Alabama Attorney General Opinion 1979-0021

# THE ATTORNEY GENERAL STATE OF ALABAMA · MONTGOMERY, ALABAMA 36130 CHARLES A. GRADDICK ATTORNEY GENERAL January 25, 1979 File # 20 1-26-79 79-00021 Hon. R. I. Gentry Judge of Probate Jackson County Courthouse Scottsboro, Alabama 35768 FILING TAX - MORTGAGES - JUDGES OF PROBATE Mortgages which recite that they are security for any other debt which may be incurred during pendency of the mortgage are open-end mortgages and if a bank is the lender such mortgages are subject to the provisions of Act No. 671, Alabama Legislature, Regular Session 1977 [§40-22-2(2), Code of Alabama 1975 (1978 Cumulative Supplement)] Dear Judge Gentry: Reference is made to your letter of August 25, 1978, in which you request the opinion of this office as to whether or not certain instruments, copies of which were attached to your letter, are open-end mortgages within the meaning of the provisions of Act No. 671, Alabama Legislature, Regular Session 1977. The provisions which you have circled in red on the two documents attached to your letter provide that the mortgage in question shall be security for any other debt which may be incurred at any time before the mortgage in question is paid in full. As such, it may be anticipated that the lender will lend additional funds at sometime in the future. These mortgages are, therefore, open-end mortgages within the meaning of said Act [§40-20-2(2), Code of Alabama 1975 (1978 Cumulative Supplement)]. Yours very truly, CHARLES A. GRADDICK Attorney General B. Frank Loeb B. FRANK LOEB Assistant Attorney General