                                 CODE OF VIRGINIA

CONSTRUCTION LOAN DEEDS OF TRUST OR MORTGAGES (§ 58.1-804)

A. As used in this section, the term &#8220;construction loan deed of trust or
mortgage&#8221; means a deed of trust or mortgage upon real estate, which states
therein that it is given to secure a loan for real estate construction, and the
terms of which provide that the principal sum owing under the instrument giving
rise to the deed of trust or mortgage shall become due and payable on demand or
three years or less from the date of such instrument. The term &#8220;permanent
loan deed of trust or mortgage&#8221; means a deed of trust or mortgage upon
real estate, the terms of which provide that the principal sum owing under the
instrument giving rise to the deed of trust or mortgage shall become due and
payable more than three years from the date of such instrument, and such deed of
trust or mortgage secures an instrument made by the same persons who made the
instrument which the construction loan deed of trust or mortgage secured and
substantially the same real estate is conveyed thereby.

B. The tax provided by &#xA7; 58.1-803 shall apply to construction loan deeds of
trust or mortgages.

C. The tax provided by &#xA7; 58.1-803 shall not be imposed upon a permanent
loan deed of trust or mortgage, as defined herein, if such deed of trust or
mortgage is recorded within three years of the date of the recordation of the
construction loan deed of trust or mortgage, as defined herein, and the tax on
the construction loan deed of trust or mortgage has been paid. However, if the
permanent loan deed of trust or mortgage, as defined herein, secures an
instrument, the principal amount of which is more than the construction loan
deed of trust or mortgage, the tax shall be imposed and calculated on the
additional amount. Such permanent loan deed of trust or mortgage shall contain a
reference to the construction loan deed of trust or mortgage and the book and
page where recorded.

HISTORY: Code 1950, § 58-55.1; 1970, c. 313; 1973, c. 139; 1977, c. 398; 1984,
c. 675.