E GENERA 

OF TEXAS 

Hon. Baacom Giles, Chairman 

1 Ihrrrul4 

Veterans' Land Board 

Land Office Building s 'cg 

Austin, Texas Opinion No. S-79 

Re: Legality of computing interest on veterans' land 

loans to the next semiannual installment date 

uhen payment in advance 

Dear Mr. Glles: of due date Is tendered. 

You have requested the opinion of this office 

on the following veterans' land matter: 

"On May 18, 1950, this office executed 

a forty year contract with Mr. Joseph P. 

Hart for purchase of land through this Program. The contract executed between Mr. 

Hart and the Veterans' Land Board provided 

for semi-annual installments payable on or 

before the 1st day of each May and November. 

"Under date of September 8, 1952, Mr. 

Hart wrote this office that he had made arrangements to pay off his veteran's loan in 

the near future, and requested that we forward abstracts of title on the tract of land 

for examination purposes. After securing 

the required deposit for loan of the abstract, 

it was forwarded to Mr. Hart on September 16, 

1952, Under date of October 29, 1952, Mr. 

Hart made a written request that this office 

advise him of the balance due on hia contract 

together with the daily Interest accrual rate. 

The request was received In this office on 

October 30, 1952, but due to the heavy press 

of Incoming mail at that time was not reached 

" . 
Hon. Bascom Glles, Page 2 (Opinion No. S-79) 

for action until November 5, 1952. On that 

date we advised Mr. Hart in writing of the 

amount of principal due on the contract and 

Interest calculated until May 1, 1953, which 

was the next installment date. Mr. Hart has 

objected to payment of this interest beyond 

the date on which his remittance was made to 

pay off his contract in full. 

"The entire Veterans' Land Board unanimously determined that due to the wording of 

the contract which was based on Section 17, 

Senate Bill 29, Acts of the 51st Legislature, 

and Section 7, S. B. 351, Acts of the 52nd 

Legislature, which is a revision of the first 

named section, that interest should be computed and charged until the next installment 

date following the remittance of any payment 

over and above the current amount due on the 

contract." 

The date on which Hart remitted the balance of the principal 

Is not stated in your letter, but from accompanying papers 

It appears that remittance was made sometime between November 5, 1952, and January 8, 1953. The portion of your contract with Mr. Hart which is material to this present problem reads as follows: 

"3 . The total consideration for this 

if 

urchase is Sixty-five Hundred and OO/lOO 

$6500.00) DOLLARS, of which the sum of 

Three Hundred and twenty-five and OO/lOO 

($325.00) DOLLARS has been paid. The unpaid principal of Sixt 

Seventy-five ($6175.00 3 

-one Hundred and 

DOLLARS shall be 

amortieed over a period not to exceed 40 

years with annual interest at three (39%) 

per cent upon all unpaid principal. Buyer 

shall pay or cause to be paid Installments 

or principal and Interest semi-annually 

to the Conmissioner of'the General Land 

Office at Austin, Texas, on or before the 

first day of each May and November hereafter until the total purchase price is 

paid. The amount of One Hundred & thirtythree and 06/100 ($133.06) DOLLAHS shall 
Ron. B&scorn Giles, Page 3 (Opinion No. S-79) 

be due and payable on or before the 1st day 

o'f FovembeF, 1950, and the amount of One 

Hundred:& thirty-three and 06/100 ($133.06) 

DOLL&K? shall be due and payable semlannually on or before the first day of 

each Meg and November thereafter until 

the total purchase price and interest 

have been paid. All interest and principal which shall become delinquent shall 

bear penal interest at the rate of five 

(54%) per cent per annum fr;; ;;fd;;;er 

same becomes delinquent. 

agreed and understood that buyer may on 

any installment date pay or cause to beg 

paid any or all of the unpaid principal, 

but payment of a portion of the unpaid 

pHncFpa1 will not relieve buyer from 

payment of the regular semi-annual installments thereafter in the amount of 

One Hundred & thirty-three & 06/100 

($133.06) DOLLARS." 

Section 17 of Senate Bill 29 (Acts 51st Leg., R.S. 

1949, ch. 318, p. 597), which controls the terms of thin 

contract, and also the act as amended, Article 5421~ 8 17 

(Acts 52nd Leg., R.S. 1951, ch. 324, p. 55O),provldes "that 

the purchaser shall have the right on any Installment date 

to pay any or all installments still remaining unpaid." 

It can readily be seen that the wording In the 

contract relating to premature payments of the principal 

was taken from the portion of the statute quoted above. 

The phrase "installment date" appearing in both the contract and the statute must be explained by the portion of 

the contract relating to the installments. The. lnstallments are therein required to be paid "on or before the 

first day of May and November," and therefore the phrase 

"installment date" clearly refers to November 1 and May 1 

of each year, since these are the dates upon which the lnstallments become due. Lovenberg v. Hen- 104 Tex. 550, 

140 S.W. 1079 (1911); National Bank of Co&erce v. Kinney, 

98 Tex. 293, 83 S.W. 3w (1 904) Fenner, Beane &Under; 

leider v. Donoshy, 62 S.W.2d 264 nex.Ci 

ai5m. 1 

v.App. 1933, error 
Hon. Bascom Giles, Page 4 (Opinion No. S-79) 

Both the statute. and the contract .require that 

any premature payment 

"Installment date." 

shall be made on or as of the next 

The "installment dates!' arena shotin 

by the contracts to be Noyember 1st and May 1st of each 

year. We therefore agree. with the Board that Halrt's entire obligation included Interest up to the next lnstallment date following the date of remittance oft the unpaid 

~~II;IEX~ and that:lntereet was properly charged to May 

, . 

SUMMARY 

that interest on veterans' land loans~ be computed to the next semi-annual installment 

date when payment In advance of due date is 

tendered. 

APPROVED 

,Jesae P. Luton. Jr. 

nd Division 

Willis E. Gresham 

Reviewer 

Mary,K. Wall 

Reviewer 

Yours very truly, 

JOHN BEN SREPPERD 

Attorney General 

ByA- & 

Thomas~~Black 

Assistant 

Robert S, Trottl 

Pirst Assistant 

John Ben SheDpperd 

Attorney General