CHAPTER 674

An Act to amend and reenact § 55-59, as amended, of the Code of
Virginia, relating to deeds of trust and sales of property thereunder.

(H 695]
Approved March 31, 1956

Be it enacted by the General Assembly of Virginia:

1. That § 55-59, as amended, of the Code of Virginia, be amended and
reenacted as follows: :

§ 55-59. Every deed of trust to secure debts or indemnify sureties,
except so far as may be therein otherwise provided, shall be construed to
impose and confer upon the parties thereto, and the beneficiaries there-
under, the following duties, rights and obligations in like manner as if
the same were expressly provided for by such deed of trust, namely:

(1) The deed shall be construed as given to secure the performance
of each of the covenants entered into by the grantor as well as the pay-
ment of the primary obligation.

(2) The grantor shall be deemed to covenant that he will pay all
taxes, levies, assessments and charges upon the property, including the
fees and charges of such agents or attorneys as the trustee may deem
advisable to employ at any time for the purpose of the trust, so long as
apy obligation upon the grantor under the deed of trust remains undis-
charged.

(83) The grantor shall be deemed to covenant that he will keep the
improvements on the property in tenantable condition, whether such
improvements were on the property when the deed of trust was given or
were thereafter placed thereon.

(4) The grantor shall be deemed to covenant that no waste shall be
committed or suffered upon the property.

(5) The grantor shall be deemed to covenant that in the event of his
failure to meet any obligations imposed upon him then the trustee or any
beneficiary may, at his option, satisfy the same; and the money so
advanced with interest thereon shall be a part of the debt secured by the
deed, in the event of sale to be paid next after the expenses of executing
the trust, and shall be otherwise recoverable from the grantor as a debt.

(6) In the event of default in the payment of the debt secured, or
any part thereof, at maturity, or in the payment of interest when due,
or of the breach of any of the covenants entered into or imposed upon
the grantor, then at the request of any beneficiary the trustee shall forth-
with declare all the debts and obligations secured by the deed of trust
at once due and payable and shall take possession of the property and
proceed to sell the same at auction at the premises or at such other place
as the trustee may select upon such terms and conditions as the trustee
may deem best, after first advertising the time, place and terms of sale
in such manner as the deed may provide, or, if none be provided, after
first advertising the time, place and terms of sale once a week for four
successive weeks in a newspaper published or having general circulation
in the county or city in which the property or some portion thereof is
located, it not being intended, however, to declare that other and different
advertisement may not in any case be deemed reasonable, nor to prevent
the trustee from giving the sale such additional advertisement as he
deems advisable. No notice to the grantor or his successor in title shall
be required unless required by the deed of trust.

(7) If the property or some portion thereof is located in a city, or in
a county immediately contiguous to a city of the first class, publication
of the advertisement five different times in * any newspaper published or
having general circulation in such city or county (the last insertion if
desired on the day of sale) shall be deemed adequate; it not being intended,
CH. 674] ACTS OF ASSEMBLY 1033

however, to declare that other and different advertisement may not in
any case be deemed reasonable, nor to prevent the trustee from giving
the sale such additional advertisement as he may deem advisable. The
advertisement and sale of property made prior to January one, nineteen
hundred fifty-six, in substantial conformity herewith is hereby validated.

Any sale of property located in a city, made under a deed of trust
after first advertising the time, place and terms of sale once a week for
four successive weeks in a newspaper published or having general cir-
culation in such city, is validated, provided such sale was otherwise con-
ducted according to law.

_ (8) If the deed of trust itself provides a method of advertising,
which may be done by using the words ‘“‘advertisement required” or words
of like purport, followed by the method agreed on, then no other or
different advertisement shall be necessary, beyond what the deed calls
for, though the trustee may, in his discretion, give further advertisement.

(9) The trustee may postpone the sale at his discretion, in such
case giving such notice by advertisement of such postponement as he may
deem reasonable, and, without meaning to declare any other method
unreasonable, when the advertisement is by publication in a newspaper
the continuation thereof in subsequent issues of such newspaper with a
note of such adjournment appended shall be deemed .adequate in the
absence of contrary provision in the deed of trust.

(10) The trustee may require of any bidder at any sale a cash
deposit of not exceeding one hundred dollars, (unless the deed of trust
specifies a different maximum, which may be done by the words “bidder’s
deposit of not more than... dollars may be required,” or words
of like purport), before his bid is received, which shall be refunded to the
bidder unless the property is sold to him, otherwise to be applied to his
credit in settlement or, should he fail to complete his purchase promptly,
to be applied to pay the costs and expense of sale and the balance, if
any, he retained by the trustee as his compensation in connection with

at sale.

(11) If the sale be upon credit terms the deferred purchase money

shall bear interest from the day of sale and shall be secured by a deed
of trust upon the property contemporaneous with the trustee’s deed to
the purchaser.
. (12) The clerk of the court upon admitting to record the deed of
such trustee conveying property held in trust shall note a reference to
same on the margin of the deed book where the deed or other writing
conveying the property to such trustee in trust is recorded, if the same
can be found in his office.

(13) The trustee shall receive and receipt for the proceeds of sale,
no purchaser being required to see to the application of the proceeds,
and apply the same, first, to discharge the expenses of executing the trust,
including a commission to the trustee of five per centum of the gross
proceeds of sale; secondly, to discharge all taxes, levies, and assessments,
with costs and interest, including the due pro rata for the current year;
thirdly, to discharge in the order of their priority, if any, the remaining
debts and obligations secured by the deed, with lawful interest; and,
fourthly, the residue of the proceeds shall be paid to the grantor or his
assigns; provided, however, that the trustee as to such residue shall not
be bound by any inheritance, devise, conveyance, assignment or lien
of or upon the grantor’s equity, without actual notice thereof prior to
distribution.

(14) Upon discharge of all the debts, duties and obligations im-
posed by the deed upon the grantor, including any expenses incurred
preparatory to sale, then upon the grantor’s request the trustee shall
execute and deliver a good and sufficient deed of release at the grantor’s
own proper costs and charges. .
_. Provided, however, that nothing contained herein shall apply to any
eg pending in any court of this State as of the effective date of
48 act.