt opsr ta to repeal the formsr to ths 8xtent to w'~ioh it8 ?rov181On8 9~3:revlred and su~plement8d. So thcugh a aubeequent 8tatutr be not re>ugmnt ln its provision to 

### a for18sr one, 

### yetit it was clearly intsnd8d to prsrcribs the only rule whioh should govern, it rsjmal8d the prior statute** The

### Courtin the Firat National Bankoaso al80 quoted frtm the language of the case of Stuts v. Howton oil COlUU1881On 0r ~02a8, 194, s. 8. 4321

“The rule 18well 8Ctthd that, wh8n8 8Ub88qUsht statute 8hOw8by it8 OOuteXt that it wa8 intended to eimbraoeall the law upon tha rubJ8ot dealt with, 8uOh8tatUta will, by irpllo+tlon, ~881 all rormrr lawn N**lettIlt** to the 8-0 8ubjeOt. The OOrrsOtM88 Oi that rub 18 not contrarerted, and it 18 UQneOeB8ary to Cite authWitie8 in 8UppOrt or it,- The Roger8 and the St. Louis Railway 011808word both aited and followed in the ca88 of Stats V. Tesa8 &N. 0. R. Company, wra e

TheS?;prems Court Of Tesa8 first rxprs88ed 1t88lf 

### on ttir mattsr in 1049 in the oa8e of Bryan v. Sunberg In an opinion written bg Judge :;heslsr. Ths Court said a8 follows;

-But when the new8tatUtO ifI it8eli OOm-. prehend8 the entire 8ubjeot and orsater a n8w, entlro, and independ8nt eystua re8peOting th8 aubjsot matter, it ir UniVsrMlly held to r8- pot&land 8UjJ8r8ed8dall plWiOU8 8ybta8 andHonorable H. E. Yancy, Pagr 7

law8 r88pecting thr ram88UbjrCt Mtt8E." It ir the opinion of thlr DepaABent that; a8 to mOtOrVCSh101t38,

th8 **irgi8htUre** ha8 nDx‘

### 88t **Up** a new 8y8t8m OSlaw for the proteotion oi innooent pUrOha88r8and lirn holderr. 

### TlAi8

8Jlt8m i8 80 C?OrPpletO in it8elf n8 t0 8UpOr88d8 the operation8 of the general recording **8tBtUt88** U8 to motor V8k~10108.



### In theSedond place it I8 the opinion ot thi8 Department that 

### tiou8aBill No. tO7 repeal8 the operation or th8 genema moording etatutas a8 tc mctor vsl:Iclee because it oontllct8 with them.

Pihere there 

### 18a 'general statute in foroe and'then a speolilc atatute is peased, both statutes rsmaln in foroe excf?pt that the seoond 8upW8edeI3 the first a8 to the 8ubject 'matter contained In said special 8t3tUte. Fortinberzy v. State, mpra, and Towsend I. Terrell, 16 S. W. 1063, An examlnetlon of the pertinent provl8ion8 of HoUSeill1 No. 401 lead8 one to the inevitable conclurion th..t said Act 18 in coniliot with th8 general recording at tUt88 a8 t0 motor vehicles. This mayb8 clearly been from an examination of the effect oi Hou8e Bill Ho. 407 upon the three major legal meulta oi the general recordln atatutea as 8et out previouely in thl8 opinion:

In the flret place under the general reaording statute8 nt lien ia valid against a rubsequent purobe8er and mortg&e8 

### or lien holder In good ialtb 

### Wiles8the 83~13is recorded. Hou8a Bill X0, 407 contains ihe iollowingprovl8lon8 concerning the validity of llenr:

*sec..41. No lien shall be valid on any motor vehicle wi.lch 18 hersatter th8 rrubject of 8 firet sale, or be enforceabl8 against any such motor vetiol~ UnlO88there is noted on the importer's or manufacturer*s oertlfloate the d&t>;, n3me, and a&rose of' the mortgagees who8e rights arise out of or are 

### incidentto suah ff.r8t sale by rG38vn of the exrcutlon of an., wrlttarr instrument by the tran8fere8. Qeo. 42. No lien on any motor VhhiCla shnll be valid as adalnat t&@&part188 without aotual ktlowledge thereof or eniOrCeabl8Honorabla 

### w.**t.** Yanoy, Page 8

a&art the motor vahIola of any 8uch third pert148 a8 th8 i88UanOs Of a QaCtlfloata OStitle th8raof, unlasa an applloatlon for a newtltla I8 mad 8crlbad ln thi8 Act and all fir x '::d*;$&,w .," quant llanr noted by thi8 Dapnrtmanttharaon~ 'Sa0. 44. Nollan on any rpotor vahloti to wkloh a raoaipt or cartitioata of tit18 has been i88U4d ehall be salld 8s aginrt third part108 without actual knowledge thar8- of, or anforcsablr egalnst the motor vahiola of any such third Farties, unlaas the notation of said lien 8hfill Lave bean caused to be made VAreceipt8 an6 cartlflCete8 Oftitle sn said motor var.icla, as 2povldad in.thi8 hot* "Sac* 46. 

### iIn13

liens noted on a racolpt or certificate of title shall be velld as ageln8t creditors of the mortgagor in so far a8 concerns the motor vahlcla,W Tba affect of the84 s4Ct.i.A8 18thbt if the lien8 are not recorded on the cartifioata Oftitle the same are not valid da8:jita the faot that they msybo recorded in the county Clerk’8 OfiiO8. Also, under Section 46, if tha lien le,notad on the cartiflcatd of title, said llan la valid despite the fact that the 8eim.mfq not be racordad.in:.tha county olark*s offloe. 30 the law 18nowthat the raoordatlon of alien la immaterial to it8 valldlty. Suoh validity depends entirely uc: on whether 

### the 88ma 18

### properly nqted upon the OertIfIoata of itla. In th18 raspaot, 

### Licusa

Bill No. 407 end the general racordlng 8tatutar 

### ar-: entirely in oonflI0t~

Secondly, under thp general 

### raoordlngrtatutes the recording of a chattel mOrtgsg* 

### in the county 019rk's offioa constftutas constructive notlca to the public. The operation of this law 1s com;.Jately done awaywith,'by SaOtiOn8 33 and 51 of Hvusa Bill Ko. 401 w:~lahread as followlrr

%380. 33. Nomotor vM.lcle msy be diOpo8ad of 

### at rubrraquant sale UAl48s the owner dasl(;netad iA the cartlfloata OS title shall tr:.nsfer the cartlfloata of title on form to be pr.8oribad by the Dapsrtmont before a Notary i-ublla, whlohHonorable w. E. Tanor, Pa50 9



### fo rm l hall'lnol~de, amon l uoh other mtterr a8 

### the D0p,eeent maydetermine, en 

### eftidevlt to the erieat that 

### tha 

### l lgner ie thr omrr of the motor vehlole, and that there are no 110ne a&abet l uoh motor vehlel0 exoopt ruoh 

### a8are ehown on the 00rtirf08t0 of title and no title to any motor vrhiolo l hall pare or vest until l

uch trenrfor be so ex0outed. "860. 61. It 8Mll hersaftrr be unlawful ror any perron; qlther by hiae0lr or through any agent, to offer for ealr or to sell or ~tooffer as l 0our1ty for any obllgatlon any mctoz i&i010 regietsred or licensed In thI8 State without then and there having In hi8 po8aeaeion tha proper raoelpt or osrtitIcets of title ooverlng the motor .*ehIclo 80 ~ffsred.~ It mayaleo bs pointed out that. the oaptlon of Hour0 Bill No. 4O7contains the following; language:

-ProvIdi 7 thet ruch'oertiiiiate shall conetftut0 not 00 of ruch llene and mortgagee, and prescribing the priorltles OS liens and mort*508 as againat all partIe8.a Furthormor0 olerk'r orflae 

### sitar 6 lien8 which are r0oorded In ths oounty otober lrt cannot 8orv0 a8 oonetruatlvr not100 becauer oi Sootlone 48 and 44 of raid Aot, above quoted, ubloh etate that eald lien8 are not valid unleea noted on tho ee.rtIfIoate 

### of title. earn es notlo,. So IS raid 110~ at0 not valid they oannot In thI8 rslpeot the 50n0ral recording 

### etatutes 

### are in oonfliot with Houee :I11 No, 4O7.

Thr Third legal reaillt or the gsnsral reoordlng rtatutes, the ertsbllshmsnt of priority of llane, has bean sntlrrly supareedrd by House Bill No, 407 a8 to motor vshIole8. Under the general reoordlng 8tatut.w the priority o? 110~ I8 

### determinw Q..,tha data thoes liens wars fIlsd,for rsoordation In thr obmty olnrk'r ofilcs. Seotion 45 of Hours Bill No, 407 raedr ae iollow0r *All lien8 on motor VrS.ioler shall take

prloritr according to the or&r of tls0 th0 sameare recorded on the reoelpt or oertifloeto of tit10 of all ruoh r0oordlnge toHonorable v. 5. Yanoy, Page 10

bemadeby the Departaant.* 80 we rind the lm nowthat the prlorlty of lien. In dateraina(; by the 

### order of the tiaa the 8emaera reoordad ontha.raoaipt 

### o?oartifloataoftltla. Ofnaoa8eltythin deetroy thi priority 88 rat up by the goner.1 raoordlng ltatutee



### 88to 

### rotorvehlola8~

It 18 our opinion therefore, that 

### theprovlalon8 o? xouea BIll~No. 4Q7&ra 4fraOtly in oonfllot with the ganera1 reoordingsetatutae 

### l nd.aato motor vahicla8 must o? neosealty euper8a6e auoh Caneral recordIn law8.

It in the opinion of ttlr Department that it will not be naoaeaary to raoord a lien on a motor vat;lcla In the county clerk*8 0rrl00 artar the affeotlva data 

### 0r xouea 

### Bill No. 407 for the third reason that the operation OSHouse Bill Noa 407 suepande the U8.fUln.88 

### ofthe 

### ganaralreoordltq law8 because 

### ofthe term In Article 6490 "In good 

### faith.* The COUX't# here oonetruad ttle term in menycarea and have held thet certain 

### f&Ot#Pay .Xi#t which make a 8Ub8.qU.at pUr0h.a.r or . rubs.- quent lien holder not one in good faith. A very good statement en to whet Is meant 

### by the term "good faith" a. urad in the racording atetutaa wee made bjr the court in the ceaa of Burlington State Bank, at al,, v. Marlin National Benk, et .I., 166 8. W. 

### 499: .

*The exprareIon *good Salthe emwed ,ln the statute providing that a ahattel mortgagn ehall oeaaa to be valid a5eIn.t 

### ,tha oredltore oi 

### the pereon 

### makingthe 811118 or uortg5.88 

### in good faith e?ter the arplratlon of one yasr rrou iillng the nameunlearnen l

r?ldevlt of reneral In fIlad,~~la 

### l

ynonymouawith ~ooa8olenoa~, It ambfaeae thoea oblI5etlone which are Impoeed u?on one 

### in dealing with property by the cIrcumetanoa8 eurroundlng It at tha tine* WAwant of that oautlon and dlll5enoa w!.loh an ordinary manop.ordlne~ prudsnoa In aoouetoaad to axarclae In meklng guroherar 18, in judslqent of law; a want 

### or goodfaith." See al80 South Tax.8 Emplamantk M.OLfn.ry Co., et al.Honorable W. l5. Yencr, R&a 11

.~

v. Aeahuao Gene1 Co., t69 8. w..lO97, arrInad by the Comnlealon 

### orAppule in UO 9. Vi. beli Tlrrt Ilational. Bankof 

### Stevenvilla v. Tho~peoe, at el., 888 S. W. 0S4,



### VndarHour6 El11 Ho, 407 before l 

### motorvahIolemay be 

### offeredfor 

### ula o? offered for l aourlty,

the owner of the 

### mamarunt 

### obtaina oartlfioateof title. 

### Tootany lien to be 

### valid and prior to 

### a eubeaquant lientheeamawould 

### have to be notadon raidoartlfloata of title. 

### Letue 8uppoea l l ltuetlon where e 

### parbon Wieha8 to puroha86 e ubad aer from another o? rimhem **to** take 8 lien eelnat bald oar* In oaaa 0s 8 purohaea it would bs 

### naoeeeary ror l trenefar 

### 0r maid oartIflcata or tIClo to 

### bemador In 

### a oaaa where ha wI8haa to obtain a 

### lienupon said oar, aald lien would have to be no.ted on the oartIfIoata of tltla end ha would have the opportunity to axamIneth:! 

### mamato 

### meaIf there ware any prior llenr noted thereon. Haknowe thzlt a lien not noted thereon 18 not valid a8 a&net him. Suppoae, however, there axIete a valid lien against the oar and the mama In noted on bald oertIfIoata of title but 

### hemnot bean racordad. In the flret plaoe thin oartlflcata of title would be construotlva ~notIoe to & auoh a8 to keep himfrou being e 8ub8equant mortmagmaIn &ad fait:! un-ZarXrtlola 5490. In the l aoond place, even If It oould **be** meld thnt the oertIfloate of title war not oonetructlva notice to him. still tha oeaas would indicate that ha oartalnly, could not be a &ood faith purchaser or mort~agea having had opportunity to aremIne raid certIflcate of title wl.loh would 

### oomain him po88aeeIon. Bythis line of raeeonin& wereach the oonclurlon that lf a lien Is cot noted onthe oertl

### floetaor title it cannot be 8-t upagainst aUb8~iqUantpurchaear or nort~aagae. If raid lien 18 noted on the oertlflcate OStitle 'than there oonld 

### be no **good** faith ~uroharar under Artiola 5490. In this we7 the 

### entireaffaot and operation of the reoordlng 

### atatutaa a8 

### to motor vahicle8 ia oblltaratad~

For the raaeon8 di8ou88ad in amwar to your firet inquiry, it in the opinion of ttia Department that it i8 uenacee8ary 

### fora lien to be recorded In the offloe 

### oftile oounty' 

### olark. Nothing In thla opleio~, however, rhould be taken to meanthat llane oreetad and fIlad 

### forrecords prior to Ootober 1, 1939, are not valid. The oonnlualon ire have raaohad in construing 

### ourTexas l totutea In l

Imllar to the oonoluelon reeohad 

### by the oourte 

### of ‘ other 

### etateein oonatrulng their Certiflcata OfTitle Acta, The following quotation by the Supreme Court of Appeal8 of Vlrglnie In ths oaaa of C. I. T. Corporation v. Quy, et al., 195 9. IL 659,Honorable W. I. YAMr, Page 16



### ladlraotlyinpoints

“In l 

### ddltltin

tothel

tatutee

noted 

### theMotor 

### VahIolaCoda 

### ofVlr&ia alro doe18withthle8ubJeot. AOtb 

### 19SS 0. Sit,pa 61Sihot8 1934,o+868,p* 580, Within it8 dafInltlon, a oonditlonel eel8 18en l

nouabrenoe. Pladmont ato., Corp. v. Com!nonwaalth, 146 Ve. 2&; 

### 135 8. r. 678, Re~IetretIon card8 end oartlfloatae of title era 

### leruadby the Dlvlelon of Motor VehIclae. They andthe llene theraon appearlag are aurrloIant notice to oradl

### toreend ~urchaeere and **do** not herb to be recorded locally,* The Faderal DI8trIot Court, Eartarn 

### DletrIct,PennaylvenIe, in the oaea o? In ra Tall 16Fad. 

### Supp.987, held the Penneylvenia CartifIcate of Tltfa Aot to be a recording 8tatutar Sea elao the canes of Tnfleld v. Butler, at al., 264 N. PI. 546, S~~prama Court of Iowe, and Mrylend Credit Finance Corporation v. Frenkltn Credit FIneno Corporation, at al,, 180 8. B. 408, Supreme Court of Appaalr of Virginia.

Xhlla it 

### 18the opinion 

### 0s thin Department that It 

### 18unneoa8eary to 

### record ohettal aort~agee on motor vahlolae 

### In thawoountr olerk’e office, In all 

### probability many pareone whotake aortggae againat motor vshlolae wilLuleh 

### to reoord their 116M in the OOuntyalark~8 Off106 

### an a eat&r Of praoau

### tlon. TO18will probably be true until the oourta of thla State daolda whether or not 8UOhraoordatlon 

### 18 na~eaeary. In mucha oaaa you 

### eraadvlaed thqt the oounty clerk 8houl. record the 

### mortgsga wall em1 en hen bean haratOfor6 done, and the 8ameoherge a8

he mamal

teuuptax 8,hould be a880880d againat the party wiehlng e mortgage racordad~ Yours .vaty truly ATWBNXI 0BRER.GOFTBUS ASWiOVED



### NOVEMBER7, 19S9 

### (a)OereldC.Menn ATTORNEYO:~ERbU

### OFTKUS BY Ba:R8:lw (a) Billy Goldberg 

### A.#i#tMt APROVEDOPINIONCOW ’ITTISE RY (8) B. W.‘B., CHAIF@IAX