55-60 - Meaning of phrases that may be included in such trust deed. - Virginia Statutes

§ 55-60. Meaning of phrases that may be included in such trust deed.

The following provisions may be incorporated in any such deed of trust in therespective short forms indicated, namely:

(1) The words "identified by trustee's signature," or words of likepurport, shall be construed as if the deed set forth: "All of which saidnotes (or other obligations) bear the marginal signature of the trustee forthe purpose of identification but for no other purpose whatever."

(2) The words "deferred purchase money," "purchase money" or words oflike purport, shall be construed as if the deed set forth: "This deed oftrust is a contemporaneous purchase money deed of trust and secures thepayment of deferred purchase money due by the grantor upon the propertyhereby conveyed." Any deed of trust securing a loan, proceeds of which areused by the borrower to acquire the secured real property, shall be deemed tobe a purchase money deed of trust.

(3) The words "exemptions waived," or words of like purport, shall beconstrued as if the deed set forth: "The grantor hereby waives the benefitof his exemptions as to the debt hereby secured and as to all otherobligations which may be imposed upon him by the provisions of this deed oftrust."

(4) The words "subject to call upon default," or words of like purport,shall be construed as if the deed set forth: "Should default be made in thepayment of any part of the debt hereby secured, principal or interest, at thematurity of such part, or in the event of the breach of any of the covenantsentered into or imposed upon the grantor, then the entire obligation of thisdeed of trust and the whole debt hereby secured shall, at the option of thebeneficiaries, become forthwith due and payable."

(5) The words "renewal or extension permitted," or words of like purport,shall be construed as if the deed set forth: "The grantor hereby consentsand agrees that the debt hereby secured, or any part thereof, may be renewedor extended beyond maturity as often as may be desired by agreement betweenthe creditor and any subsequent owner of the property, and no such renewal orextension shall in any way affect the grantor's responsibility, whether assurety or otherwise."

(5a) The words "reinstatement permitted" or words of like purport shall beconstrued as if the deed set forth: "The grantor and any other partyassuming liability hereunder hereby consent and agree that if the propertyconveyed hereby or a substantial portion thereof is transferred to anysubsequent owner, and the creditor exercises the right to accelerate thedebts secured hereby, the creditor may accept any delinquent payments orother cure of default giving rise to such acceleration from the then owner ofthe property or any other person and reinstate the indebtedness in accordancewith the schedule of maturity as of the time of acceleration or upon such newschedule as may be agreed if renewal or extension are otherwise permitted andno such reinstatement shall in any way affect the liability of such priorparties, whether as surety or otherwise."

The words "renewal, extension or reinstatement permitted," or words of likepurport, shall have the meaning ascribed to the individual words or phrasesin this subsection (5a) and in subsection (5).

(6) The words "right of anticipation reserved," or words of like purport,shall be construed as if the deed set forth: "The grantor reserves the rightto anticipate the payment of the debt hereby secured, or any part thereofwhich is represented by a separate note (or other obligation) at any interestperiod by the payment of principal and interest to the date of suchanticipated payment only."

(7) The words "priority in direct order of maturity," or words of likepurport shall be construed as if the deed set forth: "The notes (or otherobligations) hereby secured have priority amongst themselves in the directorder of their maturities, each having priority over all others falling dueafter its maturity." And the words, "priority in inverse order ofmaturity," or words of like purport, shall be construed as if the deed setforth: "The notes (or other obligations) hereby secured have priorityamongst themselves in the inverse order of their maturities, each havingpriority over all others falling due before its maturity."

(8) The words "insurance required . . . . . . dollars," or words of similarpurport, shall be construed as if the deed set forth: "The grantor covenantsthat he will keep the improvements on the property insured against fire insome solvent insurance company approved by the trustee for the benefit of thebeneficiaries hereunder in the sum of at least . . . . . . dollars, and willdeposit with the trustee or beneficiary the policies, with standard losspayable clauses with full contribution in favor of the trustee as hisinterest may appear; and the grantor further covenants that in the event ofhis failure to keep the property so insured and the policies so deposited,then the trustee or any beneficiary may, at his option, effect such insuranceand pay the premium thereon and the money so paid, with interest thereon,shall become a part of the debt hereby secured, in the event of sale to bepaid next after the expenses of executing this trust, and shall be otherwiserecoverable from the grantor as a debt, but there shall be no obligation uponthe trustee or beneficiary to effect such insurance."

(9) The words "substitution of trustee permitted," or words of likepurport, shall be construed as if the deed set forth: "Grantor grants untothe beneficiary or beneficiaries or to a majority in amount of the holders ofthe obligations secured hereunder and to their assigns the right and power,under the provisions of § 55-59, to appoint a substitute trustee ortrustees."

(10) The words "any trustee may act," or words of similar purport, shall beconstrued as if the deed set forth: "The grantors, and all interested in theobligations hereby secured, by accepting the benefits hereof, agree that allauthority, power and discretion hereinabove granted to the trustees may beexercised by any of them, without any other, with the same effect as ifexercised jointly by all of them."

(11) The words "this is a credit line deed of trust," or words of likepurport, if in capital letters or underscored and on the first page of thedeed of trust and containing the name and address of the noteholder, shallhave the meaning set forth in § 55-58.2.

(Code 1919, § 5167; 1926, p. 593; 1940, p. 881; 1966, c. 93; 1970, c. 39;1976, c. 155; 1982, c. 230; 2004, c. 253; 2005, c. 935.)