                                 CODE OF VIRGINIA

EFFECT OF AMENDMENT TO LOAN DOCUMENT ON DEED OF TRUST (§ 55.1-318.1)

A deed of trust that has been recorded and that states that it secures
indebtedness or other obligations under a loan document and that it also secures
indebtedness or other obligations under such loan document as it may be amended,
modified, supplemented, or restated shall secure such loan document as amended,
modified, supplemented, or restated from time to time, without the necessity of
recording an amendment to such deed of trust and without regard to whether any
such amendment, modification, supplement, or restatement may otherwise
constitute a novation of the indebtedness or other obligations under the loan
document, and shall have the same priority as the priority of the original deed
of trust recorded. The foregoing provision shall not apply to any amendment,
modification, supplement, or restatement of such loan document if (i) the deed
of trust securing such loan document conveys an interest in residential real
estate containing not more than one dwelling unit or (ii) such amendment,
modification, supplement, or restatement of such loan document (a) increases the
aggregate amount of the principal of the indebtedness secured by the original
deed of trust, (b) changes or substitutes the noteholder, lender, or agent of
any lender named in the original loan document, or (c) extends the maturity date
of the indebtedness or obligation secured if such maturity date was set forth in
the original deed of trust, and the effect of any such amendment, modification,
supplement, or restatement shall be governed by the law that would otherwise
apply without regard to this section. For the purposes of this section,
&#8220;loan document&#8221; includes a note, loan agreement, credit agreement,
or other document evidencing a loan or other indebtedness.

HISTORY: 2021, Sp. Sess. I, c. 13.