55-58.2 - Credit line deed of trust defined; relti!e "riorit#
of $redit line deed of trust nd ot%er instru&ents of
§ 55-58.2. Credit line deed of trust defined; relative priority of creditline deed of trust and other instruments of
1. For the purpose of this title the term !credit line deed of trust! isany deed of trust mortgage "ond or other
instrument entered into after#uly 1 1$82 in %hich title to real property located in this Common%ealth isconveyed
transferred encum"ered or pledged to secure payment of moneyincluding advances to "e made in the future "y
the noteholder named in thecredit line deed of trust.
2. & credit line deed of trust shall set forth on the front page thereofeither in capital letters or in language
underscored the %ords !'()* )* &C+,-)' .)/, -,,- 0F '+1*'.! *uch phrase shall convey notice to all
partiesthat the noteholder named therein and the grantors and other "orro%ersidentified therein have an agreement
%here"y the noteholder may ma2e orcontemplates ma2ing advances from time to time against the security
descri"edin the deed of trust. *uch deed of trust shall specify therein the ma3imumaggregate amount of principal to
"e secured at any one time.
4. From the date of the recording of a credit line deed of trust the lienthereof shall have priority 5i6 as to all other
deeds conveyances or otherinstruments or contracts in %riting %hich are unrecorded as of such dateand of
%hich the noteholder has no 2no%ledge or notice and 5ii6 as tojudgment liens su"se7uently doc2eted e3cept as
provided in su"section 8 ofthis section. *uch priority shall e3tend to any advances made follo%ing therecordation of
the credit line deed of trust. &mounts outstanding together%ith interest thereon and other items provided "y § 55-
5$ shall continue tohave priority until paid or curtailed. 9echanics: liens created under 'itle84 shall continue to
enjoy the same priority as created "y that title.;urchase money security interests in goods and fi3tures shall have
the samepriority as provided in §§ 8.$&-41< et se7.
8. /ot%ithstanding the provisions of su"sections 1 2 and 4 of this sectionif a judgment creditor gives notice to the
noteholder of record at theaddress indicated in the credit line deed of trust such credit line deed oftrust shall have
no priority as to such judgment for any advances ore3tensions of credit made under such deed of trust from the day
follo%ingreceipt of that notice e3cept those %hich have "een unconditionally andirrevoca"ly committed prior to such
5. )n addition to the language specified in su"section 1 of this section thecredit line deed of trust shall set forth the
name of the noteholder securedand the address at %hich communications may "e mailed or delivered to him.*uch
name or address may "e changed or modified "y duly recorded instrumente3ecuted "y the noteholder only. )f the
note or inde"tedness secured "y thecredit line deed of trust is assigned or transferred the name and address ofthe
ne% noteholder may "e set forth in the certificate of transfer provided"y § 55-==.>1. *uch original name or address
or if changed such changedname or address shall "e the address for delivery of notices contemplated "ythis
section. +eceipt of notice at such address shall "e deemed receipt "ythe noteholder.
=. ?+epealed.@
<. 'he grantor may re7uire at any time a modification under the credit linedeed of trust %here"y any priority over
su"se7uently recorded deeds of trustis surrendered as to future advances %hich advances are in the discretion
ofthe party secured "y the credit line deed of trust.
8. /ot%ithstanding the provisions of su"sections 1 2 and 4 of this sectionif a deed of trust under this section is a
su"ordinate mortgage as definedin § 55-58.4 upon the recording of a refinance mortgage as defined in §55-58.4
the credit line deed of trust shall retain the same su"ordinateposition %ith respect to the refinance mortgage as it
had %ith the priormortgage as defined in su"section & of § 55-58.4 provided that therefinance mortgage complies
%ith the re7uirements of § 55-58.4.
51$82 c. 24>; 1$84 c. 128; 1$88 c. 1$; 1$8$ c. 48=; 1$$< c. 2>5; 2>>>c. $<1.6
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