2006 Code of Virginia § 58.1-804 - Construction loan deeds of trust or mortgages

58.1-804. Construction loan deeds of trust or mortgages.

A. As used in this section, the term "construction loan deed of trust ormortgage" means a deed of trust or mortgage upon real estate, which statestherein that it is given to secure a loan for real estate construction, andthe terms of which provide that the principal sum owing under the instrumentgiving rise to the deed of trust or mortgage shall become due and payable ondemand or three years or less from the date of such instrument. The term"permanent loan deed of trust or mortgage" means a deed of trust ormortgage upon real estate, the terms of which provide that the principal sumowing under the instrument giving rise to the deed of trust or mortgage shallbecome due and payable more than three years from the date of suchinstrument, and such deed of trust or mortgage secures an instrument made bythe same persons who made the instrument which the construction loan deed oftrust or mortgage secured and substantially the same real estate is conveyedthereby.

B. The tax provided by 58.1-803 shall apply to construction loan deeds oftrust or mortgages.

C. The tax provided by 58.1-803 shall not be imposed upon a permanent loandeed of trust or mortgage, as defined herein, if such deed of trust ormortgage is recorded within three years of the date of the recordation of theconstruction loan deed of trust or mortgage, as defined herein, and the taxon the construction loan deed of trust or mortgage has been paid. However, ifthe permanent loan deed of trust or mortgage, as defined herein, secures aninstrument, the principal amount of which is more than the construction loandeed of trust or mortgage, the tax shall be imposed and calculated on theadditional amount. Such permanent loan deed of trust or mortgage shallcontain a reference to the construction loan deed of trust or mortgage andthe book and page where recorded.

(Code 1950, 58-55.1; 1970, c. 313; 1973, c. 139; 1977, c. 398; 1984, c.675.)

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