                                 CODE OF VIRGINIA

CREDIT LINE DEED OF TRUST DEFINED; RELATIVE PRIORITY OF CREDIT LINE DEED OF
TRUST AND OTHER INSTRUMENTS OF JUDGMENT (§ 55.1-318)

A. For the purpose of this section:
			&#8220;Beneficiary&#8221; means the noteholder, lender, or other party or
parties identified in the credit line deed of trust as secured thereby. In the
case of a credit line deed of trust that identifies a party acting as agent for
all of the lenders or parties secured by a credit line deed of trust, such agent
shall be the beneficiary for purposes of this section.
			&#8220;Credit line deed of trust&#8221; means any deed of trust, mortgage,
bond, or other instrument entered into after July 1, 1982, in which title to
real property located in the Commonwealth is conveyed, transferred, encumbered,
or pledged to secure payment of money, including advances or other extensions of
credit to be made in the future.

B. A credit line deed of trust shall set forth on the front page, either in
capital letters or in language underscored, the words &#8220;THIS IS A CREDIT
LINE DEED OF TRUST.&#8221; Such phrase shall convey notice to all parties that
advances or other extensions of credit are to be made or are contemplated to be
made from time to time against the security described in the credit line deed of
trust. Such credit line deed of trust shall specify the maximum aggregate amount
of principal to be secured at any one time.

C. From the date and actual time of the recording of a credit line deed of
trust, the lien shall have priority (i) as to all other deeds, conveyances, or
other instruments, or contracts in writing, that are unrecorded as of such date
and time of recording and of which the beneficiary has no knowledge or notice
and (ii) as to judgment liens subsequently docketed, except as provided in
subsection D. Such priority shall extend to any advances or other extensions of
credit made following the recordation of the credit line deed of trust. Amounts
outstanding, together with interest, and other items provided by &#xA7;
55.1-320, shall continue to have priority until paid or curtailed.
Mechanics&#8217; liens created under Title 43 shall continue to enjoy the same
priority as created by that title. Purchase money security interests in goods
and fixtures shall have the same priority as provided in Subpart 3 (&#xA7;
8.9A-317 et seq.) of Part 3 of Title 8.9A.

D. Notwithstanding the provisions of subsections A, B, and C, if a judgment
creditor gives written notice to the beneficiary of record at the address
indicated in the credit line deed of trust, such credit line deed of trust shall
have no priority as to such judgment for any advances or extensions of credit
made under such credit line deed of trust from the day following receipt of that
notice except those that have been unconditionally and irrevocably committed
prior to such date.

E. In addition to the language specified in subsection B, the credit line deed
of trust shall set forth the name of the beneficiary and the address at which
communications may be mailed or delivered to the beneficiary. Such name or
address may be changed or modified by duly recorded instrument executed by the
beneficiary only. If the note or indebtedness secured by the credit line deed of
trust is assigned or transferred, the name and address of the new beneficiary
may be set forth in the certificate of transfer provided by &#xA7; 55.1-336.
Such original name or address, or if changed, such changed name or address,
shall be the address for delivery of notices contemplated by this section.
Receipt of notice at such address shall be deemed receipt by the beneficiary.

F. The grantor may require at any time a modification under the credit line deed
of trust whereby any priority over subsequently recorded deeds of trust is
surrendered as to future advances or other extensions of credit, which advances
or extensions of credit are in the discretion of the party secured by the credit
line deed of trust.

G. Notwithstanding the provisions of subsections A, B, and C, if a deed of trust
under this section is a subordinate mortgage, as defined in subsection A of
&#xA7; 55.1-319, upon the recording of a refinance mortgage, as defined in
subsection A of &#xA7; 55.1-319, the credit line deed of trust shall retain the
same subordinate position with respect to the refinance mortgage as it had with
the prior mortgage, as defined in subsection A of &#xA7; 55.1-319, provided that
the refinance mortgage complies with the requirements of &#xA7; 55.1-319.

HISTORY: 1982, c. 230, § 55-58.2; 1983, c. 124; 1984, c. 19; 1989, c. 346;
1997, c. 205; 2000, c. 971; 2014, c. 338; 2019, c. 712.