                                 CODE OF VIRGINIA

MEANING OF PHRASES THAT MAY BE INCLUDED IN DEED OF TRUST (§ 55.1-325)

The following provisions may be incorporated in any deed of trust to secure
debts or indemnify sureties in the respective short forms indicated, namely:

1. The words &#8220;identified by trustee&#8217;s signature&#8221; or similar
words shall be construed as if the deed set forth: &#8220;All of which said
notes (or other obligations) bear the marginal signature of the trustee for the
purpose of identification but for no other purpose whatever.&#8221;

2. The words &#8220;deferred purchase money,&#8221; &#8220;purchase
money,&#8221; or similar words shall be construed as if the deed set forth:
&#8220;This deed of trust is a contemporaneous purchase money deed of trust and
secures the payment of deferred purchase money due by the grantor upon the
property hereby conveyed.&#8221; Any deed of trust securing a loan, proceeds of
which are used by the borrower to acquire the secured real property, shall be
deemed to be a purchase money deed of trust.

3. The words &#8220;exemptions waived&#8221; or similar words shall be construed
as if the deed set forth: &#8220;The grantor hereby waives the benefit of his
exemptions as to the debt hereby secured and as to all other obligations that
may be imposed upon him by the provisions of this deed of trust.&#8221;

4. The words &#8220;subject to call upon default&#8221; or similar words shall
be construed as if the deed set forth: &#8220;Should default be made in the
payment of any part of the debt hereby secured, principal or interest, at the
maturity of such part, or in the event of the breach of any of the covenants
entered into or imposed upon the grantor, then the entire obligation of this
deed of trust and the whole debt hereby secured shall, at the option of the
beneficiaries, become forthwith due and payable.&#8221;

5. The words &#8220;renewal or extension permitted&#8221; or similar words shall
be construed as if the deed set forth: &#8220;The grantor hereby consents and
agrees that the debt hereby secured, or any part thereof, may be renewed or
extended beyond maturity as often as may be desired by agreement between the
creditor and any subsequent owner of the property, and no such renewal or
extension shall in any way affect the grantor&#8217;s responsibility, whether as
surety or otherwise.&#8221;

6. The words &#8220;reinstatement permitted&#8221; or similar words shall be
construed as if the deed set forth: &#8220;The grantor and any other party
assuming liability hereunder hereby consent and agree that if the property
conveyed hereby or a substantial portion thereof is transferred to any
subsequent owner, and the creditor exercises the right to accelerate the debts
secured hereby, the creditor may accept any delinquent payments or other cure of
default giving rise to such acceleration from the then owner of the property or
any other person and reinstate the indebtedness in accordance with the schedule
of maturity as of the time of acceleration or upon such new schedule as may be
agreed if renewal or extension are otherwise permitted and no such reinstatement
shall in any way affect the liability of such prior parties, whether as surety
or otherwise.&#8221;
			The words &#8220;renewal, extension, or reinstatement permitted&#8221; or
similar words shall have the meaning ascribed to the individual words or phrases
in this subdivision and in subdivision 5.

7. The words &#8220;right of anticipation reserved&#8221; or similar words shall
be construed as if the deed set forth: &#8220;The grantor reserves the right to
anticipate the payment of the debt hereby secured, or any part thereof which is
represented by a separate note (or other obligation) at any interest period by
the payment of principal and interest to the date of such anticipated payment
only.&#8221;

8. The words &#8220;priority in direct order of maturity&#8221; or similar words
shall be construed as if the deed set forth: &#8220;The notes (or other
obligations) hereby secured have priority amongst themselves in the direct order
of their maturities, each having priority over all others falling due after its
maturity.&#8221; And the words &#8220;priority in inverse order of
maturity&#8221; or similar words shall be construed as if the deed set forth:
&#8220;The notes (or other obligations) hereby secured have priority amongst
themselves in the inverse order of their maturities, each having priority over
all others falling due before its maturity.&#8221;

9. The words &#8220;insurance required ______ dollars&#8221; or similar words
shall be construed as if the deed set forth: &#8220;The grantor covenants that
he will keep the improvements on the property insured against fire in some
solvent insurance company approved by the trustee for the benefit of the
beneficiaries hereunder in the sum of at least ______ dollars, and will deposit
with the trustee or beneficiary the policies, with standard loss payable clauses
with full contribution in favor of the trustee as his interest may appear; and
the grantor further covenants that in the event of his failure to keep the
property so insured and the policies so deposited, then the trustee or any
beneficiary may, at his option, effect such insurance and pay the premium
thereon, and the money so paid, with interest thereon, shall become a part of
the debt hereby secured, in the event of sale to be paid next after the expenses
of executing this trust, and shall be otherwise recoverable from the grantor as
a debt, but there shall be no obligation upon the trustee or beneficiary to
effect such insurance.&#8221;

10. The words &#8220;substitution of trustee permitted&#8221; or similar words
shall be construed as if the deed set forth: &#8220;Grantor grants unto the
beneficiary or beneficiaries or to a majority in amount of the holders of the
obligations secured hereunder and to their assigns the right and power, under
the provisions of &#xA7; 55.1-320, to appoint a substitute trustee or
trustees.&#8221;

11. The words &#8220;any trustee may act&#8221; or similar words shall be
construed as if the deed set forth: &#8220;The grantors, and all interested in
the obligations hereby secured, by accepting the benefits hereof, agree that all
authority, power, and discretion hereinabove granted to the trustees may be
exercised by any of them, without any other, with the same effect as if
exercised jointly by all of them.&#8221;

12. The words &#8220;this is a credit line deed of trust&#8221; or similar
words, if in capital letters or underscored and on the first page of the deed of
trust and containing the name and address of the noteholder, shall have the
meaning set forth in &#xA7; 55.1-318.

HISTORY: Code 1919, § 5167; 1926, p. 593; 1940, p. 881; Code 1950, § 55-60;
1966, c. 93; 1970, c. 39; 1976, c. 155; 1982, c. 230; 2004, c. 253; 2005, c.
935; 2019, c. 712.