Chap. 178.—An ACT to amend the Code of Virginia by adding a new section
numbered 6454-a, providing for the execution, filing and indexing of chattel
deeds of trust on livestock, poultry, farm machinery, and crops; prescribing
the kinds of indebtedness that may be secured by such deeds of trust and the
character of the liens created thereby; providing how such deeds of trust may
be assigned, how foreclosed, and how released; prescribing the fees to be paid
clerks of courts for certain services in connection with such deeds of trust;
and to repeal Chapter 336 of the Acts of Assembly of 1936, approved March 27,
1936, relating to borrowing money from production credit associations, and Sec-
tion 5202-a of the Code of Virginia, relating to chattel mortgages on livestock
or poultry. [S B 31]

Approved March 13, 1946

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a new section
numbered sixty-four hundred fifty-four-a, as follows:

Section 6454-a. (a) Any person, association, partnership or cor-
poration may give as security for any funds borrow ed or to be borrowed
or for any pre-existing indebtedness a chattel deed of trust upon livestock,
poultry, farm machinery, farm equipment and upon annual and peren-
nial crops and plant products, including fruit, either grown or growing
at the time of the execution of the deed of trust or to be planted or grown
within one (1) year thereafter. For the purpose of this act all such
crops shall be deemed to be personal property. All sums secured under
this act shall be evidenced by a note or notes or other writing or writings
obligatory signed by the party to be charged.

(b) Any chattel deed of trust executed pursuant to this act may
include livestock and poultry of the same class as that described in the
chattel deed of trust, acquired by the grantor subsequent to the execution
of the instrument and prior to its extinguishment, and also may include
replacements of animals in established dairy or breeding herds, increase,
issue and progeny and produce of animals and livestock which are sub-
ject to the lien of such instrument. Such chattel deed of trust may in-
clude provisions that hay, grain, food, forage, fodder or crops covered
by the lien thereof may be used and consumed in maintaining or prepar-
ing for market the livestock and poultry described therein.

(c) Chattel deeds of trust executed pursuant to this act shall be in
writing and signed and acknowledged by the grantor. The property cov-
ered by such a chattel deed of trust may be described as all that property
of a specified class so identified by reference to location, brands, marks,
numbers or otherwise as to distinguish it from other property, or it may
be described in any other manner authorized by law.

(d) Any chattel deed of trust executed pursuant to this act may
secure a pre-existing debt, advances currently made or contracted for
and future advances, whether obligatory or optional, to be made by the
beneficiary within a period of three (3) years from the date of the execu-
tion thereof but not to exceed in the aggregate at any one time outstand-
ing a maximum amount stated in the deed of trust.

Any such deed of trust may provide that the grantor or borrower
mav at any time anticipate the amount or amounts owing under said 1n-
strument. The beneficiary shall upon request of any person in interest
disclose the actual amount owing under said instrument.

Such a chattel deed of trust may also secure advances and expendi-
tures of the beneficiary for taxes, levies, insurance and repairs to or
maintenance of the property described therein, together with interest on
such advances and expenditures at the rate fixed by the terms thereof or,
if no rate therefor is specified, at the rate provided in the instrument for
the principal indebtedness secured thereby. No such chattel deed of
trust may secure any indebtedness which shall bear interest in excess of
the rate of six per centum (6%) per annum. All future advances made
within the terms of such chattel deed of trust shall be secured to the
same extent and shall have the same priority’as if made at the time of
the execution thereof.

(e) Any chattel deed of trust executed pursuant to this act shall
be a lien upon the property therein described from the time of the filing
of the same for docketing as provided in subsection (h) of this act, which
lien shall be good and valid as against subsequent purchasers and credi-
tors; provided, however, nothing herein contained shall affect or im-
pair any lien of a landlord theretofore or thereafter acquired, on any
property conveyed in such deed of trust.

In the event of a sale under a deed of trust or mortgage, of the land
upon which any such crop has been so seeded and/or may be growing,
and before said crop has been severed, such sale shall be made subject
to the said crop lien, and the rights of the holder or beneficiary of such
lien shall be protected in the same manner and to the same extent that
the rights of the tenants would be protected under similar circumstances
under the provisions of section fifty-five hundred forty of the Code of
Virginia, as amended; provided that whenever the crops are subject to
a lien of a fieri facias or attachment, whether a levy be actually made or
not, it shall be the duty of the person claiming a lien under this section,
upon the request of the sheriff, or any other party in interest, to render
to the sheriff of the county wherein the crops are grown, a complete and
itemized statement, under oath, of the claims for advances, showing the
nature of the claims, the dates of advancement and the respective amounts.
The consent of the beneficiary to a sale of a part of the property shall
not invalidate or impair the lien as to the other property covered by such
chattel deed of trust.

(zg) When chattels of the kind and class which may be subject
to a lien pursuant to this act are brought into this Commonwealth, sub-
ject to the lien of a chattel deed of trust or other chattel lien which has
been filed or recorded in another state, such lien instrument or a certi-
fied copy thereof may be filed and docketed as chattel deeds of trust pro-
vided for herein are filed and docketed in the county to which such
chattels have been moved, provided there shall be attached thereto an
affidavit of the beneficiary or mortgagees or other lienor setting forth a
brief description of the lands and premises upon which such chattels are
located within this Commonwealth. Upon the filing of such chattel lien
instrument as provided for in this section, it shall have the same force
and effect and be subject to all the terms and conditions of this act to the
same extent and in the same manner as though originally executed and
filed pursuant to this act.

(h) Chattel deeds of trust executed pursuant to this act or any
instrument intended to operate as such may be filed for docketing in the
office of the clerk of the court in which deeds are recorded for each coun-
ty or city in which the chattels or crops or any portion thereof are lo-
cated at the time of such filing.

The clerk of the circuit court in each county shall maintain a sep-
arate book to be known as the “Agricultural Chattel Deed of Trust” in
which he shall docket each instrument filed pursuant to this act and in
such docket he shall set forth the date and hour of filing, the name of
the grantor, the name of the trustee and beneficiary, the amount ad-
vanced and the limit of the indebtedness to be secured thereby and a
brief description of the chattels and crops described in the instrument
and the premises upon which the same are located and he shall retain
the instrument in his possession for future public inspection. Provided,
however, the beneficiary may withdraw the original instrument by leav-
ing a certified copy thereof with the clerk who may return the copy to
the grantor upon the release of the lien secured thereunder. The clerk
of the circuit court shall likewise maintain ‘Agricultural Chattel Deed
of Trust Index” in which he shall index alphabetically under the names
of the grantor and grantee all chattel deeds of trust filed pursuant to this
act and on which he shall note the date and hour of the filing of such
instrument. Any instrument affecting the lien of such chattel deed of
trust or its ownership may be filed for docketing in such office in which
the chattel mortgage is filed and, from the time of filing, each such in-
strument shall be good and valid as against subsequent purchasers, and
creditors and the fact and time of filing of each such instrument shall be
noted by the clerk of the court on the margin of the page on which the
chattel deed of trust is docketed.

(1) The clerk of the circuit court shall be entitled to charge and
receive for services rendered hereunder the following fees:

For filing, docketing and indexing each chattel deed of trust, one
dollar; for filing and noting each assignment instrument, seventy-five
cents; for filing, noting and indexing each extension afhdavit, fifty cents ;
for filing and noting each partial release instrument, twenty-five cents;
tor filing each full release instrument and noting the same on the docket
and index, twenty-five cents; for attesting the entry of a marginal full
release and noting the same on the index, twenty-five cents; for attesting
the entry of a marginal partial release, twenty-five cents; and for other
services relating to such instruments, the same as 1s provided by law for
similar service.

(j) Any chattel deed of trust executed pursuant to this act may be
assigned by an instrument in writing signed by the beneficiary or his
assignee, or his duly authorized agent or attorney-in-fact, setting forth
the amount of the debt as of the date of the assignment and such instru-
ment need not be acknowledged. Upon presentation of such assignment,
the clerk of the circuit court shall file the same and note on the margin
of the page on which the chattel deed of trust is docketed the fact of as-
signment, the date of the assignment, the date of the notation, the name
of the assignor, the name and address of the assignee, the amount of the
debt as of the date of the assignment; provided, however, any such chat-
tel deed of trust may be assigned by the beneficiary or his assignee by his
duly authorized agent or attorney by an entry on the margin of the page
where such chattel deed of trust is docketed, which entry shall set forth
the amount of the debt as of the date of the assignment and the address
of the assignee and shall be attested by the clerk.

(k) Any chattel deed of trust executed pursuant to this act may
be fully or partially released by an instrument in writing signed by the
beneficiary or by the assignee or by the duly authorized attorney or agent
or attorney-in-fact for such beneficiary or assignee and, upon presenta-
tion of such instrument, the clerk of the court shall file the same and note
the fact of such release and the date thereof on the margin of the page
of the book where the chattel deed of trust is docketed and, when so
noted, such release or satisfaction shall effectually release the lien of such
deed of trust according to the tenor of the release; provided, however,
any such chattel deed of trust may be fully or partially released on the
margin of the page where the same is docketed by an entry by the
beneficiary or his assignee or his duly authorized attorney, agent or
attorney-in-fact, which release shall be attested by the clerk. Each full
release shall be noted by the clerk of the court on the line of the page on
which the chattel deed of trust 1s indexed.

(1) As between the parties thereto, such chattel deeds of trust,
when filed for docketing, shall remain a lien on the property described
until the same has been paid and extinguished but, as to third parties,
shall not remain a lien for a longer period than five (5) years from its
date unless the lien thereof is extended by filing prior to the expiration
of such lien with the clerk of the court an affidavit signed by the bene-
ficiary or trustee or assignee or his duly authorized attorney, agent or
attorney-in-fact, stating the amount then secured by the lien, in which
case the said deed of trust shall remain a lien for an additional period
of five vears from the date of the filing of such affidavit but no longer.
The clerk of the court shall note such extension of the lien of any such
chattel deed of trust and the date of the filing of the extension on the
margin of the page of the book where the chattel deed of trust 1s docketed
and shall likewise index each such extension in the Agricultural Chattel
Deed of Trust Index in the same manner as 1s herein provided for the
indexing of chattel deeds of trust originally filed.

(m) If the grantor, without the consent of the beneficiary, shall
substantially injure or permit to be injured the chattels described in the
chattel deed of trust or conceal or offer to sell or otherwise dispose of
them or any substantial part thereof under claim of full ownership, or
otherwise by his wilful act or neglect substantially impair the value of
the security, except in so far as is consistent with the reasonable use
thereof. such action shall constitute a default under the terms of the
chattel deed of trust: provided, however, that unless otherwise stipulated
in the instrument, the injury or destruction of the chattels without fault
of the grantor shall not constitute a default but such injury or destruc-
tion occurring before the debt is paid in full or before final sale on fore-
closure shall not discharge the personal liability of the grantor on any
obligation secured by the chattel deed of trust.

(n) Upon default in any of the terms and provisions of such chat-
tel deed of trust, the trustee or trustees named therein or their successors
shall have the right, with process of law, immediately to take possession
of the property described and to do all things necessary to preserve the
same, and any expense incurred in connection therewith shall be in-
cluded in and be secured by the lien of such chattel deed of trust.

(o) Such chattel deeds of trust may be foreclosed in any manner
provided for the foreclosure of liens under the laws of this Common-
wealth and may be foreclosed by the trustee or trustees or their succes-
sors by sale of the property after such advertisement and in such manner
1s may be provided for in the chattel deed of trust or in such manner as
nay be provided by law for sales by trustees in deeds of trust on real
state; provided, however, that all sales under any such deed of trust
shall be made at public auction.

(p) This act shall not be construed to adversely effect or impair
he lien of or rights under any existing chattel deed of trust or crop
ten nor shall this act be construed to repeal or affect any act relating to
‘hattel deeds of trust or crop liens not herein expressly repealed.

(q) If any part or parts, section, sub-section, sentence, clause or
hrase of this act is for any reason declared unconstitutional, such de-
ision shall not affect the validity of the remaining portions of this act
vhich shall remain standing as if such act had been passed with the un-
onstitutional part or parts, section, sttb-section, sentence, clause or
hrase thereof eliminated.

2. Chapter three hundred thirty-six of the Acts of Assembly of
ineteen hundred thirty-six, approved March twenty-seven, nineteen
undred thirty-six, and section fifty-two hundred two-a of the Code of
‘irginia, are hereby repealed.