585 

OFFICE OF THE ATTORNEY GENERAL OF ‘TEXAS 

AUSTIN 

Bonor6ble fohti A. .E6ml1twt 

Dirtriot kttorney 

&dahor , T6mir 

Darr blrt 

lrtter or J U 6@6k QU' OQinlOn 

otate4 ClVll 

in Lfotley~Ootmty 
586 

in COunQCtiOn cith the fOr4gOiag qqqst~Oa8, YOU 6th6h 

a 1stt5 ;r to you from zon. R. A. Seay, County Clerk, Lotley 

CollntY. Texas, 

trM6ihOn. 

stating oertain fact6 in oonneotlon with th18 

Lowever, lnaaffiuah a6 thl6 oplnlon wl,ll turn 

squarely upon a oonstructfon of the above mentioned lnatrumont, 

oOnSidar46 rrom it8 row corner6, and the materlal fcOt8 appear 

In said instrument, we quote same in heeo rerba, omitting iomal 

parts: 

"EE5ZhS, Cn Octot.er 1, 1909, iuanah, ho& & Paoiflo 

Railway Conqany, a corporation organized and OXlStilI& 

under the laws or the State of Texa6, exeauted and delivered to Coxconwealth Trust Colepeny, a corporation 

organized and exlatlng under the law6 or the State 0r 

k'issouri, SE ~rue.tee,,(St. km16 union Trust Company; 

a corporation or the etafe or ~laooflri, Suco4611or 

Trustee) a oertain mortgage and deed ai trust covering 

and lmluding.the 11li8 ot Tt%ib’Oad of the mortgagor 

0xtt3neing rrom amiuh, Enrdeesn County, 9ku.66, in a 

rresterly and southm-eater1 direction through the 

C6uutle6 or Ifardemsn and E ottle ln the State of %x46 

to the Southwest line of seld,Cottle County, and from 

Aaae, Eardemen County, Texas, In 6 northwesterly direotion to the Red River, together rith oertaia other 

property in said lg6tlrmnnt deioribed, r4tar4nC4 bore 

being tade to 6aid mortgage und deed of trqt an4,to 

the reoord tharaor ror 6 full aad complate description 

of the propCrt)r covered thereby, 46 ~411 c6 the te%-6@;, 

aondltlona and aOVi6iOlIP of 6aid mortgage atid deed of 

trust; and 

ViEsBIPAS, the 66ld mortgwe Wa6 ereautcd tq aeoure 

(~0 authorized issue of bond8 in the 6166 ot $SO,OoO per 

mile or oo6!pleted road, or 60 muoh thereof a6 the Bailroad Commission of the State of %exae may ironi tfrmo to 

tima authorits ana al&w, to be known as its First 

Mortgage 81x Per Gent Gold Cougwn Bonds, to bear bate 

the 1st day of October, 1900, and to be payable the 1st 

day or Gctobar, 1939, with interest at the rate of ti 

p4r acnum and pursuant to th6.t4l7&6 Of mid mOZt#Ja&4 

end deed it tru6t bonda eggregetlng t&e prlnclpal cum 

or fji%,B15,~000~00 have been 4~13' i66U4d and are now cr\rt8tiUtding and are held by Ce&tr&cial ?ianowr &z&k and Trust 

Company, a owpgration arganised aed existing under the 

&rue of the State of ktw York, aa Trustss under the 

Prior Lien Zortgage 0r St. %oul8-&n F-01640 Ralluray 

ccmpany, dated July 1, 1916. 
tori. Jobn 2’. imt<on, page 3 

wEci:, fi-li.iiXFORF., ror vnlusble aonaidoration to It 

paid , &a&ah, Aem k. PaaIfIe kallwsy Coa;pany hereby dealar08 tht said b0Ad6, aggra$atIAg the priAeipa1 8rta 

or 92,91~,000.00, aonetltuts a Yalld~, Unp‘ald and subelating indebtedness or the said Bai2way Campany and 

the principal of Said indebtedness, toeeth6r rith 

iAt0reSt theraon accrued end to aaarue, shall be payable on the demand or said Central &mover Bank emd 

Trust Company, 86 ~rustse as aror06eId, Or Its SUcaessor8 IA truet, and/or It8 or their aSSI~ee~, and 

the debt and lien evidenced or areatsd by said bond8 

and mid mortp,aga and deed of trU6t are hereby renewed 

and extended and continued IA full foroa and effect 

aooordl% to the tenor, erra and reading of 8aid 

bond6 and geld mortgag6 and deed of trtmt,. whlek 

martgage and deed or trust shall 8tand a8 #moUrlty for 

the payment of said debt OA the U-Ad of safd Gantral 

&mover Bank and Trust Company, a8 Trostse a8 aforesaid, or it8 Moces8or8 IA tmt, u?d/or~Its or their 

e188lgntm3, aacordlng to the tern6 or said bond8 aad 

said gortgage and deed or tru8t and the prorielaiu of 

this in6tmmeUt." 

These yIrst Mortgage Sir Per Csnt Gold Co~poa 3ondl USE+ 

or%glnally lseued Oetebsr 1, 1909, by 'the ??mnah, A&me a; Pad@ 

Fuilway Company ia the prinalpal sum o? $2,9l@J3QO.O0, sod the 

kOrtga@ O? deed oi tMUt 8e8lZdZk(t thi0 bond iiX8U6 U68,.,Of,GOUSW4, 

not atamped, as a coadItlon~prere~oleite to mgiatration,.boeaim 

the 8tatuta levying the excise stantp tax upon 8Uch Instfawnt 

bad not been -acted. In this coBAsUtioA, SUbdiYiSlOA (a) 'of 

IvcIolo 70470, 88 emeAdad, VerAon' knnotrtsd CLYil Statutes, 

contains the r0ii0uing p~~ovisor 

" . and, providiag fktber that, 0XGept It8 to’ 

rm&aie or 6xtsnslon6 0r aaorued iatereutt, the 

proV1810nS or thl8 8sctIoA shall FhOt apply tO in6tX'Qtents given Ln renewal or cxtcnslans or Instr.UmAt8 

theretolore staniped under the prwIa$ane of this Act 

or the one amended ha-by, and shall not ctpplf $0 

instrmeerite g;iY0A IA the rerunding of eztetihg bond8 

or ObltgatIons Where t&O prNWdIA& IE8trPoMAt Of 

rreaurity was stcr~ in accordsrace with this bo% or 

the ona ~aerendsd hereby5 . . .(I 

This ?epartmaAt bad ocaasion reaantly to eomW-%ae thel bwa pFt3Yi8t# IA Opinion X0. G-1962 to Hostorable Dan ri:;'&M.s#n, 

Ci~+tl District ~ttorn6y,ioaton, lkxa8, and held that .Mt8AeIon 
fion. Johrz A. Eemllton, page 4 

ggreem4At8, in tte form ordinarily and aosmonly t)xe~uted, sxtundlag the refituritg~date of a aeoured Indebtedness not *theretofore 

stampeb under the provl6Ionr of thla AGtm roul¬ be exempted 

fcom the inaldenae of th16 tar. Tfiis opinion present6 a oGmp2ete 

antper to your rirst question, ena we, therelore, e~~l06e a 

oopy or mm for your cxemlnatton. 

16 the ln8trument dascrlbad IA your letter and attashed 

Gorreepondenae and reproduoed hereinabove, en lnetrummt *'given 

In rexmwal or extennioa" Or 4 bonded or eeaured lnaabtedn688~, 

%ot theretofore etaEp6d under the pmvI6iOna Or this A&," 80 

as to be subject to the exciea or privilege tax lcvied by subdivision (a) of article 7047e, Vernon*e Annotated Civil Watuter, 

oan8idered in GOnnaatiOn dth the above tjuotd pZ’iJYf803 %9li8 

i8 8ubstantiall.y ;yGUr 8GGOd GUeStion, and the one which We 

find thi8 Opinion till SOlOly turn upon. 

It oonolueIvsly appdara tram the *Wh6F6a8611m ot.thl8 

j.n8truaant that the original bond& indebt6dne88, aeoured by a 

mortgage or deed or trust upan d68Ol'lbed prOpertie or then: 

Quenah, Aoma k PeGifiG ~Ballway company, is epah llecured obllhtlon a8 woald now come within the scope and purview o? subdlvloIoa (a) ot ArtlGle 70476. Vernon*6 motated Civl2 Btatute8, 

1evyXeg en exoP86 or prirllegs tax in a graduated emeuet %n all 

note8 and obl+&atione 8eeured by chattel.mortgage, 6oed of trust, 

keohaniaY8 lien OOntraot, vMd4r*8 uea, 00n6$tiQnal 8ul68 Gentreat sad all $nritruments of a 8Imllar nature rhiah arc‘-llWd 

or reaorded 'in the orrloo or the aciupty dPerk snider the &bglitretion &PO 0r this %at&.a It further appears that suah iadobtednee8 matured Octobet 1; lOSO, and the imtrument in question 

here was WGGUtG& Oatobsr 8, 1959. The operative portion of the 

instrument reolte8 that, ror a valuable oonelderatlon, the *ailwar GOS#My %ereby aea&rer that said bonds, aggregating the 

prinaipal sum of.&,916,000.09, OOAStitUtO a valid, ti$ald and 

8tlbsiatiA~ iAd~btednO66 of *he said railway cgretpfmy and the 

prlnalpal or said Imlebtedners, together with ititerast thareon 

aaartaed and to eGaru8, 8hell be wable 011 the demnd of said 

Central Eauovetr Bank and '.kst Comp~ eta. The instant 

further prwldee that "the rlebbc and llen erldanaed or craated 

by said bonds an6 said 6mtgage 6nd deed of trust are hereby 

r4w6w8a aud sxtended and oontlnued in rrtu roroe amd eiieat sob 

-to thb tenor, eirsrt and readlq or aal4 boadeW etG. 

The 2angOage ftl6t qu0ted, in rOZ7QOAiy~ al~d without ~'6Qki.d 

to legal prlnol~~.les, tend.6 to Gharaet&ise tha ~isstmuaant a8 en 

extension or r(ms*al agreemeut, while the wards quoted prior 
589 

thereto Indicate only an Intent on the Oart of tbs 6iortgagor 

railway oompany to eclaiow1ebg4 the Jnetnees aod validity of 

the bonded InUabte&neas and lien 604u.ring se.mc~, agnolng to 

pay aam on dcmanb. But the zwo mp&pia, in rarerena to 

the bonds, of the words "are hereby renewed and extended," 

or t&e designation of thZ6 Instr\nnent as an extension agreem4nt by tbs parties thereto or Interested official6 hime, till 

not 6&a it awh, either in sub6tance or form. It IS not WI@ 

t&c partis oall an Instrumnt but what it aotually Is In the 

eye6 of the law which till control , and we must therefore resort 

to the euthorltles upon this queutlon. 

The rule may be @morally etatad that 4~ extsrrrrlon or 

rineral of not46 snil the liens ssourlng 6~4, r46t6 io hontraot 

an& mmns that which take6 #a84 when the debtor and omlitor 

~a44 an agrseamit, upon a valuable conaidaration, for the 

sturlty or the debt on a day subsmmmt to that provided In the 

0~1ninsl 4ontraot. lratI0nsl Bank or ~06m4r04 ~4. Ics6.n4p, 08 

'293 8S 0. g 568g'El.k Horn 3-k k !&get Co., et al ~6. 

$&kg&n:, 30 s. ,; . (24) 066; '&apb4llPlver Timber Go. Lttl., 

is. Vi~rliii, 66 ?cd. (2d) $98, 108 A.L.R. 965; sh@A,Tdon va. &la&. 

Cotton seed Froduat6 Co., 81 Ltea.'tE!al) 1691 O'l)anloa ts. WllIr, 

et al, l29 So. 4401 Slottow v6. Jiull fnr. Co., 129 60. 5991 

84~~4nS vs. Habeta, et al, 199 5, E. 284. 

‘In the~oaea ot &t&ail Bank ai Comaerae tar &may, 

uupra, our ytrpreme Court, in pat%6I.ng upon tpe iegotirbtllty of 

a proadlrsory note aontalning a prorl6lon with rerareneo to 4xten6Ion agreessente, 6814: 

*It 044m6 to u6 the extension 6m6nt Is that whloh 

takea g3.604 when the debtor anb aradltor aeke an agreee4nt upon 8 valuable eon6l4eIWtlti for the pryzwnt or 

the debt un 6m day 6tibsaqaent to that ~rerioualy 

6tIpolatau.' 

The 04648 of Gai@b'slliiIver TImbsr Go. vs. Bierhue a&xl 

Ske~ldon v6. &ia6. Cotton haed Produbt6 00.~ both suprn, Involved 

4 oon6trw3ti0n or the wozd +464w81* appearing IO an dot or 

OonSr466 levying ,an 4xalse 6tanrp tax upon a0 orate ssoarItI46 

gad providing that every renewal triersor ahail Ilp be tax4d 46 4 new 

lsbue. The instrument before the court In 4rioh or th~464 Oansi. 

wau In the ntltm of a sup 

it& the tLgle of the mturl e 

lanisntsl indentur4 or mortlbage ext&- 

y of thti orI&.~l bon4 I~IIM), but a4t 

being a rsnswal thersor, in the a,ea64 .taat a new Indantaw 'or deed 

or trust eat areout6d In lieu of the orlslnal. It was he16 that 

the inatrumeats fnvolved rrems "r4imw&6* beoeuea they ron?i8slne& 

the es6entiaZ ooadltIoa6 of ab artenrlon OS tkrs maatn&tp aat.4 of -, 

th4 orlgUa1 Ias+Puaent. 
590 

It will thus be 604n frO&s the ndjudieatad ces4a In thla 

8nd other jU~f6di4tiO66 thet 4Xt4~sfOU Or payment of en obllgatIon rents In agreement or parties, by which, for a cohnlderafioc, the obllgee p2’&1u448 himcalf from takInpS e&ion Ugain68 

&U&r during the period or 4Xt4liEfOli; the tI6Ni or paymant Is 

po6tp0n4d and'e new en6 dirrerent maturity urto is rIx4d than 

the orIgiMl .inatrPrcent b4sr6. The eontut or the prorlro under 

4~6id4?6tiOn here do46 not S4QUil'4 any other Or diffter45t 

~onrtruction to be phacd upon the words %m4wnl or ertsnaion 

of iM8XWEtn86* than that acaordsd it, not only by the above 

d&4I61066 but by the ordinary ocoeptatlon OC the terms. The 

tnstrumnt under examination here 16 not either a renew61 

sgSO4&4lit, an sxten6Ion agreement, or a ranewel and sxt4n6lon 

6ggry)4mnt, In the @On84 .whIoh the tsglslature must h4va Intended, 

b&U64 am4 I6 not 8 r4nnewnl or the origin81 Isdenture or deed 

Q$ tI'llEt, LLOr iS th4 lSC&tUSity date Or the bond6 seOur4d the ruby 

~wtendad rmm October 1, 19Sb, to any future date. 

Will4 the purpoesa which promsted t.he~ exsautlon Of thl6 __ _ ~PstlTWL46~ al-0 606l4WMt ODEOPT4, 

. . _ -. 

mere om 44 no aout that Its 

eon. John a. k%c.Ilton, pa.4 0 

only 4fr44t Is to aaknowladge the ju6ta486 or the orI.glnal 

bonded Ind4btednsS6 and to 40nrmith4 *slIdlty 0r the 114x&6 64- 

.eUriBg 66S4, 60 66 to toll the Statute ot LltitatI&s lor the 

rled 0r on4 day, under Art&314 W59, Vernon*6 knnotntsd Civil 

&8it46. It I8 appar4ntly an atbempt to ooaply'wIth the term6 

or Art1014 bb?%?, ~~Z’J.XOXI’S AnnotSt4d. CiVil %i!BtUt46, being 4x4- 

d&e& and 44kn0vf14di344 with the 6t6tuto'ry roim6lltlea, but that 

Et&U84 el4arly eOn8~p~f46 the r4gI6tmtIOn Qf inEtrtznsnt6 4xt4lMffmg th4 date Of IEiitUTit~ Or the drigiaal fXld4bt8d&l866, and, 

In raot, I6 ths typ4 0r renew61 or art4riaion Instr654nt 406t46k 

p&&d by the proviso h4r4 oonaldered. spite tru6 the inatrum4nt 

here 4X84tIdE the period of llmltatIon during vrhloh malt rpay be 

broryht by on4 day, and to that extsat and ror th6t purpose, 

may be aaid,,by irclplieatfoa of law, to extaad th4 deed of trust 

or Indenturs seourlng 6~. 

(ed) 111. 

Cherry VS. Corbnn, et al, 119 1. V. 

But th16 n?arsly go46 to the zem4dy and Is a pelts 4 

dlirsrent thlaa, irum an lnot~rument whleh r4rlWis s oontraat 

between the partIe to altsr their substentfoe rlg&ta, bg 6iwi6g 

go;& the, fate when the rlpkt or the oblige4 te am firet 

. 

The toregoihg eE6wer to your 644ond qtm6tZon render6 un6404666~ a?3r 8REWer to DUS- thi@ QU40ti~. 

YOU ain ae~ordlaglg ed*l44d.that the inatrw646t Q4S4rlbad 

and df8QuU64d in this opinion i6 no8 ,euah a rensra~ or ertsn6Ion 

br the orIg1nal 1nd4bt4&466 an4 llsn r4r4m4d tO tberrln, 6s to 
be sabjeot to t&e aroise stamp tax levied by eubdirl#lon (e); 

mlole 7047~1, Vernon~e Annotated Cirll &atutsr, considered in 

connection rlth the pro~luo tbersin, end the eueloeed opinion 

of thf8 Department aonstruing &am. 

%mting the roregolng rul3.y anewera your inc,uisy, we 

l r . 

Your8 very truly 

A'JTOFX.EY GFJURa OF TMAs