Allonge
(Commercial) (VA)

Summary

This template is an allonge to a promissory note that may be used by an existing Virginia lender to transfer a promissory note secured by real property in Virginia to a new lender. This template includes practical guidance and drafting notes. Promissory notes are negotiable instruments under the Virginia Uniform Commercial Code. See Va. Code Ann. § 8.3A-104. A note should be assigned by endorsement, either to a named assignee or through an endorsement in blank in which the holder of the note is whoever currently holds possession of the note. An allonge containing the words "pay to the order of" may be attached to a promissory note to achieve an endorsement. See Va. Code Ann. § 8.3A-204. In Virginia, a deed of trust is most commonly used to secure a loan on commercial real estate. Va. Code Ann. § 55.1-316. Trustee requirements are set forth in Va. Code Ann. § 55.1-317 and include a requirement that a trustee under a Virginia deed of trust must be a resident of the Commonwealth or an entity organized under its laws. A separate assignment of the deed of trust should be recorded in the county land records where the deed of trust was recorded. Virginia courts have held that the promise to pay a deed of trust is also a promise to pay a promissory note secured by such deed of trust. Blanton v. Keneipp, 155 Va. 668, 156 S.E. 413 (1931). For a template of a Virginia deed of trust assignment, see Assignment of Deed of Trust and Note (Commercial) (VA). For more information on commercial real estate financing transactions in Virginia, see Commercial Real Estate Financing (VA). For information on purchasing and selling commercial real estate in Virginia, see Purchasing and Selling Commercial Real Estate Resource Kit (VA). For information on recording real property documents in Virginia, see Recording Procedures (VA). For further information on promissory notes, see Promissory Notes (Acquisition Loan). For a full listing of key content covering commercial acquisition loans, see Commercial Real Estate Acquisition Loan Resource Kit. See also Junior Associate Real Estate Resource Kit (Acquisition Finance).