§ 6.2-409. (Effective October 1, 2010) Addition of unpaid interest toprincipal balance.
A. For the purpose of this section:
"First deed of trust" or "first mortgage" includes all deeds of trust andmortgages, and amendments thereto, that are made by the same grantor ormortgagor, secure notes held by the same holder, convey substantially thesame real estate, and are superior to all other deeds of trust or mortgageson 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 oftrust 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 ofinterest, if regularly scheduled periodic payments on an obligation securedby a first mortgage or first deed of trust on real estate are insufficient topay currently accruing interest on the then principal balance, an agreementin the contract of indebtedness, or other agreement signed by the borrower,providing for the addition of such unpaid interest to the principal balanceand the future accrual of interest on such balances, shall be enforceable aswritten.
C. 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.
§ 6.2-409. (Effective October 1, 2010) Addition of unpaid interest toprincipal balance.
A. For the purpose of this section:
"First deed of trust" or "first mortgage" includes all deeds of trust andmortgages, and amendments thereto, that are made by the same grantor ormortgagor, secure notes held by the same holder, convey substantially thesame real estate, and are superior to all other deeds of trust or mortgageson 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 oftrust 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 ofinterest, if regularly scheduled periodic payments on an obligation securedby a first mortgage or first deed of trust on real estate are insufficient topay currently accruing interest on the then principal balance, an agreementin the contract of indebtedness, or other agreement signed by the borrower,providing for the addition of such unpaid interest to the principal balanceand the future accrual of interest on such balances, shall be enforceable aswritten.
C. 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.
§ 6.2-409. (Effective October 1, 2010) Addition of unpaid interest toprincipal balance.
A. For the purpose of this section:
"First deed of trust" or "first mortgage" includes all deeds of trust andmortgages, and amendments thereto, that are made by the same grantor ormortgagor, secure notes held by the same holder, convey substantially thesame real estate, and are superior to all other deeds of trust or mortgageson 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 oftrust 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 ofinterest, if regularly scheduled periodic payments on an obligation securedby a first mortgage or first deed of trust on real estate are insufficient topay currently accruing interest on the then principal balance, an agreementin the contract of indebtedness, or other agreement signed by the borrower,providing for the addition of such unpaid interest to the principal balanceand the future accrual of interest on such balances, shall be enforceable aswritten.
C. 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.
