{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/64.2-1423.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/64.2-1423.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/64.2-1423.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/64.2-1423.html"}],"law_id":375917,"edition_id":2,"section_id":375917,"structure_id":53458,"section_number":"64.2-1423","catch_line":"Trustee not disqualified due to status as stockholder, employee, or officer of corporate noteholder; sale of property by trustee not voidable","history":"1920, p. 502; 1932, p. 523; Michie Code 1942, \u00a7 6304b; Code 1950, \u00a7 26-58; 1990, c. 763; 2012, c. 614.","full_text":"A\n\nThe fact that a trustee in a deed of trust to secure a debt due to a corporation is a stockholder, member, employee, officer, or director of, or counsel to, the corporation does not disqualify the trustee from exercising the powers conferred by the deed of trust, nor does it render voidable a sale by the trustee in the exercise of the powers conferred on him by the deed of trust so long as the trustee did not participate in the corporation’s decision as to the amount to be bid at the sale of the trust property.\n\nB\n\nIn addition to the provisions of subsection A, if the lender secured by the deed of trust bids the amount secured, including interest through the date of sale and costs of foreclosure, the trustee’s participation in fixing the bid price by the lender shall not be deemed improper and the sale shall not be rendered voidable solely by reason of the trustee’s participation.\n\nC\n\nAll sales made before July 1, 1990, by any trustee by virtue of a deed of trust and any deed made by the trustee in pursuance of such sales are hereby declared to be valid and effective in all respects, if otherwise valid according to laws then in force, the same as if the trustee had not been a stockholder, member, employee, officer, or director of, or counsel to, the corporation thereby secured.\n\n","order_by":null,"text":{"0":{"id":1403513,"text":"The fact that a trustee in a deed of trust to secure a debt due to a corporation is a stockholder, member, employee, officer, or director of, or counsel to, the corporation does not disqualify the trustee from exercising the powers conferred by the deed of trust, nor does it render voidable a sale by the trustee in the exercise of the powers conferred on him by the deed of trust so long as the trustee did not participate in the corporation’s decision as to the amount to be bid at the sale of the trust property.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1403514,"text":"In addition to the provisions of subsection A, if the lender secured by the deed of trust bids the amount secured, including interest through the date of sale and costs of foreclosure, the trustee’s participation in fixing the bid price by the lender shall not be deemed improper and the sale shall not be rendered voidable solely by reason of the trustee’s participation.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":1403515,"text":"All sales made before July 1, 1990, by any trustee by virtue of a deed of trust and any deed made by the trustee in pursuance of such sales are hereby declared to be valid and effective in all respects, if otherwise valid according to laws then in force, the same as if the trustee had not been a stockholder, member, employee, officer, or director of, or counsel to, the corporation thereby secured.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":53458,"edition_id":2,"name":"Appointment, Qualification, Resignation, and Removal of Fiduciaries","identifier":"1","label":"article","depth":5,"order_by":1,"parent_id":53457,"metadata":{"child_laws":26,"child_structures":0},"date_created":"2026-08-02 03:16:43","date_modified":"2026-08-02 12:37:20","permalink":{"id":1501989,"object_type":"structure","relational_id":53458,"identifier":"1","token":"64.2\/IV\/A\/14\/1","url":"\/64.2\/IV\/A\/14\/1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53457,"edition_id":2,"name":"Fiduciaries Generally","identifier":"14","label":"chapter","depth":4,"order_by":3,"parent_id":53454,"metadata":{"child_laws":33,"child_structures":2},"date_created":"2026-08-02 03:16:43","date_modified":"2026-08-02 12:37:20","permalink":{"id":1501987,"object_type":"structure","relational_id":53457,"identifier":"14","token":"64.2\/IV\/A\/14","url":"\/64.2\/IV\/A\/14\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53454,"edition_id":2,"name":"Fiduciaries","identifier":"A","label":"part","depth":3,"order_by":1,"parent_id":53453,"metadata":{"child_laws":81,"child_structures":6},"date_created":"2026-08-02 03:16:39","date_modified":"2026-08-02 12:37:19","permalink":{"id":1501817,"object_type":"structure","relational_id":53454,"identifier":"A","token":"64.2\/IV\/A","url":"\/64.2\/IV\/A\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53453,"edition_id":2,"name":"Fiduciaries and Guardians","identifier":"IV","label":"subtitle","depth":2,"order_by":4,"parent_id":53424,"metadata":{"child_laws":215,"child_structures":27},"date_created":"2026-08-02 03:16:39","date_modified":"2026-08-02 12:37:18","permalink":{"id":1501815,"object_type":"structure","relational_id":53453,"identifier":"IV","token":"64.2\/IV","url":"\/64.2\/IV\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53424,"edition_id":2,"name":"Wills, Trusts, and Fiduciaries","identifier":"64.2","label":"title","depth":1,"order_by":136,"parent_id":null,"metadata":{"child_laws":776,"child_structures":114},"date_created":"2026-08-02 03:16:27","date_modified":"2026-08-02 12:37:05","permalink":{"id":1499783,"object_type":"structure","relational_id":53424,"identifier":"64.2","token":"64.2","url":"\/64.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":375894,"structure_id":53458,"section_number":"64.2-1400","catch_line":"Authority to qualify trustee; necessity for security; notice of qualification; qualification by less than all of trustees named","url":"\/64.2-1400\/","token":"64.2\/IV\/A\/14\/1\/64.2-1400","metadata":false},{"id":375895,"structure_id":53458,"section_number":"64.2-1401","catch_line":"Jurisdiction for qualification of testamentary trustee; qualification and bond; when surety not required","url":"\/64.2-1401\/","token":"64.2\/IV\/A\/14\/1\/64.2-1401","metadata":false},{"id":375896,"structure_id":53458,"section_number":"64.2-1402","catch_line":"Jurisdiction for qualification of certain testamentary trustees and trustees generally","url":"\/64.2-1402\/","token":"64.2\/IV\/A\/14\/1\/64.2-1402","metadata":false},{"id":375897,"structure_id":53458,"section_number":"64.2-1403","catch_line":"Qualification of trustees","url":"\/64.2-1403\/","token":"64.2\/IV\/A\/14\/1\/64.2-1403","metadata":false},{"id":375898,"structure_id":53458,"section_number":"64.2-1404","catch_line":"New fiduciary appointed when authority of former revoked","url":"\/64.2-1404\/","token":"64.2\/IV\/A\/14\/1\/64.2-1404","metadata":false},{"id":375899,"structure_id":53458,"section_number":"64.2-1405","catch_line":"Court may appoint trustee in place of one named in will, deed, or other writing; management by corporate trustee outside of the Commonwealth","url":"\/64.2-1405\/","token":"64.2\/IV\/A\/14\/1\/64.2-1405","metadata":false},{"id":375900,"structure_id":53458,"section_number":"64.2-1406","catch_line":"Notice required; certain substitutions validated","url":"\/64.2-1406\/","token":"64.2\/IV\/A\/14\/1\/64.2-1406","metadata":false},{"id":375901,"structure_id":53458,"section_number":"64.2-1407","catch_line":"Who to execute the trust until new trustee appointed","url":"\/64.2-1407\/","token":"64.2\/IV\/A\/14\/1\/64.2-1407","metadata":false},{"id":375902,"structure_id":53458,"section_number":"64.2-1408","catch_line":"Circuit court may exercise same powers in suit to enforce or administer 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appointed","url":"\/64.2-1412\/","token":"64.2\/IV\/A\/14\/1\/64.2-1412","metadata":false},{"id":375907,"structure_id":53458,"section_number":"64.2-1413","catch_line":"Placing certain trust assets in designated financial institutions; waiver or reduction of bond of fiduciary","url":"\/64.2-1413\/","token":"64.2\/IV\/A\/14\/1\/64.2-1413","metadata":false},{"id":375908,"structure_id":53458,"section_number":"64.2-1414","catch_line":"Effect of orders of qualification of bank as committee or guardian","url":"\/64.2-1414\/","token":"64.2\/IV\/A\/14\/1\/64.2-1414","metadata":false},{"id":375909,"structure_id":53458,"section_number":"64.2-1415","catch_line":"Liability for losses by negligence or failure to make defense","url":"\/64.2-1415\/","token":"64.2\/IV\/A\/14\/1\/64.2-1415","metadata":false},{"id":375910,"structure_id":53458,"section_number":"64.2-1416","catch_line":"Liability of fiduciary for actions of cofiduciary","url":"\/64.2-1416\/","token":"64.2\/IV\/A\/14\/1\/64.2-1416","metadata":false},{"id":375911,"structure_id":53458,"section_number":"64.2-1417","catch_line":"How judgment may be entered against personal representative, conservator, or committee","url":"\/64.2-1417\/","token":"64.2\/IV\/A\/14\/1\/64.2-1417","metadata":false},{"id":375912,"structure_id":53458,"section_number":"64.2-1418","catch_line":"Court order for payments due from fiduciaries; effect","url":"\/64.2-1418\/","token":"64.2\/IV\/A\/14\/1\/64.2-1418","metadata":{"court_decisions":""}},{"id":375913,"structure_id":53458,"section_number":"64.2-1419","catch_line":"Execution of fiduciary bond or appointment of agent designates clerk as attorney for service of process","url":"\/64.2-1419\/","token":"64.2\/IV\/A\/14\/1\/64.2-1419","metadata":false},{"id":375914,"structure_id":53458,"section_number":"64.2-1420","catch_line":"Clerk to mail notice, process, or rule to person served","url":"\/64.2-1420\/","token":"64.2\/IV\/A\/14\/1\/64.2-1420","metadata":false},{"id":375915,"structure_id":53458,"section_number":"64.2-1421","catch_line":"What judgment or decree based upon service upon clerk shall specifically adjudicate","url":"\/64.2-1421\/","token":"64.2\/IV\/A\/14\/1\/64.2-1421","metadata":false},{"id":375916,"structure_id":53458,"section_number":"64.2-1422","catch_line":"Environmental liability of fiduciaries","url":"\/64.2-1422\/","token":"64.2\/IV\/A\/14\/1\/64.2-1422","metadata":false},{"id":375917,"structure_id":53458,"section_number":"64.2-1423","catch_line":"Trustee not disqualified due to status as stockholder, employee, or officer of corporate noteholder; sale of property by trustee not voidable","url":"\/64.2-1423\/","token":"64.2\/IV\/A\/14\/1\/64.2-1423","metadata":false},{"id":375918,"structure_id":53458,"section_number":"64.2-1424","catch_line":"Resignation by fiduciary of his trust","url":"\/64.2-1424\/","token":"64.2\/IV\/A\/14\/1\/64.2-1424","metadata":false},{"id":375919,"structure_id":53458,"section_number":"64.2-1425","catch_line":"How securities transferred to successor","url":"\/64.2-1425\/","token":"64.2\/IV\/A\/14\/1\/64.2-1425","metadata":false}],"previous_section":{"id":375916,"structure_id":53458,"section_number":"64.2-1422","catch_line":"Environmental liability of fiduciaries","url":"\/64.2-1422\/","token":"64.2\/IV\/A\/14\/1\/64.2-1422","metadata":false},"next_section":{"id":375918,"structure_id":53458,"section_number":"64.2-1424","catch_line":"Resignation by fiduciary of his trust","url":"\/64.2-1424\/","token":"64.2\/IV\/A\/14\/1\/64.2-1424","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/64.2-1423\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1990, chapter 763; in 2012, chapter 614<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1502083,"object_type":"law","relational_id":375917,"identifier":"64.2-1423","token":"64.2\/IV\/A\/14\/1\/64.2-1423","url":"\/64.2-1423\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/64.2-1423\/","token":"64.2\/IV\/A\/14\/1\/64.2-1423","dublin_core":{"Title":"Trustee not disqualified due to status as stockholder, employee, or officer of corporate noteholder; sale of property by trustee not voidable","Type":"Text","Format":"text\/html","Identifier":"\u00a7 64.2-1423","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The fact<\/span> that a trustee<\/span> in a deed of trust to secure a debt due to a corporation is a stockholder, member, employee, officer, or director of, or counsel<\/span> to, the corporation does not disqualify the trustee<\/span> from exercising the powers conferred by the deed of trust, nor does it render voidable a sale by the trustee<\/span> in the exercise of the powers conferred on him by the deed of trust so long as the trustee<\/span> did not participate in the corporation’s decision as to the amount to be bid at the sale of the trust property. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> In addition to the provisions of subsection A, if the lender secured by the deed of trust bids the amount secured, including interest through the date of sale and costs of foreclosure, the trustee<\/span>’s participation in fixing the bid price by the lender shall not be deemed improper and the sale shall not be rendered voidable solely by reason of the trustee<\/span>’s participation. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> All sales made before July 1, 1990, by any trustee<\/span> by virtue of a deed of trust and any deed made by the trustee<\/span> in pursuance of such sales are hereby declared to be valid and effective in all respects, if otherwise valid according to laws<\/span> then in force, the same as if the trustee<\/span> had not been a stockholder, member, employee, officer, or director of, or counsel<\/span> to, the corporation thereby secured. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nTRUSTEE NOT DISQUALIFIED DUE TO STATUS AS STOCKHOLDER, EMPLOYEE, OR OFFICER OF\nCORPORATE NOTEHOLDER; SALE OF PROPERTY BY TRUSTEE NOT VOIDABLE (\u00a7 64.2-1423)\n\nA. The fact that a trustee in a deed of trust to secure a debt due to a\ncorporation is a stockholder, member, employee, officer, or director of, or\ncounsel to, the corporation does not disqualify the trustee from exercising the\npowers conferred by the deed of trust, nor does it render voidable a sale by the\ntrustee in the exercise of the powers conferred on him by the deed of trust so\nlong as the trustee did not participate in the corporation’s decision as\nto the amount to be bid at the sale of the trust property.\n\nB. In addition to the provisions of subsection A, if the lender secured by the\ndeed of trust bids the amount secured, including interest through the date of\nsale and costs of foreclosure, the trustee’s participation in fixing the\nbid price by the lender shall not be deemed improper and the sale shall not be\nrendered voidable solely by reason of the trustee’s participation.\n\nC. All sales made before July 1, 1990, by any trustee by virtue of a deed of\ntrust and any deed made by the trustee in pursuance of such sales are hereby\ndeclared to be valid and effective in all respects, if otherwise valid according\nto laws then in force, the same as if the trustee had not been a stockholder,\nmember, employee, officer, or director of, or counsel to, the corporation\nthereby secured.\n\nHISTORY: 1920, p. 502; 1932, p. 523; Michie Code 1942, \u00a7 6304b; Code 1950, \u00a7\n26-58; 1990, c. 763; 2012, c. 614.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}