A. For the purpose of this section:
"First deed of trust" or "first mortgage" includes all deeds of trust and mortgages, and amendments thereto, that are made by the same grantor or mortgagor, secure notes held by the same holder, convey substantially the same real estate, and are superior to all other deeds of trust or mortgages on the real estate.
"Grantor" or "mortgagor" includes an owner of real estate, and spouse, who has assumed responsibility for the obligation secured by such deed of trust or mortgage encumbering the real estate.
"Real estate" includes a leasehold estate of not less than 25 years.
B. Notwithstanding any other statutory or case law relating to compounding of interest, if regularly scheduled periodic payments on an obligation secured by a first mortgage or first deed of trust on real estate are insufficient to pay currently accruing interest on the then principal balance, an agreement in the contract of indebtedness, or other agreement signed by the borrower, providing for the addition of such unpaid interest to the principal balance and the future accrual of interest on such balances, shall be enforceable as written.
C. Disclosure of charges in a disclosure given to the borrower pursuant to federal disclosure laws or regulations and acceptance of the loan proceeds by the borrower shall be deemed an agreement signed by the borrower within the meaning of this section.
1987, c. 622, § 6.1-330.69; 2010, c. 794.
Structure Code of Virginia
Title 6.2 - Financial Institutions and Services
Chapter 4 - Certain Lending Practices
§ 6.2-400. Amount of late charge; when charge can be made
§ 6.2-401. Acceleration clause in note evidencing installment loan; effect of acceleration
§ 6.2-402. Notice of use of Rule of 78 rebate method
§ 6.2-404. When use of Rule of 78 prohibited or permitted
§ 6.2-405. References to sections regulating rebates of unearned interest and prepayment penalties
§ 6.2-406. Disclosure of terms of mortgage application
§ 6.2-407. Lenders to furnish borrower with copy of appraisal
§ 6.2-408. Priority of interest on debts secured by mortgage or deed of trust
§ 6.2-409. Addition of unpaid interest to principal balance
§ 6.2-410. Borrowers not to be required to employ particular professionals
§ 6.2-411. Requirements relating to insurance
§ 6.2-412. Insurance coverage under certain loans not to exceed replacement value of improvements
§ 6.2-413. Obligation of lender to reimburse unused mortgage guaranty insurance premiums
§ 6.2-414. Obligation of person maintaining escrow account to pay taxes and insurance; penalties
§ 6.2-415. Lender not to cancel insurance policy at time of refinancing under certain circumstances
§ 6.2-416. Certain mortgages not to prohibit further encumbrance of real property
§ 6.2-418. Property owner entitled to written statement of payoff amount
§ 6.2-419. Disclosure of terms of assumption
§ 6.2-420. Prepayment penalty not to be collected in certain circumstances
§ 6.2-421. Certain contracts to permit prepayment; amount of prepayment penalty
§ 6.2-422. Prepayment penalty for loan secured by home occupied by borrower
§ 6.2-425. Cardholder not liable in absence of request for, consent to issuance of, or use of card
§ 6.2-426. When request, consent, or use not condition precedent to liability
§ 6.2-427. Costs and attorney fee in suit on card; evidence of request or consent
§ 6.2-428. Production of credit card number as condition of check cashing or acceptance prohibited
§ 6.2-429. Improper use of payment device numbers
§ 6.2-430. Place where transaction occurred; federal Fair Credit Billing Act
§ 6.2-431. Certain cards excepted
§ 6.2-432. Credit card account disclosures
§ 6.2-433. Amendment to open-end credit contract or plan by bank or savings institution
§ 6.2-434. Law governing open-end credit contract or plan by bank or savings institution
§ 6.2-435. Law governing open-end credit contract or plan by seller or lender