Chap. 324.—An ACT to amend and re-enact section 5167 of the Code of Hy nein,
relating to deeds of trust. {H B 435]

Approved March 24, 1926.

1. Be it enacted by the general assembly of Virginia, That sec-
tion fifty-one hundred and sixty-seven of the Code of Virginia, as
amended by an act approved March eleventh, nineteen hundred and
twenty-two, in reference to recordation of deeds of trust, be amended
and re-enacted so as to read as follows:

Section 5167. How such deed of trust construed and effect of
certain words therein; duties, rights and obligations of the parties
and beneficiaries; duties of clerks upon recordation.—Every deed
of trust to secure debts or indemnify sureties, except so far as may
be therein otherwise provided, shall be construed to impose and confer
upon the parties thereto, and the beneficiaries thereunder, the fol-
lowing duties, rights and obligations, in like manner as if the same
were expressly provided for by such deed of trust, namely:

(1) The deed shall be construed as given to secure the perform-
ance of each of the covenants entered into by the grantor as well as
the payment of the primary obligation.

(2) The grantor shall be deemed to covenant that he will pay all
taxes, levies, assessments and charges upon the property, including
the fees and charges of such agents or attorneys as the trustee may
deem advisable to employ at any time for the purposes of the trust,
so long as any obligation upon the grantor under the deed of trust
remains undischarged.

(3) The grantor shall’be deemed to covenant that he will keep
the improvements on the property in tenantable condition, whether
such improvements were on the property when the deed of trust was
given or were thereafter placed thereon.

(4) The grantor shall be deemed to covenant that no waste shall
be committed or suffered upon the property.

(S) The grantor shall be deemed to covenant that in the event
of his failure to meet any obligations imposed upon him then the
trustee or any beneficiary may, at his option, satisfy the same; and
the money so advanced with interest thereon shall be a part of the
debt secured by the deed, in the event of sale to be paid next after
the expenses of executing the trust, and shall be otherwise recoverable
from the grantor as a debt.

(6) In the event of default in the payment of the debt secured,
or any part thereof, at maturity, or in the payment of interest when
due, or of the breach on any of the covenants entered into or imposed
upon the grantor, then at the request of any beneficiary the trustee
shall forthwith declare all the debts and obligations secured by the
deed of trust at once due and payable, shall take possession of the
property and proceed to sell the same at auction at the premises (or
at such other place as the trustee may select) upon such terms and
conditions as the trustee may deem best, after first advertising the
time, place and terms of sale in such manner as the deed may pro-
vide, or, if none be provided, then in such reasonable manner as the
trustee may elect, no notice to the grantor or his successor in title
being required.

(7) If the property is located in a city, or in a county in which
a city or a part thereof is located, publication of the advertisement
five times in a newspaper published in such city (the last insertion
if desired on the day of sale) shall be deemed adequate; if not being
intended, however, to declare that other and different advertisement
may not in any case be deemed reasonable, nor to prevent the trus-
tee from giving the sale such additional advertisement as he may deem
advisable.

(8) If the deed of trust itself provides a method of advertising,
which may be done by using the words ‘advertisement required,’’
or words of like purport, followed by the method agreed on, then no
other of different advertisement shall be necessary, beyond what the
deed calls for, though the trustee may, in his discretion, give further
advertisement.

(9) The trustee may postpone the sale at his discretion, in such
case giving such notice or advertisement of such postponement as
he may deem reasonable. Without meaning to declare any other
method unreasonable, when the advertisement is by publication in a
newspaper the continuation thereof in the subsequent issues of such
newspaper with a note of such adjournment appended shall be deemed
adequate in the absence of contrary provision in the deed of trust.

(10) The trustee may require of any bidder at any sale a cash
deposit of not exceeding one hundred dollars, (unless the deed of
trust specifies a different maximum, which may be done by the
words, ‘“‘bidder’s deposit of not more than......................
dollars may be required,” or words of like purport), before his bid is
received, which shall be refunded to the bidder unless the property
is sold to him, otherwise to be applied to his credit in settlement, or
should he fail to complete his purchase promptly to be applied to pay
to the costs and expenses of sale and the balance, if any, to be retained
by the trustee as his compensation in connection with that sale.

(11) If the sale be upon credit terms the deferred purchase money
shall bear interest from the day of sale and shall be secured by a deed
of trust upon the property contemporaneous with the trustee’s deed
to the purchaser. The clerk of the court upon admitting to record
the deed of such trustee conveying property held in trust shall note
a reference to same on the margin of the deed book where the deed
or other writing conveying the property to such trustee in trust is
recorded, if the same can be found in his office.

(12) The trustee shall receive and receipt for the proceeds of
sale, no purchaser being required to see to the application of the pro-
ceeds, and apply the same, first, to discharge the expenses of executing
the trust, including a commission to the trustee of five per centum of
the gross proceeds of sale; secondly, to discharge all taxes, levies, and
assessments, with costs and interest, including the due prorata thereof
for the current year; thirdly, to discharge in the order of their priority,
if any, the remaining debts and obligations secured by the deed, with
lawful interest; and, fourthly, the residue of the proceeds shall be
paid to the grantor or his assigns; provided, however, that the trustee
as to such residue shall not be bound by any inheritance, devise, con-
veyance, assignment or lien of or upon the grantor’s equity, without
actual notice thereof prior to distribution.

(13) Upon discharge of all the debts, duties and obligations im-
posed by the deed upon the grantor, including any expenses incurred
preparatory to sale, then upon the grantor’s request the trustee shall
execute and deliver a good and sufficient deed of release at the gran-
tor’s own proper costs and charges.

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

(a) The words “identified by trustee’s signature,’’ or words of
like purport, shall be construed as if the deed set forth: ‘‘all of which
said notes (or other obligations) bear the marginal signature of the
trustee for the purpose of identification but for no other purpose
whatever.”

(b) The words ‘‘deferred purchase money,” or words of like pur-
port, shall be construed as if the deed set forth: ‘‘This deed of trust
is a contemporaneous purchase money deed of trust and secures the
payment of deferred purchase money due by the grantor upon the
property hereby conveyed.”’

(c) The words ‘‘exemptions waived,” or words of like purport,
shall be construed as if the deed set forth: ‘“The grantor hereby waives
the benefit of his exemptions as to the debt hereby secured and as to
all other obligations which may be imposed upon him by the provi-
sions of this deed of trust.”’

(d) The words ‘‘subject to all upon default,’’ or words of like
purpose, shall be construed as if the deed set forth: ‘Should default
be made in the payment of any payment of any part of the debt here-
by secured, principal or interest, at the maturity of such part, or in
the event of the breach of any of the covenants entered into or im-
posed upon the grantor, then the entire obligation of this deed of
trust and the whole debt hereby secured shall, at the option of the
beneficiaries, become forthwith due and payable.”

(e) The words “renewal or extension permitted,” or words of
like purport, shall be construed as if the deed set forth: ‘The grantor
hereby consents and agrees that the debt hereby secured, or any part
thereof, may be renewed or extended beyond maturity as often as may
be desired by agreement between the creditor and any subsequent
owner of the property, and no such renewal or extension shall in any
way affect the grantor’s responsibility, whether as surety or other-
wise.’

(f) The words “right of anticipation reserved,” or words of like
purport, shall be construed as if the deed set forth: “The grantor re-
serves the right to anticipate the payment of the debt hereby se-
cured, or any part thereof which is represented by a separate note
(or other obligation) at any interest period by the payment of prin-
cipal and interest to the date of such anticipated payment only.”

(g) The words ‘‘priority in direct order of maturity,’ or words
of like purport, shall be construed as if the deed set forth: “The notes
(or other obligations) hereby secured have priority amongst them-
selves in the direct order of their maturities, each having priority
over all others falling due after its maturity.’’ And the words, “‘pri-
ority in inverse order of maturity,” or words of like purport, shall be
construed as if the deed set forth: ‘““The notes (or other obligations)
hereby secured have priority amongst themselves in the inverse order
of their maturities, each having priority over all others falling due
before its maturity.”

(h) The words ‘insurance required.............. dollars,”’ or
words of similar purport, shall be construed as if the deed set forth:
‘The grantor covenants that he will keep the improvements on the
property insured against fire in some solvent insurance company
approved by the trustee for the benefit of the beneficiaries hereunder
in the sum of at least.............. dollars, and will deposit with the
trustee the policies, with standard loss payabfe claused with full con-
tribution in favor of the trustee as his interest may appear; and the
grantor further covenants that in the event of his failure to keep the
property so insured and the policies so deposited, then the trustee or
any beneficiary may, at his option, effect such insurance and pay the
premiums thereon, and the money so paid, with interest thereon,
shall become a part of the debt hereby secured, in the event of sale
to be paid next after the expenses of executing this trust, and shall be
otherwise recoverable from the grantor as a debt; but there shall be
no obligation upon the trustee or beneficiary to effect such insurance.