CHAPTER 93

An Act to amend and reenact § 55-60 of the Code of Virginia, relating
to the meanings of certain phrases incorporated in deeds of trust.

[H 359]
_Approved March 2, 1966

Be it enacted by the General Assembly of Virginia:
ls That § 55-60 of the Code of Virginia be amended and reenacted as

ollows:

§ 55-60. The following provisions may be incorporated in any such
deed of trust in the respective short forms indicated, namely:

(1) 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’.

(2) The words. “deferred purchase money”, or words of like purport,
shall be construed as if the deed set forth: “This deed of trust is a con-
temporaneous purchase money deed of trust and secures the payment of
deferred purchase money due by the grantor upon the property hereby
conveyed”. a , |

(8) 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 provisions of this deed
0 st’’.

(4) The words “subject to all upon default”, or words of like purport,
shall be construed as if the deed set forth: “Should default be made in
the payment of any part of the debt hereby 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 imposed upon the grantor, then the entire obli-
gation of this deed of trust and the whole debt hereby secured shall, at
the option of the beneficiaries, become forthwith due and payable”. |

(5) 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 otherwise’.

(6) The words “right of anticipation reserved’, or words of like
purport, shal] be construed as if the deed set forth: “The grantor reserves
the right to anticipate the payment of the debt hereby secured, or any
part thereof which is represented by a separate note (or other obligation)
at any interest period by the payment of principal and interest to the
date of such anticipated payment only’”’.

(7) 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 themselves in
the direct order of their maturities, each having priority over all others
falling due after its maturity”. And the words, “priority 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”.

(8) 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 payable clauses with full contribution 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, the trustee or any beneficiary may, at his option, effect
such insurance and pay the premium 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 shal] be otherwise recoverable from the grantor as a debt, but there
shall be no obligation upon the trustee or beneficiary to effect such

(9) The words “substitution of trustee permitted”, or words of like
purport, shall be construed as if the deed set forth: “Grantor grants unto
the beneficiary or beneficiaries or to a majority in amount of the holders
of the obligations secured hereunder and to their assigns the right and
power, under the provisions of § 26-49, to appoint a substitute trustee or
trustees, tn event of the resignation, death, incapacity, disability, removal,
or absence from the State of the trustee or trustees’.