If ?A!' had repossessedthe automobilefrom "3" under authority@'en in the first mortgageand sold to"C" under the powers also containedthereinor with the consentof "I?"then, of Course,the first mortgagehas been extinguishedand the mortgagegiven by "C" to "A" is to all intentsand purposesa mm mortgateand would be requiredto be stamp ed in aooordsnoewith the Aot. The same would be true if by oonsentof all partiesupon a sale frcan"B" to "C" of the former'sequity in t,h" automobile,the first mortgageis cancelledand "C" gives to "A" a ncv mortgage. If this does not answeryour question,pleaseexplainmore fully the problemwith which you are concerned. Hon. CharleyLockhart,page 4 (o-1787)
Addressingourselvesto your_fifth question,it is pointedout . . .. - that the Act itselfwould not exemptan instrumenttaken Ly an instru- mentalityof the UnitedStates unless the same bs taken in carryingout a governmental purpose. Such Act containsno exemptionof instruments signedby Rationalbanks. We have heretoforeexpressedthe opinionthat Nationalbanks are exemptfrom payin, e the taxes leviedunder Article 70479, VerncntsAnnotatedCivil Statutes. OpinionNoO.O-1486,addressedto Hone Tom S ay, CouatyAttoraey, Amaril10,Texas~ In that opinionwe directed atte&on tc tilefaot that such exemptioncomes from the inabilityof the State to levy such tax againstNationalbanks. The tax is leviedupon the recordingof lien instrumentsand the person ordinarilypresentingthe seme to the clerkfor reocrdingwculd be the mortgagee.,It does not ap pear From your questionthat the mortgageeis en instrumentality of the UnitedStates. The mere fact that a mortgafeis signedby a National bank acting in the oapaoiiyof executorof an estate or as a guardian wculd not entitleit to be exemptfrom the requirementof being stamped as providedin said Article 7047e.
The use to whioh the prooeedsof a mortgagemay be put has no bear- ing upon the questionas to whether the mortgagemust bs stampedin order to be reoordede Qsnthough the mortgagebs taken upon propertywhich the taxes so paid were againstsuoh instrumentmust stillbe stampedas provid- ed-in the Act. The averagedeed of trust or chattelmortgage confers widely differentrightsfromthose usuallyacquiredthroughsubrogationto a tax lien. Sinoe we answer your sixth questionby saying that the amount to be used for tie paymentof taxes shouldnot be deduotedfrom the totel to arrive at the auount tc be taxed, it bsoomesunneoessaryto snsweryour seventhquestion.
Yours very truly
ATlCRR!lYGRNkXALOFTEXA3
w /s/Glenn R. Lewis
Glenn R. Lewis Assistant
Approved OpinionCommittee I$BSPB Chairman