§ 8.9A-315 Secured party’s rights on disposition of collateral and in proceeds
a. Disposition of collateral; continuation of security interest or agricultural lien; proceeds. Except as otherwise provided in this title and in § 8.2-403 (2):
1. a security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien; and
2. a security interest attaches to any identifiable proceeds of collateral.
b. When commingled proceeds identifiable. Proceeds that are commingled with other property are identifiable proceeds:
1. if the proceeds are goods, to the extent provided by § 8.9A-336; and
2. if the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this title with respect to commingled property of the type involved.
c. Perfection of security interest in proceeds. A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
d. Continuation of perfection. A perfected security interest in proceeds becomes unperfected on the twenty-first day after the security interest attaches to the proceeds unless:
A. a filed financing statement covers the original collateral;
B. the proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed; and
3. the security interest in the proceeds is perfected other than under subsection (c) when the security interest attaches to the proceeds or within twenty days thereafter.
e. When perfected security interest in proceeds becomes unperfected. If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under subsection (d) (1) becomes unperfected at the later of:
1. when the effectiveness of the filed financing statement lapses under § 8.9A-515 or is terminated under § 8.9A-513; or
2. the twenty-first day after the security interest attaches to the proceeds.
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 4 times. 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. Those modifications are as follows: in 1973, chapter 509; in 1983, chapter 204; in 1996, chapter 216; in 2000, chapter 1007.
1964, c. 219, § 8.9-306; 1973, c. 509; 1983, c. 204; 1996, c. 216; 2000, c. 1007.