CHAPTER 598

An Act to amend the Code of Virginia by adding thereto a new section
numbered 68-127.1, to provide for the execution of deeds of trust by
recipients of old age assistance and the redemption and foreclosure
of such deeds of trust.

[H 718]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia be amended by adding thereto a new section
numbered 63-127.1 as follows:

§ 63-127.1. Notwithstanding the provisions of § 63-127, each local
board of public welfare may, in lieu of filing the notices prescribed in
§ 63-127, require each recipient who is approved for assistance after July
1, 1960, who owns real estate, to execute a deed of trust on all such real
estate to secure the local board for all payments of assistance thereafter
made to such recipient. The local board shall cause such deed of trust to
be recorded in the office of the clerk of the court in which deeds are ad-
mitted to record in the county or city in which such real estate is located.
No recordation tax shall be charged upon such instrument, but the clerk
shall be entitled to the recordation fee, and the Welfare Department is
hereby authorized to pay such fee from its administrative fund.

Whenever the amount secured by the deed of trust herein provided
for has been paid, the owner of the property shall be entitled to a deed of
release at his own expense, provided no fee in excess of five dollars shall
be collected from the owner on account of the preparation and execution
of such deed of release.

No foreclosure shall be made under the deed of trust herein provided
for so long as such recipient is eligible for assistance. Upon the death of
any recipient, unless the amount secured thereby shall be paid within 12
months from such date, the local board shall direct the trustee to sell the
property, or so much thereof as may be necessary to satisfy the debt, which
sale shall be pursuant to the provisions of § 55-59 of the Code of Virginia,
or in accordance with the provisions of the deed of trust relating to the
procedure in case of sale. The lien created by such deed of trust shall be
prior to all other claims except prior liens, and except funeral expenses not
in excess of two hundred dollars, and except hospital bills, doctors’ bills and
medical expenses not in excess of one hundred and fifty dollars.

Nothing herein contained shall affect the operation of § 63-128. No lien
which attached prior to July 1, 1960, shall be impaired by the operation of
this section nor shall its priority be affected. The execution of such deed
of trust by the recipient shall not prohibit the local board from filing, at
any time, the notice or notices permitted under § 63-127 for the purpose of
obtaining a lien upon any property of the recipient, real or personal, not
included in the deed of trust, and enforcing the lien or liens created by the
filing of such notices.