2006 Code of Virginia § 55-96 - Contracts, etc., void as to creditors and purchasers until recorded; priority of credit line deed o...

55-96. Contracts, etc., void as to creditors and purchasers until recorded;priority of credit line deed of trust.

A. 1. Every (i) such contract in writing, (ii) deed conveying any such estateor term, (iii) deed of gift, or deed of trust, or mortgage conveying realestate or goods and chattels and (iv) such bill of sale, or contract for thesale of goods and chattels, when the possession is allowed to remain with thegrantor, shall be void as to all purchasers for valuable considerationwithout notice not parties thereto and lien creditors, until and except fromthe time it is duly admitted to record in the county or city wherein theproperty embraced in such contract, deed or bill of sale may be. The factthat any such instrument is in the form of or contains the terms of aquit-claim or release shall not prevent the grantee therein from being apurchaser for valuable consideration without notice, nor be of itself noticeto such grantee of any unrecorded conveyance of or encumbrance upon such realestate goods and chattels. The mere possession of real estate shall not, ofitself, be notice to purchasers thereof for value of any interest or estatetherein of the person in possession. As to goods whose possession is retainedby a merchant-seller the provisions of subsection (2) of 8.2-402 of theUniform Commercial Code shall be controlling. This section shall not apply toany security interest in goods under the Uniform Commercial Code except asprovided in subsection (5) of 8.9-302. Any bill of sale or contract for thesale of goods or chattels when possession is allowed to remain with thegrantor shall be deemed to be duly recorded when it is filed in the samemanner as Uniform Commercial Code financing statements are filed under thecriteria and in the places established by 8.9A-501 as if the grantor were adebtor and the grantee a secured party. A recordation under the provisions ofthis section shall, when any real estate subject to the lien of any suchcontract has been annexed to or merged with an adjoining city subsequent tosuch docketing, be deemed to have been recorded in the proper clerk's officeof such city.

2. The clerk of each court in which any such instrument is by law required tobe recorded shall keep a daily index of all such instruments admitted torecord in his office, and, immediately upon admission of any such instrumentto record, the clerk shall index the same either in the daily index or theappropriate general index of his office. All instruments indexed in the dailyindex shall be indexed by the clerk in the appropriate general index within90 days after admission to record. During the period permitted for transferfrom the daily index to the general index, indexing in the daily index shallbe a sufficient compliance with the requirements of this section as toindexing.

3. a. In any circuit court in which any such instrument required to berecorded is not recorded on the same day as delivered, the clerk shallinstall a time stamp machine. The time stamp machine shall affix the currentdate and time of each delivery of any instrument delivered to the clerk forrecording that is not immediately recorded and entered into the general ordaily index.

b. In the event there is no time stamp machine, or it is not functioning, theclerk shall designate an employee to affix the current date and time of eachdelivery of any instrument delivered to the clerk for recording.

c. In any circuit court in which instruments required to be recorded are notrecorded on the same day as delivered, for purposes of subdivision 1 of thissubsection, the term "from the time it is duly admitted to record" shall bepresumed to be the date and time affixed upon the instrument by the timestamp machine or affixed by the clerk in accordance with subdivision 3 b ofthis subsection unless the clerk determines that the applicable requirementsfor recordation of the instrument have not been satisfied.

d. The provisions of subdivision 3 shall not apply to certificates ofsatisfaction or partial satisfaction or assignments of deeds of trustdelivered to the clerk's office other than by hand.

B. A credit line deed of trust, recorded pursuant to 55-58.2, shall havevalidity and priority over any (i) contract in writing, deed, conveyance orother instrument conveying any such estate or term subsequently recorded or(ii) judgment subsequently docketed as to all advances made under such creditline deed of trust from the date of recordation of such credit line deed oftrust, regardless of whether or not the particular advance or extension ofcredit has been made or unconditionally committed at the time of delivery orrecordation of such contract in writing, deed or other instrument or thedocketing of such judgment. Any judgment creditor shall have the right togive the notice contemplated by 55-58.2 and from the day following receiptof such notice, the judgment as docketed shall have priority over allsubsequent advances made pursuant to the credit line deed of trust exceptthose which have been unconditionally and irrevocably committed prior to suchdate. Mechanics' liens created under Title 43 shall continue to enjoy thesame priority as created by that title. Purchase money security interests ingoods and fixtures shall have the same priority as provided in 8.9A-317 etseq.

(Code 1919, 5194; 1922, p. 474; 1944, p. 356; 1964, cc. 219, 309, 314;1966, c. 400; 1974, c. 522; 1982, c. 230; 1984, c. 19; 1988, c. 51; 2003, c.776.)