CHAPTER 39

An Act to amend and reenact § 55-66.3, as amended, of the Code of
Virginia, relating to marginal release of dceds of trust or other liens.

[H 44]
Approved February 138, 1962

Be it enacted by the General Assembly of Virginia:

1. That § 55-66.3, as amended, of the Code of Virginia, be amended and
reenacted as follows:

§ 55-66.8. When payment or satisfaction is made of a debt secured
by mortgage, deed of trust, vendor’s lien, or other lien, or when any one
or more of the obligations representing at least twenty-five per cent of
the whole amount secured by any such lien, but less than the whole number
of such obligations so secured, when the debt secured thereby is evidenced
yy two or more separate written obligations sufficiently described in the
instrument creating the lien, shall have been fully paid, the lien creditor,
unless he shall have delivered a proper release deed, shall cause such full
payment or satisfaction, or partial payment or satisfaction, as the case
may be, to be entered on the margin of the page of the book where such
encumbrance is recorded; and for any failure so to do after five days’
notice, if the obligation, or obligations, secured by such lien, and fully paid
as aforesaid, shall be left with the lien creditor, or with the clerk in whose
office such encumbrance is recorded, until the lien is released as provided
by this chapter, shall forfeit twenty dollars.

Such entry of payment or satisfaction shall be signed by the creditor or
his duly authorized agent, attorney or attorney in fact, and if such debt be
evidenced by a separate obligation the note, bond or other evidence of debt
secured by such lien, duly cancelled, shall be produced before the clerk in
whose office such encumbrance is recorded, or an affidavit shall be filed,
by the creditor, or his duly authorized agent, attorney or attorney in fact,
with such clerk, to the effect that the debt therein secured and intended
to be released or discharged has been paid to such creditor, his agent,
attorney or attorney in fact, who was, when the debt was so satisfied,
entitled and authorized to receive the same, and that such note, bond or
other evidence of the debt secured by the lien has been cancelled and
delivered to the person by whom it was paid or has been lost or destroyed
and cannot be produced as herein required; or in the event the creditor or
his duly authorized agent, attorney or attorney in fact is unable to make the
affidavit above referred to and after the creditor or his duly authorized
agent, attorney or attorney in fact has executed the entry of payment or
satisfaction above referred to, an affidavit may be filed with the clerk
by the lien debtor, or such other person as may have paid the same, to the
effect that he fully paid such note, bond or other evidence of debt and
that the same was duly cancelled and delivered to him and has been lost
or destroyed and cannot be produced. °

If such debt is not evidenced by a separate obligation an affidavit shall
be filed by the creditor, his duly authorized agent or attorney or attorney
in fact with such clerk to the effect that the debt therein secured and
intended to be released or discharged has been paid to such creditor, his
agent, attorney or attorney in fact, who was, when such debt was so
satisfied, entitled and authorized to receive the same.

And when so signed and the signature thereto attested by such clerk,
with a certificate that such note, bond or other evidence of debt duly
cancelled was produced before such clerk, or that the affidavit hereinbefore
required has been duly filed with such clerk, the same shall operate as a
release of the encumbrance as to which such payment or satisfaction is
entered and, if the encumbrance be by deed of trust or mortgage, as a
reconveyance of the legal title as fully and effectually as if such marginal
entry were a formal deed of release duly executed and recorded.

As used in this section, the terms “lien creditor’ and “creditor” shall
be construed as synonymous and shall embrace the lien creditor or his
successor in interest as evidenced by proper endorsement or assignment,
general or restrictive, upon the note, bond or other evidence of debt.