55-58.1 - Security trusts defined; requirements for trustees and for recordation. - Virginia Statutes

§ 55-58.1. Security trusts defined; requirements for trustees and forrecordation.

(1) For the purposes of this article, the term "security trust" shallinclude a deed of trust, mortgage, bond or other instrument, entered intoafter the effective date of this article under which the title to real andpersonal property, or either of them, wholly situate in and including noproperty situate outside of the Commonwealth of Virginia, is conveyed,transferred, encumbered or pledged to secure the payment of money or theperformance of an obligation; provided, however, that the provisions of thissection shall not apply to supplements to existing security trust instrumentsnow of record executed pursuant to the provisions of said existing securitytrust instruments. This section shall not apply to security trusts applyingto property singly or jointly owned and situate partly in this Commonwealthand partly outside this Commonwealth or to property situate in thisCommonwealth which, together with property situate outside this Commonwealth,is the security for the performance of an obligation.

(2) No person not a resident of this Commonwealth may be named or act, inperson or by agent or attorney, as the trustee of a security trust, eitherindividually or as one of several trustees, the other or others of which areresidents of this Commonwealth. No corporation may be named or act as thetrustee or as one of the trustees of a security trust unless it is charteredunder the laws of this Commonwealth or of the United States of America, andunless its principal office is within this Commonwealth.

(3) No clerk shall admit any security trust for recordation which does notstate the full residence or business address of the trustee or trustees namedtherein, including street address and zip code. Notwithstanding any otherprovisions of this section, if any security trust is admitted by a clerk forrecordation it shall be conclusively presumed that such security trustcomplies with all the requirements of this section.

(4) All deeds of trusts, mortgages, bonds or other instruments recorded bythe clerk prior to January 1, 1999, without the residence or business addressof the trustee or trustees named therein shall be valid for all purposes asif such address had been named therein, if such recordation be otherwisevalid according to the law then in force, provided, that this section shallnot affect any right or remedy of any third party which accrued after therecordation of said instrument or before July 1, 1960.

(1960, c. 565; 1962, c. 156; 1966, c. 398; 1974, c. 424; 1998, c. 202.)