### 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 

### inLfotley~Ootmty

### 586

in **COunQCtiOn** cith the **fOr4gOiag qqqst~Oa8,**  **YOU 6th6h** 
**a 1stt5**  

### ;rtoyou from zon. R. A. Seay, County Clerk, Lotley **CollntY.** Texas, **trM6ihOn.** stating oertain fact6 in oonneotlonwith **th18**

Lowever, lnaaffiuah a6 thl6 oplnlonwl,llturn squarely upon a oonstructfonof the abovementioned 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 anddelivered to CoxconwealthTrust Colepeny, a **corporation organized**  and exlatlng under the law6 **or** the State **0r** k'issouri,

**SE** ~rue.tee,,(St.

km16 union **Trust** Company; a corporationor the etafe or ~laooflri,Suco4611or Trustee) a oertainmortgage **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-eater1direction through the C6uutle6 or **Ifardemsn and**  Eottle ln the State of %x46 to the Southwest line of seld,CottleCounty, and from Aaae, Eardemen County, Texas, In 6 northwesterly**dir** eotion 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@;, aondltlonaand aOVi6iOlIP of 6aidmortgage atid deed of trust; and ViEsBIPAS,

the 66ldmortgwe Wa6 ereautcd tq aeoure (~0authorized issue of bond8 in the 6166 ot $SO,OoO **per** mile **or** oo6!pleted **road,** or 60muoh thereof a6 the Bailroad **Commission** of the State of %exae may ironi tfrmoto **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\rt**8tiUtding** 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 LienZortgage **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,aonetltutsa Yalld~,Unp‘ald and subelating indebtednessor 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 geldmortgag6 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 afore**said,** or it8 **Moces8or8** IA **tmt,** u?d/or~Its **or** their e188lgntm3,

aacordlng to the tern6 or said bond8 aad saidgortgage and deed or tru8t **and** the prorielaiu of this in6tmmeUt."
These yIrstMortgage 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~oleiteto 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 FhOtapply tO in6tX'Qtents given Ln renewal or cxtcnslans or Instr.UmAt8 theretolore staniped under the prwIa$ane of thisAct 

### or the one amended ha-by, and shall not ctpplf$0 instrmeerite **g;iY0A** IA the rerunding 

### of eztetihg bond8 or ObltgatIonsWhere 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 .Mt8AeIonfion.Johrz A. Eemllton, **page** 4

ggreem4At8, in tte form ordinarily and aosmonly t)xe~uted, sxtundlag the refituritg~date of a aeoured Indebtednessnot *theretofore stampeb under the provl6Ionrof thla AGtm roul¬ **be exempted**  fcom the inaldenae of th16 tar. Tfiis opinionpresent6 a oGmp2ete antper 

### to your rirst question,enawe, therelore, e~~l06e a oopy or mm for your cxemlnatton.

16 the ln8trumentdascrlbad IA your letter and attashed Gorreepondenaeand reproduoedhereinabove,en lnetrummt *'given In rexmwal or extennioa" **Or 4**  **bonded or**  eeaured lnaabtedn688~, %ot theretofore etaEp6dunder the pmvI6iOna Or this A&," **80** as to be subject to the exciea or privilege tax lcvied **by** subdivision (a) of article 7047e,Vernon*eAnnotated Civil **Watuter,** oan8idered in GOnnaatiOndth the **above** 

### tjuotd **pZ ’** **iJYf803 %9li8**  **i8 8ubstantiall.y**  **;yGUr 8GGOd**  GUeStion, and the 

### onewhich We find thi8 Opinion till SOlOly turn upon.

It oonolueIvslyappdara 

### tramthe *Wh6F6a8611m ot.thl8 j.n8truaant that the **original** bond& indebt6dne88,aeoured **by a**  **mortgage** or deed or trustupan d68Ol'lbed prOpertie or then: Quenah,Aoma k PeGifiG ~Ballway company, is epah llecured**obllh** tlon **a8** woald now comewithin the **scope** and purview o? subdlvloIoa (a) ot ArtlGle 70476.Vernon*6 motated Civl2Btatute8, 1evyXeg en exoP86 **or** prirllegs tax in a graduated emeuet %n all note8 and obl+&atione 8eeuredby chattel.mortgage,**6oed** of trust, keohaniaY8 lien OOntraot,vMd4r*8 uea, 00n6$tiQnal 8ul68 Gentreat sad all $nritruments of a 8Imllarnature rhiah arc‘-llWd
or reaorded 'inthe orrloo or the aciupty dPerk sniderthe &bglitre

### tion &PO 0r this %at&.a It furtherappears that suah iadobtednee8 matured Octobet 1; lOSO,and the imtrument in question here was **WGGUtG& Oatobsr**  **8, 1959.**  The operative portion of the instrumentreolte8 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~btednO66of *he said railway cgretpfmy and the prlnalpal or said **Imlebtedners,** togetherwith ititerast thareon aaartaed

and to eGaru8, 8hellbe wable 011the demnd of said Central **Eauovetr Bank**  and '.kst Comp~ eta. The **instant** further prwldee that "the **rlebbc** and llen erldanaed or craated by 

### saidbonds 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.6to Gharaet&ise tha ~isstmuaanta8 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 Jnetneesaod validity of the bonded InUabte&neasand lien 604u.ring se.mc~, agnolng to
pay aam on dcmanb. But the zwo mp&pia, in rarerena to the bonds, of the words "arehereby renewed and **extended,"** or t&e designation of thZ6 Instr\nnent as an extensionagreem4nt by tbs parties thereto or Interestedofficial6hime, till not 6&a it awh, either in sub6tanceor form. It ISnot WI@ t&cpartis oall an Instrumnt but what it aotually Is In the eye6 of the law which till control
, and we must therefore resort to the euthorltlesupon 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&. Cottonseed Froduat6 Co., 81 Ltea.'tE!al) 1691 O'l)anloa **ts.** WllIr, et al, l29 So. 4401 Slottowv6. Jiullfnr. 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 prorl6lonwith rerareneo to 4xten6Ionagreessente,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 ,an4xalse 6tanrp tax upon a0 orate ssoarItI46

Ilp gad providing that every renewal triersor ahail 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 elanisntsl indentur4 or mortlbageext&- y of thti

orI&.~l bon4 I~IIM), but a4t being a rsnswal thersor, in the a,ea64.taata new Indantaw 'or deed or trust eat areout6d In lieu of the orlslnal. It was he16 that the inatrumeats fnvolvedrrems"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~sfOUOr 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 dirrerentmaturity 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 ocoeptatlonOC the terms. The tnstrumnt under examinationhere 16 not either a renew61 sgSO4&4lit, an sxten6Ion agreement,or a raneweland **sxt4n6lon** 6ggry)4mnt,

In the @On84 .whIohthe tsglslaturemust 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 

## rmmOctober 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&664- .eUriBg66S4, 60 66 to toll the Statute ot LltitatI&s lor the rled 0r on4 day, underArt&314 W59, Vernon*6knnotntsd 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 inEtrtznsnt64xt4lMffmg

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 vrhlohmalt 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 un**  **6404666~ a?3r**  8REWerto **DUS-** thi@ QU40ti~.

**YOU ain**  ae~ordlaglg ed*l44d.thatthe inatrw646t Q4S4rlbad and df8QuU64d in this opinion **i6** no8 ,euaha rensra~ or ertsn6Ion br the orIg1nal 1nd4bt4&466 an4 llsn r4r4m4d tO tberrln, 6s to

### be sabjeotto t&earoisestamptax leviedby eubdirl#lon(e); mlole 7047~1,

Vernon~e**Annotated** 

### Cirll&atutsr, consideredin connectionrlth thepro~luotbersin,end the eueloeedopinion of thf8Departmentaonstruing&am. 

## %mtingthe roregolngrul3.y anewerayour inc,uisy, we lr.
Your8 very truly

A'JTOFX.EY

GFJURa OF TMAs