Chap. 71.—An ACT to provide for the dispesition of surplus from the proceeds of
trustees’ sales under deeds of trusts in cases where such sales are held after the
death of the grantor or his successor in title. [fH B 156]

Approved February 25, 1942

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

Section 1. Whenever the grantor, or his successor in title, in any
deed of trust by which any real property is conveyed 1 in trust to secure
debts or indemnify securities, dies prior to the trustee’s sale held pursuant
to such deed of trust, and such deed of trust contains no definite provision
for the distribution of any surplus in the event of the death of the grantor
or his successors in title prior to the trustee’s sale held pursuant to such
deed of trust, any surplus of the proceeds of such sale remaining in the
hands of the trustee, after discharging the expenses of executing the
trust, all tax liens upon the property sold, and all debts and obligations
secured by such deed of trust, shall be paid by the trustee to the personal
representative of such decedent.

Section 2. Any funds so coming into the hands of such personal
representative shall constitute assets for the payment by him first, of all
existing liens against the property foreclosed in the order of their priority,
and secondly, of any debts and demands, against the decedent’s estate, re-
maining unsatisfied after the personal estate has been exhausted. Any
surplus of the funds so paid to the personal representative and remaining
in his hands after the satisfaction of all debts and demands against the
estate shall be paid over by him, if the decedent died intestate, as to the
real property embraced in said deed of trust, to the heirs at law of such
decedent, or their successors in title, and if such decedent died testate as
to the real: property embraced in said deed of trust, then such surplus
shall be paid to the persons entitled to such real property under the terms
of the decedent’s will, or to their successors in title.

2. An emergency eixsts and this act is in force from its passage.