CHAPTER 478

An Act to amend and reenact §§ 68-127, 68-127.1 and 68-191, as amended,
of the Code of Virginia, relating to liens on property of welfare
recipients; recovery from estate of such recipients; execution of
deeds of trusts by such recipients; and the redemption and fore-
closure thereof. ,

[H 410]

Approved April 4, 1968

Be it enacted by the General Assembly of Virginia:

1. That §§ 63-127, 63-127.1 and 63-191, as amended, of the Code of
Virginia be amended and reenacted as follows:

§ 63-127. Lien on property of recipient; recovery from estate of
recipient.—Each local board of public welfare shall, for each recipient
theretofore or thereafter approved for assistance on and after July one,
nineteen hundred fifty-four, who owns real estate, prepare and acknowl-
edge as deeds are acknowledged a notice showing the name of such recipi-
ent, the rate of the grant and intervals of payment and the date of the
first payment, and shall file the same in the office of the clerk of the court
in which deeds are admitted to record in the county or city in which the
real estate is located. The clerk of court shall docket this notice as a
judgment is docketed, indicating the type of assistance received, in the
current judgment lien docket, indexing it in the name of the recipient and
in the name of the local board. In the event a portion or all of the assist-
ance theretofore received by the recipient shall be repaid, the local board
shall prepare, acknowledge and file in the same court a notice, showing
the name of recipient, the total of assistance theretofore received by
the recipient and not repaid, the date of the first payment thereafter, and
the rate of the grant and intervals of payment from that date. The clerk
of court shall docket this notice as a judgment is docketed, indicating the
type of assistance received, in the current judgment lien docket, indexing
it in the name of the recipient and in the name of the local board, and
shall mark the docket where the previous notice was docketed to indicate
that it has been superseded. The clerk of the court shall receive for his
services the regular fee allowed for docketing judgments in his office and
the Welfare Department is hereby authorized to pay such fee from its
administrative fund. The filing of a notice under the provisions of this
section shall create a lien against all real property of the recipient lying
within the county or city wherein the notice is filed in favor of the local
board; provided, however, that no such lien shall be enforced so long as
such recipient is eligible for assistance. Upon death of any recipient, the
local board of welfare having reason to believe that such recipient died
possessed of property, either real or personal, from which reimbursement
may be had, shall file notice with the clerk of the court as hereinabove
provided. The filing of such notice shall create a lien against the estate,
both real and personal, of such recipient, prior to all other claims except
prior liens and except funeral expenses not in excess of two hundred
dollars, and except hospital bills, doctors’ bills and medical expenses not
in excess of one hundred and fifty dollars. Nothing contained herein shall
affect the operation of § 63-128.
* *

*

The State Board may, by rule and regulation provide for the release
of any such lien when, in the opinion of the Board, the enforcement
thereof would not be economically feasible.

§ 63-127.1. Execution of deeds of trust by recipients; redemption
and foreclosure.—Notwithstanding the provisions of § 63-127, each local
board of public welfare may, in lieu of filing the notices prescribed in
§ 63-127, require each recipient who is approved for assistance after July
1, 1960, who owns real estate, to execute a deed of trust on all such real
estate to secure the local board for all payments of assistance thereafter
made to such recipient. The local board shall cause such deed of trust to
be recorded in the office of the clerk of the court in which deeds are
admitted to record in the county or city in which such real estate is
located. No recordation tax shall be charged upon such instrument, but
the clerk shall be entitled to the recordation fee, and the welfare depart-
ment is hereby authorized to pay such fee from its administrative fund.

Whenever the amount secured by the deed of trust herein provided
for has been paid, the owner of the property shall be entitled to a deed of
release at his own expense, provided no fee in excess of five dollars shall
be collected from the owner on account of the preparation and execution
of such deed of release.

No foreclosure shall be made under the deed of trust herein provided
for so long as such recipient is eligible for assistance. Upon the death of
any recipient, unless the amount secured thereby shall be paid within 12
months from such date, the local board shall direct the trustee to sell the
property, or so much thereof as may be necessary to satisfy the debt,
which sale shall be pursuant to the provisions of § 55-59 of the Code of
Virginia, or in accordance with the provisions of the deed of trust relating
to the procedure in case of sale. The lien created by such deed of trust
shall be prior to all other claims except prior liens, and except funeral ex-
penses not in excess of two hundred dollars, and except hospital bills,
doctors’ bills and medical expenses not in excess of one hundred and
fifty dollars.

Nothing herein contained shall affect the operation of § 63-128. No
lien which attached prior to July 1, 1960, shall be impaired by the opera-
tion of this section nor shall its priority be affected. The execution of such
deed of trust by the recipient shall not prohibit the loca] board from
filing, at any time, the notice or notices permitted under § 63-127 for the
purpose of obtaining a lien upon any property of the recipient, real or
personal, not included in the deed of trust, and enforcing the lien or liens
created by the filing of such notices.

§ 63-191. Lien on property of recipient; recovery from estate of
recipient.—Each local board of public welfare shall, for each recipient
theretofore or thereafter approved for aid on and after July one, nineteen
hundred fifty-four, who owns real estate, prepare and acknowledge as deeds
are acknowledged a notice showing the name of such recipient, the rate
of the grant and intervals of payment and the date of the first payment,
and shall file the same in the office of the clerk of the court in which deeds
are admitted to record in the county or city in which the real estate is
located. The clerk of court shall docket this notice as a judgment is docketed
indicating the type of aid received in the current judgment lien docket,
indexing it in the name of the recipient and in the name of the local board.
In the event a portion or all of the aid theretofore received by the recipient
shall be repaid, the local board shall prepare, acknowledge and file in the
same court a notice, showing the name of recipient, the total of aid there-
tofore received by the recipient and not repaid, the date of the first
payment thereafter, and the rate of the grant and intervals of payment
from that date. The clerk of court shall docket this notice as a judgment is
docketed, indicating the type of aid received, in the current judgment lien
docket, indexing it in the name of the recipient and in the name of the
local board, and shall mark the docket where the previous notice was
docketed to indicate that it has been superseded. The clerk of the court
shall receive for his services the regular fee allowed for docketing judg-
ments 1n his office and the Welfare Department is hereby authorized to pay
such fee from its administrative fund. The filing of a notice under the
provisions of this section shall create a lien against all real property of the
recipient lying within the county or city wherein the notice is filed in
favor of the local board; provided, however, that no such lien shall be
entorced so long as such recipient is eligible for assistance. Upon death
of any recipient, the local board of welfare having reason to believe that
such recipient died possessed of property, either real or personal, from
which reimbursement may be had, shall file notice with the clerk of the
court as hereinabove provided. The filing of such notice shall create a lien
against the estate, both real and personal, of such recipient, prior to all
other claims except prior liens and except funeral expenses not in excess
of two hundred dollars, and except hospital bills, doctors’ bills and medical
expenses not in excess of one hundred and fifty dollars. Nothing contained
herein shall affect the operation of § 63-192.

*

The Commission may, by rule and regulation provide for the release

of uny such lien when, in the opinion of the Board, the enforcement thereof
would not be economically feasible.