Chap. 336.—An ACT to permit persons, associations, partnerships, or corpora-
tions of the State of Virginia to borrow funds from production credit as-
sociations, regional agricultural credit corporation, banks for cooperatives, or
the government of the United States or any department, agency or officer
thereof, federal intermediate credit banks or any institution which has made
arrangements to discount therewith or to procure funds therefrom on the
security of the obligation of the borrower and providing a means of securing
said loans, [H B 228]

Approved March 27, 1936

1. Be it enacted by the General Assembly of Virginia, as follows:

Section 1. Any person, association, partnership or corporation may
enter into an agreement with and borrow funds from any person, firm,
partnership or corporation, or a production credit association organ-
ized under the farm credit act of one thousand nine hundred thirty-
three, a regional agricultural credit corporation, or the government
of the United States or any department, agency or officer thereof, a
federal intermediate credit bank, or any institution which has made
arrangements to discount therewith, or to procure funds therefrom
on the security of, the obligations of the borrower, and any co-
operative association or corporation composed of agricultural pro-
ducers and/or purchasers may enter into an agreement with, and
borrow from, any bank for cooperatives organized under said farm
credit act of one thousand nine hundred thirty-three and/or from any
federal intermediate credit bank, and the repayment of any funds so
borrowed, and/or of any then existing indebtedness to any such in-
stitution may be secured by a deed of trust upon personal property of
any kind, character or description owned at the time of the execution
of the deed of trust. Such deed of trust shall be a lien upon the prop-
erty therein described from the time of the docketing of such deed
of trust as provided for herein, which lien shall be good and valid
against, and superior to all rights of subsequent creditors, purchasers,
mortgagees, and other lienors and encumbrancers, and any of them.
Provided, however, that nothing herein contained shall affect or impair
any lien of a landlord on any property conveyed in such deed of trust.

Section 2. Any such deed of trust may secure the payment of
future advances to be made by the beneficiary, at its option, within a
period of three years from the execution of such deed of trust, but
not to exceed in the aggregate an amount stated in such deed of trust;
and all advances so made shall be secured by such deed of trust equally
and to the same extent as the amount originally advanced on the
security of such deed of trust. If animals and livestock are conveyed
by the deed of trust, the lien thereof shall extend to the increase of
such animals and livestock. No deed of trust conveying livestock and
hay, grain or other food stuffs shall be invalid in any particular
because provision is contained therein, or the beneficiary consents, that
the grantor may use and consume food, forage and/or fodder crops in
preserving and preparing for market the livestock covered thereby.

Section 4. Any deed of trust given under and pursuant to this act
shall be executed by the grantor and shall be acknowledged in the
same manner as deeds of trust on real property.

Section 5. (a) Any deed of trust given under and pursuant to this
act, shall be filed in the office of the clerk of the circuit court for the
county in which the property is located at the time of the execution
of such deed of trust. The circuit court clerk shall docket such instru-
ment when presented to him for that purpose, in a well bound book
to be known as the “federal farm credit lien book,” and shall alphabeti-
cally index same therein, setting forth the date of lien, the name
of the grantor, the trustee and beneficiary, the amount advanced and
the limit thereof, and a brief description of the property described
therein and the premises on which said property is located.

(b) Every assignment made of any instrument executed under
and pursuant to this act shall be filed in the office of the clerk of
the circuit court where the original instrument is docketed; and when
any such assignment is presented for filing, the said clerk of the cir-
cuit court shall enter upon the margin of the page on which is
docketed the original instrument, the names of the assignor and
assignee and the addresses of each, the amount of the debt at the
date of the assignment, the date of the execution of the assignment
and the date of filing thereof,

Section 6. The circuit court clerks shall receive a fee of one
dollar for the docketing and entering of each deed of trust filed and
docketed under and pursuant to this act, and a fee of twenty-five cents
for each assignment and each release filed and indexed pursuant to
this act.

Section 7. Any deed of trust executed under and pursuant to this
act may be assigned by an instrument in writing, signed and ac-
knowledged by the beneficiary, its agent or assignee, and upon pre-
sentation of such assignment to the circuit court clerk in the office
in which the original deed of trust is docketed, such assignment shall
be by such circuit court clerk indexed and filed and the fact thereof
shall be noted on the margin of the page in which the original deed
of trust is docketed, and such assignment shall, except as to the
parties thereto, take effect and be valid only from the time of filing
and noting as herein provided.

Section 8. Any deed of trust executed under and pursuant to this
act may be released in the same manner as the lien of a deed of trust
conveying real estate may be released.

Section 9. The lien of the deed of trust shall not be extinguished
or impaired by the removal of the encumbered property from the
county in which the deed of trust is docketed. Provided such deed
of trust, or a certified copy thereof, is docketed in the clerk’s office
of the county to which such property may be removed, within one
year after such removal.

Section 10. Upon default deeds of trust executed under and
pursuant to this act may be foreclosed in the manner provided for
in said deed of trust. Provided that all sales under such deed of trust
shall be made at public auction.

Section 11. This act shall be liberally construed to effectuate the
purposes hereof and substantial compliance herewith shall be suf-
ficient hereunder. The provisions of this act, so far as the same are
applicable, shall govern and control deeds of trust given under and
pursuant hereto, but nothing herein contained shall apply to direct
loans made by the Reconstruction Finance Corporation or the Recon-
struction Finance Corporation Mortgage Company. If any provi-
sion of this act, or the application thereof to any person or circum-
stances, is held invalid, the remainder of the act, and the application
of such provisions to other persons or circumstances, shall not be
affected thereby.

2. All Code sections and acts and parts of sections and acts incon-
sistent with this act are hereby repealed to the extent of such incon-
sistency.