CHAPTER 5

AN ACT to amend and reenact § 55-59, as amended, of the Code of Vir-
, ginia, relating to imposing and conferring upon the parties of every
deed of trust certain duties, rights and obligations as if the same were
expressly provided for by such deed. 5

[S 37]

Approved February 11, 1960

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 payment
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 any obligation
upon the grantor under the deed of trust remains undischarged.

(3) The grantor shall be deemed to covenant that he will keep the
improvements on the property in tenantable condition, whether such im-
provements 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 ad-
vanced 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 forthwith
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, * the trustee shall
advertise 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 and may
sell such property on the twenty-second day after the first advertisement or
any day thereafter. It is not * 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. Any sale of property
held less than twenty-eight days after the date of the first publication made
prior to July first, nineteen hundred sixty, in substantial conformity here-
with is hereby validated.

(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, 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.
(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 unreason-
able, when the advertisement is by publication in a newspaper the con-
tinuation 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 de-
posit 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,
to be retained by the trustee as his compensation in connection with that
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 foun
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, in-
cluding a commission to the trustee of five per centum of the gross proceeds
of sale; secondly, to discharge all taxes, levies, and assessment, with costs
and interest, including the due prorata thereof 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 as-
signs; 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 dis-
tribution.

(14) Upon discharge of all the debts, duties and obligations imposed
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.

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 circulation
in such city, is validated, provided such sale was otherwise conducted
according to law.