CHAPTER 501

An Act to amend and reenact § 55-59, as amended, of the Code of
Virginia, relating to construction of deed of trust and duties and

rights of parties.
ohte of P [H 518}

Approved March 31, 1964

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 grant-
or, 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 in the city or county
ain which the property or the greater part thereof lies, or in the corporate
limits of any city surrounded by or contiguous to such county, or in the
case of annexed land, in the county of which the land was formerly a part,
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 herewith 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,
at be retained by the trustee as his compensation in connection with that

é.

(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, 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
oe upon the grantor’s equity, without actual notice thereof prior to dis-

ibution.
(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
a8 good and sufficient deed of release at the grantor’s own proper costs and

rges.

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.