OFFICE OF THE ATTORNEY GENERAL OF TEiAS 

AUSTIN 

ifonorble ical h 1. l3ud.l 

Chiet of Cert ‘p flaate OS Title Dlvlubn 

Dqsartmt of Publia Gaf’ety 

cwip %abry .T’. , ‘\ 

NlMAll, TWA8 

h6r six: 

rtwnt krur CIrElfla*te 

on by the t&et li&n 

eation IB aoo~aaled by 

rtt wrtLfyln& that tw 

II ha* bwa regomesae4 aoo? the eoatraot betwea 

e ~mrtt(DItjpr even thorrs,h 

than be a awend lbm agaiu&8 & vshitis. 

*((L) Gkould the Deparoleent rcrwlre a reAewe algned by the reeoa& l&err Bsldw, er ir 

th6 tmidavic of r6powei0omi oertitxra to by 

tb first 116s holder SutiicrZIJIc avldonw to 

jurtify the 18*utanoe of t&6 Pitls. 
857 

“(b) ibat lnlorrnation ahould thlsis De- 

&ksrt&?ult re;ruirr under 8UOh a sltution 

before we imy fsrrue a Certtfioate~o~ Title 

to the holder of the oar under reportmxslon.w 

In your firet queutlon you rap0 ooaoerned with 

the type of infor~tlon whioh should be reqzlred by your 

Dopartnmnt rmrn a applleant who hae puroheamd a motor vehlole at t3 judicial foreclosure sale barore you issw a 

aertlrieate in the nase or said puraheser. Tour attmtlon 

fa oellad to hotion 33 of the CertLt1oet.t of Tlt;lo &et 

whiah has been lnoorporated Into Vornon*s Xwototed Penal 

Code a8 irtlole 14364.. 

"sec. a&i. #'henever the ovmsrahip ot 

a mtor vohlale rogllrtersd or lloeased withln this State ie transferred by operation 

of law, as upon inhsrftaace, dalee or bequest, hankruptep, rsoslv8rahlp jtadlciail 

sale, or ally othw lavoluntary &mlzu 

0r ouwrahlp, the Departaeat shku tiarrua a 

new oertlriovlte of title upon being provided 

rrlth certltied wpy or the probate pr0043eainge, if say (U a0 adminlrtratlola ia neuwafmry, than upan arribilrlt shssiag au& 

fuot and all of the heirs rt lau and rpeolflo&lon by the heir8 as to la whoas nam 

the oertltlaate shall iabuaf, or order, or 

bill of aale fraiz the ofiloer rmakln& the 

judlcli~l sale, exoept hmeiver, that where 

foraalomre lo had uader tbr term of a 

Slen, the attidavlt ot the gemon, flna, 

aszsoaletlon, or oorparatics or authorl%ed 

aGent, of the fact of reyosaeeslon enb 

dlvestlturo of tltle in awordume withthe 

terrs of the lien, shall be auitlaiegt to 

authorize the lseuanue OS a new cerki.U.eate 

or title in the ntune of the puraherer at 

suoh eale, cind sxoept further that in the 

oaas 0r the foreclosure of any Canetltutlonal 

or Statutory lima, tha aifldavit OS the 

holder or YUO~ Uen, or it a crorporation, 

its *tint, oif the act 0t tbc tmatLoa 0r 

ouch lien :m& ths dlveotltura at title by 

matson these& 5.n eccordanaa with law, .~hsll 

be etU'ficlsnt to authorize thn lasurrnce of a 

new osrtlfioats of title U the ~~JISU ef the 

purohaaer." 
In the above QUO ted ertfoin ths Luglnlatum hu 

ryeai?loallg provfded thet your Department q iesae e 

Cartlflicate OS Title In the 0-e OS the purohfieer at Y 

judicial forealoare sale uipon ~esentutlon or the bU+l 

of sale from the of?laormklngtht4 judlclfil 8ale. 

In this amneotlcua you am alno advired thet the 

purchiielrr at th Soreclomure sala, it suoh foreolcrure wan 

o? the ilrst and prior lien a&abut aaid Inrtorvehlole, 

taken title to the ame free of all aubaoqurnt liem whloh 

previouely existed prior to said sale egafxut said motor 

vehlole. That a foreeloaure sale bee euoh stfwt la the 

well e8tabllehe4 rule o? law of the eourta of this State. 

The Ccm-i.~loa of kppea1.s in the ease o? Sabine Uotor Comp&uy v. $. c. zugilrh rut0 wrb#euy; 291 3.g. 1086, etated 

as P0llowa: 

0* I I St goes without stqlng thrt a 

woper aotion in oourt cuts 0rr*tp,,~ftit3 or 

the sxmtgagar or hla ass&w. 

In answer to your flxist question, therefore, you 

are eclrfeed that when the bill Cat rala of the offinir r&Uin& the motor vehiole rt the foreolomre 061s irr ?unsLshed 

your Department as regulnd b$ Beetian 35 of the Certiiloate 

of Title irct you are alrtborised to ieaue a Certi?laata o? 

Title ln the narPr o? the purehanr at the ?oreo&mtg& sale 

without noting thereon any of'the Uene wbiahwcrs eeoord 

to the lie,n whlah me ?oreolo6ed iat ha ootut aotloa 

In your mooad question pu are oenoenmd with a 

situation where the'mortg8&ee reposoe6m~s Q oar under tlia 

8x~eias temfs or the mmtgage vilthmt reoouTam to’ jgd~oial 

prosedun. In euah a sltwtlon ~0'0~ are uaeuthorlued to 

leaue u new Certif'ioarte otTitle in the bdl~ul af the nkoptgag- beoalue mid mortgage by sare repoastssioz~ o? fbr 

motor vehlole doea not auguire title to the sanm. It Ii a 

,~ll eettled luw of thi8 Stat8 that prior to mpo5ses810n 

the mortmgoor has title to the sortmed property. As stated 

by the Corrpnfealon of ~~pepla irr the OZISO of Gablncs Wtos Colapany .v. ;i’.c. fin&s& kuto Cemmny, augra, 

*In Texas, the la@ title to mxtgqed 

property rwdw In the mart&a&ax.* 

St i8 also u well aettlod rule of lo* inthLrs St&e that 

wheathe mrtga2ee re~aseaeee @opmrfy he bolde the Babe be 

mortgagee and Pot (~a ounef. The @t&prei~ Court 3.8~ Terraa in 
859 

the caee of Barling Y. Creaoh, al S.S. 337, stated as follovte :

n* t . ohs lnstrunante being ahattel 

xartgaam, t’he vendor had the rights of a 

~~~@gtte under a ahsttel ~rort&age oontalnin& the stlpulatlons or right to take POfBSe8- 

slon, uhloh would ba to take powss88ton of 

the proyerty it he da&aid hlmself insecure, 

or the debt aot being paid, and to hold or 

dlspose of the proserty La the aharaoter of 

aortg4sDPgoe. ulld sot k&s ovaer. * * +* (mldersooringi oura. I 

The lan&iage of the Eiarling aam, aupra, wee aogied 

intc~ the opinion OP the Su~eae court of the &ate ot Texa6 

ia the ease or sin&m ivg. co. '1. Rio%, 71 S&G. 275. 

Thla lina 0r authority was reaiflrrtsd by tha COJIU&+ 

don of ~ppeale in the Sablna w&or Comar~r ease, eupra, aoL 

the Court atate& UI) followa: 

*+ * * But, Eden titer saoh e ~rnkmre~ 

it would have beon neoesecuy to handle ~tbb 

onra 88 nrortgagees and 8Qt a6 QvJmFS, until 

the title h&d passedd, either under ~?meolooure 

or in aooord with the parer of aale ooatained~. 

in the awrtgage. * * ** 

T&m above Gtwted rule wa6 amI.8 aaaouneed inthe on80 0r 

-;&da t. Bowera, e;L S.W. (2-d) 590. The Court stated ae rob 

.* 

“A mortgagee la not satitZsd to aat a8 

the om8r of propcrrty In Its di*imsltiaa, 

but must aat aaoarding to tb parer0 given 

in the siartgeae. * * * aI& tb asart*gee 

baa 110 right to take ;looeeraloa of tha gmopertp na hla OWIZ and ~pgraprlrrte it.” 

On Ghe other hand, tha Court8 at this State have 

long rsoognlsed rhe foreolosure OS ii lien by repossession 

and sale aab private sale under the t ema of the aortgmget 

Chief Jwtioe &inoe In the Singer IQcg. Co, aaee, suwa, rtatea as rollaws, ln this oonnsation: 

“ee are or the epialar that c ha qtmsticm 
860 

should be aaswred la the aftirmtlva. Clearly, unless the sti$u&tIon la t&e mrtgotga, 

whloh surparted ta give to appellantthe right 

to take poevewloa of the aerring Ipaohine upon 

default or piryaent be h8lQ cf m &feat, U..to 

agent oomitted ao won& by u pmoeable seicare 

zzb;h8 proparty ror the4 pumas0 of payiag the 

. ‘ii38 0tipdati04i fo v8ua tw8r8 it ti 

oontrpry to pub110 polloy. ’ l * Tin progoeItIoa that auch a otiyuLation la vdia, 

and that th martguges mag take peaceable possession of the grope&J wit bout the ooaneat, 

and even cmerthe~ prote8t, of the amtgtagor, 

la staotainad by the great weight of authority. 

* * am 

In thn above guotcrd oa8e, the Su~~em Court was urrlrming a 

aIm&u holding 0r aaid court In the oaam or lit~llng I. 

Cfeeoh, oupra. 

The Tetrakmia Court of Oiril Appea]r reatilraed 

the ValIAIty of maah B g~~vlsioa Ia a mortgage 1nthe aase 

0r Jetme Frsnoh Mniw k Grgn Co. v. Zlli~tt, 166 a.%. 20. 

The Court state6 ae follo*e: 

“3~ th4 teras 0r tha mortgage omexi8g 

the titan pianos, Elliott was authexiEe-4 te 

take poonesnloa thereof *uhwevex thy may 

or t%m be round, and uell the name at pxfvate 

or pub&lo aale to the hi&ant bidder,’ In t&o 

event ti5s Eopkiae rra6e default in tha pay- 

--meat or the debt it wuured, or in the avant, 

at any time beiare the ladobtadnes8 mtare&, 

zlllott *reit urisare or %numare.* It I8 

The above quot.4 rule wud aSfrhwd by ths i3oaumant Court ai 

civil ~ppalsr in the OLIBB or Iuncik vutor co. t. uelia, 847 

ki.*J;. aa. In thI3 aonaeotloa, tha Court state8 ae follow*: 

The trial. aoun erred la hi6 ooltstxua- 
tioa or tka mortga&e. The jWovlsIon& of 

the mortgage authorleln~ agpsllaatto seize 

MA WU ths truak at grlvate sale and wlthout noties are mtvIolatlve of any At&tUt@ 

of this state, nor against the pdalla polisy 

oi this state, es expretwed In the, deaI~Ion~ 

of our ooilrte. It Is aald in Al C.J. 706: 

?lThs inortgage ltseli may diepease with 

notloo, as whom it prwldss thet the mortgagee may 8d.l et private sole.* 

"Ths rule 18 anaouaasd as tollaus, In 

Jaw 011 Chattel AWrtgages (6th &id*) 0 792: 

'?'fi e paver or sele doer llot req.alrs 

the gfvlng et any notiae oi the sale, the 

rrort&agee aun tmdcs a valid sale either at 

public or private snle, and need not &ire 

i3ny noti 0r it un.ha b O~OOW 89 t0 Q. 

&at OsTerthslrss ths s$l,d,,t,o bs bInding, 

avmt be a fair one.* 

The ralldlty of such a provlalon in a wtms 

wns also reafflnwl la th6 oy8es OS Piduty ilnlon Fire 

Iwtua~oe co. 0. 35116w-sattexrleld co., 10 S.w. (34) 163, 

Court or Civil kppsals of Texas, kaarillo, ad the ease of 

CaSpb8ll v. aistexn See6 di Oral8 Ccuupnn yr 109 S&i. (24) 

997, court 0r Civil dppcrsla or nwiw. a8 imtoalo. 

You em (11~0 a4vIsecL that unksss tha tsms or ths 

mortgage expressly prwlds far the earn, it ie aot aeoessary 

for nation to be glveu to seoond or subsequent lfen holders 

egfnst the 8ami prop8rty in a ouee of rorealtrsure by ths 

prior lien holdor at a private asis under the terms of ths 

mort@prge. See Campbell v. &stem %ed & oraln Coppcoy, 

supa, and X4mpehire v. Greffes, 143 G.B. 147, SUwem Court 

er Texas. 

It may be a&ad t&e& ssottio 38 of the Certltisato 

0r Title hot rNwgnIeestkrs *auuty 02 8 roroawbuxe by 0 

mortgagee by pxlvats sale w&&r the terms of ths arrrtgiags 

and Inthla sonnsatlon pmvidee as follows: 

N4 * * that where foreoloaws ls had 

uader the texts or a lken, ths aitkdavlt 02 

that permn, firm, assoolWlon, Qp arperatlea 
or 4utbmlzed agsnt, vi t&s f&at vi r4pv6- 

666SiVtI and diV46titlll.6 Of title in 86vOrdMO4 with tht t6l7ilSVft&# UM&, 6hal1b6 

&uiiiCi8ltto t!iUthOri60 the i86U6666 Of a 

%WW 06rtiiht6 Of titb a tbs nUW5 Or the 

~UW&666X &it 6UCh 8d10, ' * *" 

YOU -0, thFdOr6, 6dVi66d that th4 abVV6 QUf3t.d 

&fit016 r6QUlte6 M atti&'it irOP th4 XiWt@&66 I#hVMD& 

the 6ti6 tUld6r the t6rPU Or th6, &QFt&+gS to 6 third party 

WhG iS &pjdying for & C6rtiflvat6 Of Tit16 iIl hi6 -PI. 

YGU 63-6 rlU%hW 6dVi66d that tk0 fhBrt6Mt -6% rtot t6QUir6 

e re&as6 rigzled by the 6666n6 Ii66 hold6r olluie the s6aond 

1%6n hQld6r'8 liell 4&lill6t t&6 m%vr V6hi616 uUd6r th6 OOIIstruotion of th6 Court8 of tbia Statcr hao b66nout oft by 

the prfVltat6 fOF6Q~OSlUZ6616. b6 @*rfoU6l~ 6trt4dl th6 

CQlWt6 b&N6 h6ld that the ~~6ba66r at a judiOf& foS66~UE6 

66&S aaqulrsd tit14 fr46 vf au ini6Xivr 1i6P6 a&d.tWtthe 

property, Th4 6&66 Zti6 hati b.Olh 6XteS&cd by tW CotA't8 Of 

thio St4t6 t0 fOr66l@MrO 66ti6whi6bar6 piVat 64le8 Ord6 

by th6 SU.U’t$&&W ptt6r i6&?068666iOR. Th6 3t2~6I66 CVutt 6f 

Texao lo the aP64 of E6mp6hlr6 v. Or66V68, ~UPP. 6t6t6d 6a 

tOlbW6, hl thi6 CQllh6~tiVIl~ 

“Ths OUltcurtiOrr Of ~lail!tltf’S 6OlUU6l 

Tao thQ 6freet th4t ‘t&e rlglat Qf xeaeapt~nn 

vi CL unior 1i6ahold6r is nQt cut dr by a. 

proab d 9$6tow&ieBth6 Janiarllsabold6r ir 

not tt purtq is not ooond 06 w thla, and 

neat sugported by au%hority' 41* r6amn. Ttu 

a6 i6 thUiB t6WlY 6tSCOa in ihHL60 Oa ?&Wt- 

&a&66, I l&97: ‘9h6 JXlZOba6W (U&W ihOalbmre pzwudl.a~bymleum%erthr jwwmr 

&.VM in th0 TM&&&i&S) t&B* t&6 Wt&#i@+t"8 

tit16 &lve&44 of all lnaumbr~ee8 1pa4e atno. 

the ar6aBion oi the p0lw6f.* Aad, aah, In 

th6 664m aaatl6n: ‘A 66x6 xe&pl6rly ereraia64 

UJl6.T a &IO-l’ Ir, OqtiVahSt t0 66l’iOb f QP6- 

clo6un,.by B 6ourt of 6Qtitj PropaTlJl pIUW4d.'* 

Th6 Am&~@ COwt Of ab$l Applrab r64ffina*d 

this prQpV6itiGkl In the Fldrlity Elnion Fir6 ~UXX3U66 CQBpsa~ aa68, augxa, an4 stat64 a6 ra.m6at 

*Under the pewr oi sale in the mart- 

@@I, the fiuanqe Qol~~y had the ri@ht t0 

t&kite pv4a466ion of the Oar W&d 6611 it with- 
lionoroSle ii&h L. Bwll, Bag;6 6 

out nOtiC to mber ior the pUm666 OS 

&tying the id6bt6dO666 6&6&R6tth6 Cti, 

&Uld 6UCh 4 6614 V66t6 title in the ptWChU66r. 

%oak Amor Co. v. iiilelia (Tex. Cit. ~@p.) 

247 3.X. 668; Orrhoer V. Tadr, 11 'Tax. Civ. 

xpp. Ire, 32 ii.%. 373; slngatr suing Maehi 

Cu. v. hiv6, 98 Tex. 174, 7L 3.W. 8'15, 60 

L.ii.a. 143, 97 AR. St. R6p. 8011 f6Ue -Innah 

Piano Co. v. jstliott (Ter. Cit. Appp.) 166 S. 

W. 29; Stat. Bxsbm56 Bank Y. Sd8h (Tax. Clv. 

A&Q.) 166 2.K. 666.. 

The rule was again 6tut6d. by th6 36awnt Court 

or Civil Appeal6 iu th6 Q&66 Of &tfabt ‘1. 86b6rt, 8% 8.pi. 

(2d) 929. The CvLWt 6tut6d a6 fO~666: 

"Th6 jU&Sl.Ut in taVQr Of 164r66Qtfl6 

Trust Corporation ir afflrrasb. Ia t6kf.q 

pVU6U6iOii Of t&B PUtWbib it iOuOU6a 

literary the gOU6r6 6iVOai by it8 a5Ftae. 

Shi6 BsthVd Vr fOreOlolllU6 6rt~Ui6hed 6Qpellan8*8 6666od lien. *bin6 Mittor Co. v. 

‘A. C. kn&lsh &auto Co. tT6r. 0018. App.) 291 

3.x. 1088." 

81 WI&&’ Oi 6-r. it i8 the O&&iM Or thf6 469 

~rtW.&t that kh6r6 6 S6t't&8~U N$bO6666666 6 awtOrV6hiO16 

end 60116 th4 661~ at a prlv*ite 8ale, which pro66dPr6.26 in 

acaOrbanO4 mith thO.t6m Of th6 'afst&aBQ, YotW ~~ptU%RWt 

16 authorized to fnws a $6rtlfbate of Title ia th6 n6m6 ot 

the purahaur at 6uCh priYit6 fclr66kWAE6 68& WI&ah WrtitiOata, 8WJ Bat ZlGt4 OE th6 46M6 tbs 666Qd Or ini6riCS Zi6lU 

WhiCh 6‘ii6t6d 6@iIi6t 66&d aotor VOhiOlO jWiQr t 0 t h6 t&O 

Oi lW~8666iQS 6ti fOf6a&6Pre Of th0 prior l.l6B. l-b6 &Jr 

inmreiatienthat rbarlldb6r6cyriT64 by ywr Departmtin 

auoh a aaae da ootlin66 under 23eetlon 35 at the CertlCiart8 

Qt Tit16 ACt icS 80 &ifidaV%t Ot tb@ U!@l-t&lg66 ObaUbQ Uttoh 

r6~0684OSiOn aab pdVat6 Sal0 Utld6l'thO t6W63 6f th6 IlOl-t&V3136. 

Moth- in thii5 Op$.XtiC# 6kdi b0 OCXI6tnt6d 66 Wz;&I~ to 116n6 whiohWrr6, ~2?~@~ t0 t&4 l&HI that W66 fra?6- 

. 

APPROVEDMAR 18, lg4' 

TQUU V6Ty frrnlf 

-%ccrc*LQ.&4 

A~~cp,~~y GiBERAL 03 TEXAS 

30:&S