55-66.5 - Releases made by court; costs and attorney fees. - Virginia Statutes

§ 55-66.5. Releases made by court; costs and attorney fees.

A. Any person who owns or has any interest in real estate or personalproperty on which such encumbrance exists may, after 20 days' notice thereofto the person entitled to such encumbrance, apply to the circuit court of thecounty or city in whose clerk's office such encumbrance is recorded to havethe same released or discharged. Upon proof that the encumbrance has beenpaid or discharged or upon a finding by the court that more than 15 yearshave elapsed since the maturity of the lien or encumbrance, raising apresumption of payment which is not rebutted at the hearing, such court shallorder the clerk to record a certificate of satisfaction or a certificate ofpartial satisfaction which, when so recorded, shall operate as a release ofsuch encumbrance.

All releases made prior to June 24, 1944, by any court under this sectionupon such presumption of payment so arising and not rebutted shall bevalidated.

B. If the court finds that the person entitled to such encumbrance cannotwith due diligence be located, and that notice has been given such person inthe manner provided by § 8.01-319 or 55-66.10, or that tender has been madeof the sum due thereon but has been refused for any reason by the party orparties to whom due, the court may in its discretion order the sum due to bepaid into court, to be there held as provided by law, and to be paid upondemand to the person or persons entitled thereto. The court shall order thesame to be recorded as provided in subsection A hereof, which certificate ofsatisfaction or certificate of partial satisfaction shall operate as arelease of the encumbrance.

C. Upon a finding by the court that the holder of a mortgage or deed of trustwhich has been fully paid or discharged has unjustifiably and without goodcause failed or refused to release such mortgage or deed of trust, the court,in its discretion, may order that costs and reasonable attorneys fees be paidto the petitioning party. This subsection shall not preclude a separate suitby the petitioning party for actual damages sustained by reason of suchfailure or refusal to release the encumbrance.

(Code 1919, § 6456; 1926, p. 81; 1930, p. 70; 1932, p. 121; 1944, p. 199;1956, c. 426; 1975, c. 469; 1987, c. 604; 1992, c. 532; 1999, c. 66; 2006, c.907.)