Chap. 511.—An ACT to amend and re-enact an act entitled an act to amend and
re-enact section 2616 and section 2620 of an act entitled an act to revise, ar-
range, and consolidate into a code the general statutes of the Commonwealth,
approved May 16, 1887, approved 23d February, 1888, and as further amended
by an act approved Sth March, 1888, so as to authorize the encumbrance of the
lands of infants and insane persons for the purpose of improving the same.

Approved April 2, 1902.

1. Be it enacted by the general assembly of Virginia, That sections
iwenty-six hundred and sixteen and twenty-six hundred and twenty of
an act entitled an act to revise, arrange, and consolidate into a code the
general statutes of the Commonwealth, approved May sixteenth, eighteen
hundred and eighty-seven, approved twenty-third February, eighteen
hundred and eighty-eight, ‘and as further amended by an act approved
fifth March, eighteen hundred and eighty-eight, be, and they are hereby,
amended and re-enacted so as to read as follows:

§ 2616. If the guardian of any minor, or the committee of any insane
person, think that the interests of the ward or insane person will be pro-
moted by the sale of his or her estate, or estate in which he or she 1s in-
terested with others, infants or adults; or if it be real estate, by an ex-
change of such real estate for other real estate, or by encumbering such
real estate for the purpose of borrowing money to be used to erect build-
ings or other improvements on the same; or if the trustee of any estate,
or any person interested in any estate in trust, whether he or she or they
be interested with others or not, think the interests of those for whom the
estate is held will be promoted by a sale thereof; or if it be real estate bv
an exchange thereof for other real estate, or by encumbering such real
estate for the purpose of borrowing money to be used to erect buildings
or other improvements on the same, such guardian, committee, trustec.
or beneficiary. whether. the estate of the minor, or insane person, or of
any of the persons interested, be absolute or limited, and whether there
be or be not limited thereon any other estate, vested or contingent, and
whether the guardian, committee, or trustee, or the minor or minors,
insane person or persons, or any of the persons interested, reside in this
State or not, may, for the purpose of obtaining such sale, exchange, or
encumbrance, file a bill in equity in the circuit court of the county or the
circuit or corporation court of the corporation in which the estate pro-
posed to be sold, exchanged, or encumbered, or some part thereof may be.
stating plainly all the estate, real and personal, belonging to such infant
or infants, or insane person or persons, so held in trust, and all facts
calculated to show the propriety of the sale, exchange, or encumbrance.

The bill shall be verified by the oath of the plaintiff; and the infant
or infants, insane person or persons, or the beneficiaries in such trust,
and the trustee (when not plaintiff), and all others interested, shall be
made defendants; and also where there is an infant or infants, or insane
defendant or defendants, all those who would be his or her or their heirs,
or distributee or distributees, if he, she, or they were dead.

§ 2620. If it be clearly shown, independently of any admissions in the
answers, that the interests of the infant or infants, insane person or per-
sons, or beneficiaries in the trust, as the case may be, will be promoted,
and the court is of opinion that the rights of no person will be violated
thereby, it may decree a sale of said estate, or any part thereof; or if it
be real estate, an exchange thereof for other real estate, taking for the
purchase money when sale is on credit ample security; and if the sale
be of real estate, retaining a lien thereon—or the court may decree that
the real estate may be encumbered for the purpose of borrowing money
to be used to erect buildings or other improvements on said real estate
upon such terms and conditions as may appear proper: provided, that
when a decree is sought to encumber real estate by borrowing money to
be used in erecting buildings or other improvements on same, the court
shall first ascertain the present cash value of the real estate so sought to
be encumbered, and so provide in its decree that in event of a sale to
pay off the amount of money so borrowed, that said value so ascertained
(without interest) shall be preserved and paid over to the trustee,
guardian, or committee, or to such person or persons as may at the time
of sale be authorized to receive it, and the surplus, or so much thereof as
may be necessary, after paying costs of sale, and the said value of the real
estate so ascertained shall be applied to the payment of the lien so
created : provided, that in all cases where such property is encumbered as
herein provided for, the rents and profits arising from the improvements
placed upon such real estate shall be first applied to the payment of the
interest accruing upon the money so borrowed; and in the event the life
tenant shall fail to pay such accruing interest, the court may take charge
of such property and sell or rent the same as to if may appear proper:
provided, further, that any exchange of lands heretofore decreed or
ordered by court shall be as valid as if such exchange had been so deerecd
or ordered after the passage of this act.

2. This act shall be in force from its passage.