OFFICE OF THE ATTORNEY GENERAL OF TEXAS 

AUSTIN 

17, 1940, yes SubIt tc u% the 

s iiled for rsnord ir 

t Cxeci~ttad br '%msns 

ITOll 1.. :TCT?PS, ;tustes 

ruling, t?m iwrtfgkg~e aolleotad 

thf8 aaolint in e80rEa 8Ubd%Ct 

b%$.?ig pr%§%ntCd tb it for payM3t 

:‘tCQdn8 ]Iari: ?+part;aelita is now being 

liquidated &kit 16 the &sire cf tha partfea inYOlYfitd to dlr;?nsv GI the $405.i)O ~hVl<i In CIaorow.* 

Yeu raquaet cur cpinitu ~6 to vðer or oat Cu%!i dcsd 

oi tract rshould ba %x%.mpt fmrom t.hv tsx le~lvd by ~irt~ole 7541B, 
IlOll. Charley Lockhart, 2air.e 2 

Vernon's Civil Statutes, in view or the fact that siad fnatmment 

waa in security of an tiebtedneae insured by the Federal Housing 

AddaifitratiOn. 

At the the of the nbove transaotlot, said mtlole 7047e, 

Vernon*8 Civil Statutes, read in part as f0llows: 

;(a) Except as hereio othcrwlse provided, thare is 

hereby levied enb ass%ssed a tax of t-i; oents (lO#) 

on rash Cne 'l'ucdred Dol.lar% ($300) or fraction thereof, 

over the first two hundred Dollara (YyZOO), 4x1 all 

nctes and ob&Igations scoured by ohattal mcrtgage, 

dead of trust, mvohanio'a lien oontraat, vsndor's lien, 

oonditional aales oontraet and 211 Instruzienta or a 

similar nature whloh are filed or recorded in the Orrio 

at the County Clerk under the Regi@tration Laws of this 

Stats; providing that no tax &aLl'b% levled on lnstruments for an amoUnt or TWG Eundrad Dollars ($200) or 

lass. After the efre0tlv0 aate of thla kct, exoept as 

hereinafter provided, Ro lastunrent orcatlng a lien of 

any oharaoter to aeoura the pay+%Rt of monay, or reaervl~g title tc any property until the purahase prioe 

thereof shall have been paid, ahall be filed or reoorded 

~bj,any County Clerk in this State until.there haa bean 

afftiad to suoh lnat~ruaeat stamps in aooordanae with the 

provisions of this Seotion; and providing further that 

th% provlaions of this Saotion ahall not apply to 

renewals or elctehs:ona 0r %~y notes or 5bliSatioRu. 

and specifically shall not apply to refunding Or exieti~g bonds or ~obligatione. And providing further this 

. Seotlon shall not apply to notea and obligations Or 

fnetmnenta aeourjng same taken by or on behalf cf the 

United States or any oorpcrats agency or ioetrumentallty 

of the Unitad States GovermeRt in carrying, out e iwverramsntd purpose as espreesad in any hct of the Congress 

of the United States.* 

It will be firat noted that this note and dead Of trust 

were not taken by sny cgenay or lnstrumantallty of the Unit%6 

States Cloverament. The tax in queetlon la levfed upon the reoording of an Instrument of aeourlty and falls upon the benefioiary of the mortgage or deed of trust, in this fnstanoe the 

Yrudentlal Insuranoe Conpeny of Amvrloa. If there ia ang burden 

cast upon the Federal Faosing~ Admioistration through it6 in%uran~e 

of this loan and others of the aaz~e oliaraoter the 8%~ is r%~OtC 

and indiraat and cannot have the influenoe oi eraaptlng theaa 
Hoc. Chcrley Lookhart, page 3 

instruments iron the tex. See Zamea v. 2revc 3onutruotion CO.. 

302 C.S. 134, ce L. Xd. 155. Va heve read the ciplnion of Xx-. 

rillfrord to which ycu reter and the same is entirely 8USoeptible 

of the construction t-hat euoh instruements would bbl exempt from 

the tax. I!ovover, eutsequent letter opinions written ty &r. 

Willfiord declare that h8 did not inten to so hold, Z. I.. 

Krillirord, Aeeletant Attorney General, to Prank R. Newton, Jr., 

August 6, 1638; K. 1.. ::'lllirord, Rs818tant Attorney General, to 

Albert C. Trawalter, %eptember 10, 1938. 

Cur answer to your question is thet the deed of trust 

mentioned in your letter wea subject to the tax. 

Tours vary truly 

ATTC"n.YX3 GE?JXRAL OF TEXAS 

+proved 

Opinion Commltteo 

Br B.W.B., Chairman