OFFICE OF THE ATTORNEY GENERAL OF TEiAS
**AUSTIN**

ifonorble ical

h 1. l3ud.l Chiet of ‘p

Cert 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 

### eationIB aoo~aaled by rtt wrtLfyln& that tw IIha* bwa regomesae4 **ao** o? the **eoatraot** betwea e ~mrtt(DItjpr even thorrs,h than be a awend lbm agaiu&8 & vshitis. *((L) Gkould the Deparoleent 

### rcrwlrea 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;ruirrunder 8UOh a sltution before we imy fsrrue a Certtfioate~o~ Title to the holder of 

### theoar under reportmxslon.w



### Inyourfiret queutlon 

### you rap0 **ooaoerned** 

### with the typeof infor~tlon whioh shouldbe reqzlred by your Dopartnmnt rmrn a applleant who hae puroheamd a 

### motorvehlole at t3judicial 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 lloeasedwithln 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 

### uponbeingprovided rrlthcertltiedwpy or the probate pr0043eainge, if say (U a0 adminlrtratlola ia neu

### wafmry,thanupan arribilrltshssiag 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 

### ofiloerrmakln&the judlcli~l

sale, exoept hmeiver, 

### thatwhere foraalomre lo had uader tbr 

### term of a 

### Slen,the attidavltot the gemon, flna, aszsoaletlon,

or oorparaticsor authorl%ed aGent, of the fact of reyosaeeslon enb dlvestlturoof tltle in awordume withthe 

### terrsof the lien, shallbe auitlaiegtto authorizethe lseuanueOS a new cerki.U.eate
or title in the ntune of the puraherer at suoh eale, cindsxoept further that 

### inthe oaas 0r the foreclosureof any Canetltutlonal or Statutory lima, tha 

### aifldavitOS the holder or YUO~ Uen, or it a crorporation, its *tint, oifthe 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 authorizethn 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 thepurohfieer at Y judicialforealoare sale uipon ~esentutlon or the bU+l of sale from the of?laormklngtht4 judlclfil 8ale.

In this amneotlcuayou am alno advired thet the **purchiielrr at**  **th Soreclomure**  **sala, it**  suoh foreolcrurewan o? the ilrst and prior lien a&abut aaid Inrtorvehlole, taken title to theame free of all **aubaoqurnt** liem whloh previouely existedprior 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.~loaof 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&U

### in& themotorvehiole 

### rt the foreolomre 061s irr ?unsLshed 

### yourDepartmentasregulnd **b$ Beetian**  **35 of**  **the Certiiloate**  of Title irct

you are alrtborised to ieaue a Certi?laata o? Title ln the narPro? 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 ootutaotloa

In your mooad 

### questionpu are oenoenmd with 

### a situationwhere the'mortg8&eereposoe6m~s Q oar under tlia 8x~eias temfs or the mmtgage vilthmt reoouTam to’ jgd~oial prosedun. In euah a 

### sltwtlon ~0'0~ are uaeuthorluedto 

### leaueu new Certif'ioarte ot Title in the bdl~ul afthe nkopt**gag- 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** 

### priorto mpo5ses810n the mortmgoor has title to the sortmed property. **As stated**  **by** the Corrpnfealon of **~~pepla** irr

the OZISOof **Gablncs Wtos**  **Cola pany**  **.v. ;i** **’ .c.**  **fin&s& kuto**  **Cemmny,** augra,

*In **Texas,** the la@ title to mxtgqed 

### propertyrwdw 

### Inthe mart&a&ax.*
St i8 also u well aettlodrule of lo* inthLrs St&e that wheathe mrtga2ee re~aseaeee @opmrfy he bolde the Babe be mortgageeand Pot (~aounef. The @t&prei~ Court 3.8~

Terraain859

the caee of BarlingY. Creaoh, al S.S. 337, stated as follovte : n* t

. ohs lnstrunantebeing ahattel xartgaam, t’he

vendor had the rights of a ~~~@gtte under a ahsttel ~rort&ageoontalnin& the stlpulatlons or right to 

### take POfBSe8- slon, uhlohwould 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&sovaer. * * +* (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 easeor 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 

### titersaoh 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 aooordwith the parer of aale ooatained~. in the awrtgage. * * **

T&m above Gtwted rule wa6 amI.8 aaaouneedinthe on80 0r -;&da t. Bowera, e;LS.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**  **gmop** ertp na hla OWIZand ~pgraprlrrte it.”
On Ghe other hand, tha Court8 at this State have long rsoognlsed rhe foreolosure OS iilien by repossession and sale aab private sale underthe tema of the aortgmget Chief Jwtioe &inoe In the Singer IQcg.Co, aaee, suwa, rtatea as rollaws, ln this oonnsation:

“ee are or the epialarthat cha qtmsticm860

**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 propartyror 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 martgugesmag take peaceable possession of the 

### grope&J witbout 

### 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 theValIAIty of maah B g~~vlsioa Ia a 

### mortgage1nthe 

### aase 0r Jetme 

### FrsnohMniw k Grgn Co. v. 

### Zlli~tt,166 a.%. 20. 

### The Court state6 ae follo*e:

“3~ th4 

### teras0r tha mortgage omexi8g 

### the titan 

### pianos,Elliott was authexiEe-4 te take poonesnloa

### thereof *uhwevex thy may or t%m be 

### round,and 

### uell thename 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 againstthe pdallapolisy oi this state, es expretwed 

### In the,deaI~Ion~ of our ooilrte. It Is aald in Al C.J. 706:
?lThs inortgageltselimay diepeasewith notloo, **as** whom **it** prwldss 

### thet the mortgageemay 8d.l et 

### privatesole.*
"Thsrule 18 **anaouaasd** as tollaus, In Jaw 011Chattel **AWrtgages** (6th **&id*)** 0 792:
'?'fi e paver or sele doer llot req.alrs 

### the gfvlnget 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 kppsalsof **Texas,** kaarillo, ad the ease of CaSpb8llv. aistexn See6 diOral8 Ccuupnn yr 109 S&i. (24) 997, court 0r Civil dppcrsla or nwiw. a8 imtoalo.

You em (11~0a4vIsecL 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 8amiprop8rty in a ouee of rorealtrsure by ths prior lien holdor at a private asis under the terms of ths mort@prge. See Campbellv. &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 

### sonnsatlonpmvidee as follows:



### N4 * * thatwhereforeoloaws ls had uaderthetextsor a lken, ths aitkdavlt 02 that permn, firm, assoolWlon, Qp arperatleaor 4utbmlzed agsnt, vi t&s f&at vi r4pv6- **666SiVtI** and diV46titlll.6 Of title in 86vOrdMO4 with tht t6l7ilSVft&# UM&, **6hal1b6** 

### &uiiiCi8ltt

o t!iUthOri60

the i86U6666Of a %WW 06rtiiht6 Of titb a tbs nUW5Or 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 iIlhi6 -PI. YGU **63-6**rlU%hW 6dVi66d that 

### tk0fhBrt6Mt -6% 

### rtot t6QUir6 **e re&as6**  **rigzled by**  **the** 6666n6 Ii66 **hold6r** olluie **the s6aond**  **1%6n**hQld6r'8 liell4&lill6tt&6 m%vr V6hi616 uUd6r th6 OOII

### struotionof th6Court8of tbia Statcr 

### hao b66nout oftby the prfVltat6



### fOF6Q~OSlUZ6

616. 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 

### CVutt6f 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** 9$6tow&ieBth6 Janiarllsabold6r ir d not ttpurtq is not ooond 06 w thla, and **neat**sugported **by** au%hority' **41*****r6amn. Ttu**  **a6** i6 thUiB t6WlY 6tSCOa in ihHL60 Oa ?&Wt- &a&66, I l&97: **‘ 9h6**  JXlZOba6W (U&W ihO**albmre** pzwudl.a~bymleum%erthr jwwmr **&.VM** in th0 TM&&&i&S) t&B* t&6 Wt&#i@+t"8 **tit16** &lve&44 of all lnaumbr~ee8 1pa4e atno. **the ar6aBion**  oi the **p0lw6f.*** **Aad, aah,**  **In** th6 664m aaatl6n: **‘ A**  66x6 xe&pl6rly **ereraia64** UJl6.T a &IO-l’ Ir, **OqtiVahSt** t0 66l’iOb f QP6- clo6un,.by B 6ourt of 6Qtitj PropaTlJlpIUW4d.'*
Th6 Am&~@ COwt Of ab$l Applrab r64ffina*d this prQpV6itiGklIn the Fldrlity Elnion**Fir6 ~UXX3U66**  CQBpsa~ aa68, augxa, an4 **stat64 a6**  

### ra.m6at

*Underthe pewr oi sale inthe mart- **@@I,** 

### the fiuanqeQol~~y hadthe ri@htt0 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 atthe 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 thii5Op$.XtiC# 6kdi b0 OCXI6tnt6d66 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,~~yGiBERAL 03 TEXAS 30:&S