CHAPTER 565

An Act to amend the Code of Virginia by adding a section numbered
55-58.1, defining “security trusts’; requiring trustees thereof to be
residents, if individuals, and to have their principal offices in this
State, if corporations; prescribing certain requirements for the recor-
dation or docketing of security trusts; and providing for certain
exceptions.
[H 618]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding a section numbered
55-58.1 as follows:

§ 55-58.1. (1) For the purposes of this article, the term “security
trust” shall include a deed of trust, mortgage, bond or other instrument,
entered into after the effective date of this article under which the title to
real and personal property, or either of them, wholly situate in and
including no property situate outside of the State of Virginia, is conveyed,
transferred, encumbered or pledged to secure the payment of money or
the performance of an obligation; provided, however, that the provisions
of this article shall not apply to supplements to existing security trust
instruments now of record executed pursuant to the provisions of said
existing security trust instruments, nor shall the article apply to security
trusts applying to property singly or jointly owned and situate partly in
this State and partly outside this State or to property situate in this State
which, together with property situate outside this State, is the security for
the performance of an obligation.

(2) No person not a resident of this State may be named or act, in
person or by agent or attorney, as the trustee of a security trust, either
individually or as one of several trustees, the other or others of which
are residents of this State. No corporation may be named or act as the
trustee or as one of the trustees of a security trust unless it is chartered
under the laws of this State or of the United States of America, and
unless its principal office is within this State.

(3) No clerk shall hereafter admit any security trust for recordation
or filing which does not state the residence address of the trustee or trus-
tees named therein; provided, however, that the county, city or town in
this State in which the said trustee resides shall be sufficient statement of
the residence address thereof; notwithstanding any other provisions of this
section, if any security trust is admitted by a clerk for recordation or
filing it shall be conclusively presumed that such security trust complies
with all the requirements of this section.