26-58 - Trustee who is corporate stockholder or employee or counsel to noteholder not disqualified. - Virginia Statutes

§ 26-58. Trustee who is corporate stockholder or employee or counsel tonoteholder not disqualified.

The mere fact that a trustee in a deed of trust to secure a debt due to acorporation is a stockholder, member, employee, officer or director of, orcounsel to, the corporation, does not disqualify him from exercising thepowers conferred by the trust deed nor does it render voidable a sale by suchtrustee in the exercise of the powers conferred on him by the trust deed solong as he did not participate in the corporation's decision as to the amountto be bid at the sale of the trust property. Moreover, if the lender securedby the deed of trust bids the amount secured, including interest through thedate of sale and costs of foreclosure, the trustee's participation in fixingthe bid price by the party secured shall not be deemed improper and such saleshall not be rendered voidable solely by reason of his participation. Allsales made before July 1, 1990, by such trustees by virtue of such deeds oftrust, and all deeds made by such trustees in pursuance of such sales, shallbe held, and the same are hereby declared to be, valid and effective in allrespects, if otherwise valid according to laws then in force, the same as ifsuch trustees had not been stockholders, members, employees, officers ordirectors of, or counsel to, the corporations thereby secured.

(1920, p. 502; 1932, p. 523; Michie Code 1942, § 6304b; 1990, c. 763.)