§ 8.9A-205 Use or disposition of collateral permissible
a. When security interest not invalid or fraudulent. A security interest is not invalid or fraudulent against creditors solely because:
A. use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
B. collect, compromise, enforce, or otherwise deal with collateral;
C. accept the return of collateral or make repossessions; or
2. the secured party fails to require the debtor to account for proceeds or replace collateral.
b. Requirements of possession not relaxed. This section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.
History
This law was first created in 1964. The record of its establishment is cataloged in chapter 219 of that year’s edition of “Acts of Assembly,” the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1964 “Acts” aren’t available online. It has been modified 1 time. Those modifications are cataloged by “The Acts of Assembly,” a state publication, by year and chapter. Those modifications that can be read on the General Assembly’s website will be linked accordingly. That modification is as follows: in 2000, chapter 1007.
1964, c. 219, § 8.9-205; 1973; c. 509; 2000, c. 1007.