6.1-330.69 - (Repealed effective October 1, 2010) Certain contracts enforced as agreed therein; definition of terms.
§ 6.1-330.69. (Repealed effective October 1, 2010) Certain contracts enforcedas agreed therein; definition of terms.
A. Notwithstanding the provisions of §§ 6.1-330.53, 6.1-330.55 and 6.1-330.62or any other law relating to interest or usury, contracts made for the loanof money, secured or to be secured by a first deed of trust or first mortgageon real estate, or by a first priority security interest in the stock of aresidential cooperative housing corporation, may be enforced as agreed in thecontract of indebtedness, or other agreement signed by the borrower.
B. For the purpose of this section and §§ 6.1-330.71 and 6.1-330.81:
1. Real estate shall be deemed to include a leasehold estate of not less thantwenty-five years.
2. An interest rate which varies in accordance with any exterior standard, orwhich cannot be ascertained from the contract without reference to anyexterior circumstances or documents, shall be enforceable as agreed in thecontract of indebtedness or other signed agreement.
3. The terms "first deed of trust" or "first mortgage" shall include alldeeds of trust and mortgages, and amendments thereto, which are made by thesame grantor or mortgagor, secure notes held by the same holder, conveysubstantially the same real estate, and are superior to all other deeds oftrust or mortgages on the real estate.
4. The terms "grantor" or "mortgagor" shall include an owner of the realestate, and spouse, who has assumed responsibility for the obligation securedby such deed of trust or mortgage.
C. Interest which is charged pursuant to a written agreement, whether or notrecorded, shall be of equal priority with the principal debt secured by themortgage or deed of trust and shall have priority as to third parties asprovided in Title 55.
D. Notwithstanding any other statute or rule of case law relating tocompounding of interest, if regularly scheduled periodic payments on anobligation secured by a first mortgage or first deed of trust on real estateare insufficient to pay currently accruing interest on the then principalbalance, an agreement in the contract of indebtedness, or other agreementsigned by the borrower, providing for the addition of such unpaid interest tothe principal balance and the future accrual of interest on such balances,shall be enforceable as written.
E. Disclosure of charges in a disclosure given to the borrower pursuant tofederal disclosure laws or regulations and acceptance of the loan proceeds bythe borrower shall be deemed an agreement signed by the borrower within themeaning of this section.
(1987, c. 622.)