An instrument that releases the security property from the lien created by the deed of trust

§ 55.1-346. Applicability.

The procedure authorized by this article for the release of a security interest in real property using an automated electronic recording system may be used to effect the release of a security interest regardless of when the security interest was created, assigned, or satisfied by payment made by the settlement agent. The procedure authorized by this section for the release of a security interest shall constitute an optional method of accomplishing a release of a security interest secured by property in the Commonwealth.

2006, c. 907, § 55-66.8; 2019, c. 712.

§ 55.1-347. Definitions.

As used in this article, unless the context requires otherwise:

"Day" means calendar day.

"Document" means information that is:

1. Inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form; and

2. Eligible to be recorded in the land records maintained by the clerk.

"Electronic," as defined in the Uniform Electronic Transactions Act (§ 59.1-479 et seq.), means relating to technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar capabilities.

"Person" means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, public corporation, government, or governmental subdivision, agency, or instrumentality or any other legal or commercial entity.

"Real property" means real property that is used for residential or nonresidential purposes.

"Recording data" means the date, and deed book and page number or instrument number, that indicates where a document is recorded in the land records of the clerk of the circuit court pursuant to Chapter 6 (§ 55.1-600 et seq.).

"Secured creditor" means a person that holds or is the beneficiary of a security interest or that is authorized both to receive payments on behalf of a person that holds a security interest in real property and to record a satisfaction of the security instrument upon receiving full performance of the secured obligation. "Secured creditor" does not include a trustee under a security instrument. "Secured creditor" also includes "lender" as used in Chapter 10 (§ 55.1-1000 et seq.) and "lien creditor" and "servicer" as defined in § 55.1-339.

"Secured obligation" means an obligation the payment or performance of which is secured by a security interest.

"Security instrument" means an agreement, however denominated, that creates or provides for a security interest, whether or not it also creates or provides for a lien on personal property.

"Security interest" means an interest in real property created by a security instrument, securing payment, or performance of an obligation and includes a mortgage or deed of trust.

"Sign" means, with present intent to authenticate, accept, or adopt a document:

1. To execute or adopt a tangible symbol; or

2. To attach to or logically associate with the document an electronic sound, symbol, or process.

"State" means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.

"Submit for recording" means to deliver, with required fees and taxes, a document sufficient to be recorded under this article to the office of the clerk of the circuit court pursuant to Chapter 6 (§ 55.1-600 et seq.).

2006, c. 907, § 55-66.9; 2019, c. 712.

§ 55.1-348. Document of rescission; effect; liability for wrongful recording.

A. As used in this section, "document of rescission" means a document stating that an identified satisfaction, certificate of satisfaction, or affidavit of satisfaction of a security instrument was recorded erroneously or fraudulently, the secured obligation remains unsatisfied, and the security instrument remains in force.

B. If a person records a satisfaction, certificate of satisfaction, or affidavit of satisfaction of a security instrument in error or by fraud, the person may execute and record a document of rescission. Upon recording, the document rescinds an erroneously recorded satisfaction, certificate, or affidavit.

C. A recorded document of rescission has no effect on the rights of a person who:

1. Acquired an interest in the real property described in a security instrument after the recording of the satisfaction, certificate of satisfaction, or affidavit of satisfaction of the security instrument and before the recording of the document of rescission; and

2. Would otherwise have priority over or take free of the lien created by the security instrument under the laws of the Commonwealth.

D. A person, other than the clerk of the circuit court or any of his employees or other governmental official in the course of the performance of his recordation duties, who erroneously, fraudulently, or wrongfully records a document of rescission is subject to liability under § 55.1-339.

2006, c. 907, § 55-66.10; 2019, c. 712.

§ 55.1-349. Secured creditor to submit satisfaction for recording; liability for failure.

A. A secured creditor shall submit for recording a satisfaction of a security instrument within 90 days after the creditor receives full payment or performance of the secured obligation in accordance with subsection B of § 55.1-339. If a security instrument secures a line of credit or future advances, the secured obligation is fully performed only if, in addition to full payment, the secured creditor has received a notification requesting the creditor to terminate the line of credit or containing a statement sufficient to terminate the effectiveness of the provision for future advances in the security instrument.

B. A secured creditor who is required to submit a satisfaction of a security instrument for recording and fails to do so by the end of the period specified in subsection A is subject to liability under § 55.1-339.

2006, c. 907, § 55-66.11; 2019, c. 712.

§ 55.1-350. Form and effect of satisfaction.

A. A document is sufficient to constitute a satisfaction of a security instrument if it conforms substantially in form and content to the requirements of § 55.1-342 and it:

1. Identifies the security instrument, the original parties to the security instrument, the recording data for the security instrument, and the office in which the security instrument is recorded;

2. States that the person signing the satisfaction is the secured creditor;

3. Contains a legal description of the real property identified in the security instrument, but only if a legal description is necessary for a satisfaction to be properly indexed; otherwise, the deed book and page number or instrument number is sufficient;

4. Contains language terminating the effectiveness of the security instrument; and

5. Is signed by the secured creditor and acknowledged as required by law for a conveyance of an interest in real property.

B. The clerk of the circuit court shall accept for recording a satisfaction document, unless:

1. An amount equal to or greater than the applicable recording fees and taxes is not tendered;

2. The document is submitted by a method or in a medium not authorized by the laws of the Commonwealth; or

3. The document is not signed by the secured creditor and acknowledged as required by law for a conveyance of an interest in real property.

2006, c. 907, § 55-66.12; 2019, c. 712.

§ 55.1-351. Relation to Electronic Signatures in Global and National Commerce Act.

To the extent permitted by law, this article modifies, limits, and supersedes the Electronic Signatures in Global and National Commerce Act, 15 U.S.C. § 7001 et seq., except that nothing in this article modifies, limits, or supersedes §§ 7001(c) and 7004 of that Act or authorizes electronic delivery of any of the notices described in § 7003(b) of that Act.

2006, c. 907, § 55-66.13; 2019, c. 712.

§ 55.1-352. Uniform standards.

In consultation with the circuit court clerks, the Executive Secretary of the Supreme Court, and interested citizens and businesses, the Virginia Information Technologies Agency shall develop standards to implement electronic recording of real property documents. The Virginia Information Technologies Agency shall consider standards and practices of other jurisdictions, the most recent standards promulgated by national standard-setting bodies, such as the Property Records Industry Association, views of interested persons and other governmental entities, and needs of localities of varying sizes, population, and resources.

2005, c. 749, § 55-66.14; 2019, c. 712.

  443.110.  Partial release of certain mortgages, deeds of trust or security instruments made how — conditions — requirements. — Whenever any security instrument heretofore or hereafter executed, providing for the issue of a series of notes or bonds aggregating one hundred thousand dollars or more not including interest or interest notes or coupons secured in whole or in part by property located in this state, by its terms confers authority upon the trustee or trustees therein named, or either of them, to release the property or any part thereof encumbered by any such security instrument from the lien thereof, such release may be so made and it shall be the duty of the recorder of deeds of the county in which the property so released from such security instrument shall be situated to accept and record in the proper records any deed of release executed and duly acknowledged by such trustee, pursuant to the authority conferred by such security instrument, releasing the whole or any part of such mortgaged property; provided, however, that in the case of a security instrument which shall not have been qualified under the Federal Trust Indenture Act of 1939, as from time to time amended, no such release shall be made unless such security instrument shall contain a provision requiring that the amount due under the security instrument or the amount of money or other consideration received from the sale of the property described in such release or such portion thereof as may be stipulated in such security instrument shall be deposited with some banking firm or banking corporation or trust company named in such security instrument for the benefit of the holders of such notes or bonds, or a provision requiring that there shall have been reinvested in property subject to the lien of such security instrument an amount of money equal to the value of the property so released; provided, however, if there shall have been such reinvestments as provided by the terms of such security instrument, which shall not have been qualified under the Federal Trust Indenture Act of 1939, as from time to time amended, there shall be filed with the recorder of deeds, together with the aforesaid release, a certificate that at a meeting of the bondholders or noteholders, held at the place named in the security instrument for the payment of the principal of such bonds or notes, after publication of notice of such meeting for two weeks in some newspaper regularly published at such place, less than a majority in interest of the bonds or notes represented at such meeting voted against such release or a certificate that none of the bonds or notes were represented at such meeting.  Such certificate shall be made by the person who shall at such meeting be elected chairman thereof, and upon the filing thereof the recorder of deeds shall record said release as aforesaid; and provided further, that if the mortgaged property be subject to several security instruments, and upon the sale of only a part of the property covered by such security instruments, the amount of money or other consideration received from the sale of the property described in such release shall have been deposited with the banking firm or banking corporation or trust company named in the first security instrument for the benefit of the holders of the notes or bonds thereby secured in the order of their priority, and the excess if any, for the benefit of the holders of notes or bonds secured by the subsequent security instruments in the order of their priority, and such depositary shall so certify, then the property so sold may be released by the trustees in each of the security instruments, which confer authority upon the trustee or trustees therein named to release such property from the lien of such security instruments.


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 ☰ Revisor of Missouri

Title XXIX OWNERSHIP AND CONVEYANCE OF PROPERTY

Chapter 443

< >Effective - 28 Aug 1939
An instrument that releases the security property from the lien created by the deed of trust

  443.120.  Penalty for making false affidavit. — Any person who shall swear falsely in making any of the affidavits provided for in sections 443.060, 443.070, 443.090 and 443.100 shall be deemed to be guilty of perjury, and on conviction, shall be punished as may be provided by law for such offense.