{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.2A-308.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.2A-308.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.2A-308.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.2A-308.html"}],"law_id":79922,"edition_id":1,"section_id":79922,"structure_id":14808,"section_number":"8.2A-308","catch_line":"Special rights of creditors","history":"1991, c. 536.","full_text":"1\n\nA creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent under any statute or rule of law, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent.2\n\nNothing in this title impairs the rights of creditors of a lessor if the lease contract (a) becomes enforceable, not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like, and (b) is made under circumstances which under any statute or rule of law apart from this title would constitute the transaction a fraudulent transfer or voidable preference.3\n\nA creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent under any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith.","order_by":null,"text":{"0":{"id":286242,"text":"A creditor of a lessor in possession of goods subject to a lease contract may treat the lease contract as void if as against the creditor retention of possession by the lessor is fraudulent under any statute or rule of law, but retention of possession in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract becomes enforceable is not fraudulent.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"next_prefix":"2"},"1":{"id":286243,"text":"Nothing in this title impairs the rights of creditors of a lessor if the lease contract (a) becomes enforceable, not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like, and (b) is made under circumstances which under any statute or rule of law apart from this title would constitute the transaction a fraudulent transfer or voidable preference.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"2":{"id":286244,"text":"A creditor of a seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor retention of possession by the seller is fraudulent under any statute or rule of law, but retention of possession of the goods pursuant to a lease contract entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"ancestry":[{"id":14808,"edition_id":1,"name":"Effect of Lease Contract","identifier":"3","label":"part","depth":2,"order_by":1,"parent_id":12736,"metadata":{},"date_created":"2026-06-26 03:50:03","date_modified":"2026-06-26 03:50:03","permalink":{"id":282493,"object_type":"structure","relational_id":14808,"identifier":"3","token":"8.2A\/3","url":"\/8.2A\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12736,"edition_id":1,"name":"Commercial Code \u2014 Leases","identifier":"8.2A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:50","date_modified":"2026-06-26 03:43:50","permalink":{"id":282367,"object_type":"structure","relational_id":12736,"identifier":"8.2A","token":"8.2A","url":"\/8.2A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":68458,"structure_id":14808,"section_number":"8.2A-301","catch_line":"Enforceability of lease contract","url":"\/8.2A-301\/","token":"8.2A\/3\/8.2A-301","metadata":false},{"id":56636,"structure_id":14808,"section_number":"8.2A-302","catch_line":"Title to and possession of goods","url":"\/8.2A-302\/","token":"8.2A\/3\/8.2A-302","metadata":false},{"id":58906,"structure_id":14808,"section_number":"8.2A-303","catch_line":"Alienability of party's interest under lease contract or of lessor's residual interest in goods; delegation of performance; transfer of rights","url":"\/8.2A-303\/","token":"8.2A\/3\/8.2A-303","metadata":false},{"id":60750,"structure_id":14808,"section_number":"8.2A-304","catch_line":"Subsequent lease of goods by lessor","url":"\/8.2A-304\/","token":"8.2A\/3\/8.2A-304","metadata":false},{"id":71591,"structure_id":14808,"section_number":"8.2A-305","catch_line":"Sale or sublease of goods by lessee","url":"\/8.2A-305\/","token":"8.2A\/3\/8.2A-305","metadata":false},{"id":76970,"structure_id":14808,"section_number":"8.2A-306","catch_line":"Priority of certain liens arising by operation of law","url":"\/8.2A-306\/","token":"8.2A\/3\/8.2A-306","metadata":false},{"id":77642,"structure_id":14808,"section_number":"8.2A-307","catch_line":"Priority of liens arising by attachment or levy on, security interests in, and other claims to goods","url":"\/8.2A-307\/","token":"8.2A\/3\/8.2A-307","metadata":false},{"id":79922,"structure_id":14808,"section_number":"8.2A-308","catch_line":"Special rights of creditors","url":"\/8.2A-308\/","token":"8.2A\/3\/8.2A-308","metadata":false},{"id":76447,"structure_id":14808,"section_number":"8.2A-309","catch_line":"Lessor's and lessee's rights when goods become fixtures","url":"\/8.2A-309\/","token":"8.2A\/3\/8.2A-309","metadata":false},{"id":67646,"structure_id":14808,"section_number":"8.2A-310","catch_line":"Lessor's and lessee's rights when goods become accessions","url":"\/8.2A-310\/","token":"8.2A\/3\/8.2A-310","metadata":false},{"id":77068,"structure_id":14808,"section_number":"8.2A-311","catch_line":"Priority subject to subordination","url":"\/8.2A-311\/","token":"8.2A\/3\/8.2A-311","metadata":false}],"previous_section":{"id":77642,"structure_id":14808,"section_number":"8.2A-307","catch_line":"Priority of liens arising by attachment or levy on, security interests in, and other claims to goods","url":"\/8.2A-307\/","token":"8.2A\/3\/8.2A-307","metadata":false},"next_section":{"id":76447,"structure_id":14808,"section_number":"8.2A-309","catch_line":"Lessor's and lessee's rights when goods become fixtures","url":"\/8.2A-309\/","token":"8.2A\/3\/8.2A-309","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.2A-308\/","history_text":"

This law was first created in 1991. The record of its establishment is cataloged in chapter 536 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1991 \u201cActs\u201d aren\u2019t available online.<\/p>","references":[{"id":77642,"section_number":"8.2A-307","catch_line":"Priority of liens arising by attachment or levy on, security interests in, and other claims to goods","order_by":null,"url":"\/8.2A-307\/"},{"id":83770,"section_number":"8.7-504","catch_line":"Rights acquired in the absence of due negotiation; effect of diversion; seller's stoppage of delivery","order_by":null,"url":"\/8.7-504\/"}],"refers_to":false,"permalink":{"id":282523,"object_type":"law","relational_id":79922,"identifier":"8.2A-308","token":"8.2A\/3\/8.2A-308","url":"\/8.2A-308\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.2A-308\/","token":"8.2A\/3\/8.2A-308","dublin_core":{"Title":"Special rights of creditors","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.2A-308","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

1.<\/span> A creditor<\/span> of a lessor in possession<\/span> of goods subject to a lease contract<\/span> may treat the lease contract<\/span> as void if as against the creditor<\/span> retention of possession<\/span> by the lessor is fraudulent under any statute<\/span> or rule of law<\/span>, but retention of possession<\/span> in good faith and current course of trade by the lessor for a commercially reasonable time after the lease contract<\/span> becomes enforceable is not fraudulent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Nothing in this title impairs the rights of creditors<\/span> of a lessor if the lease contract<\/span> (a) becomes enforceable, not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like, and (b) is made under circumstances which under any statute<\/span> or rule of law<\/span> apart from this title would constitute the transaction a fraudulent transfer<\/span> or voidable preference. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A creditor<\/span> of a seller may treat a sale or an identification of goods to a contract<\/span> for sale as void if as against the creditor<\/span> retention of possession<\/span> by the seller is fraudulent under any statute<\/span> or rule of law<\/span>, but retention of possession<\/span> of the goods pursuant to a lease contract<\/span> entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSPECIAL RIGHTS OF CREDITORS (\u00a7 8.2A-308)\n\n1. A creditor of a lessor in possession of goods subject to a lease contract may\ntreat the lease contract as void if as against the creditor retention of\npossession by the lessor is fraudulent under any statute or rule of law, but\nretention of possession in good faith and current course of trade by the lessor\nfor a commercially reasonable time after the lease contract becomes enforceable\nis not fraudulent.\n\n2. Nothing in this title impairs the rights of creditors of a lessor if the\nlease contract (a) becomes enforceable, not in current course of trade but in\nsatisfaction of or as security for a pre-existing claim for money, security, or\nthe like, and (b) is made under circumstances which under any statute or rule of\nlaw apart from this title would constitute the transaction a fraudulent transfer\nor voidable preference.\n\n3. A creditor of a seller may treat a sale or an identification of goods to a\ncontract for sale as void if as against the creditor retention of possession by\nthe seller is fraudulent under any statute or rule of law, but retention of\npossession of the goods pursuant to a lease contract entered into by the seller\nas lessee and the buyer as lessor in connection with the sale or identification\nof the goods is not fraudulent if the buyer bought for value and in good faith.\n\nHISTORY: 1991, c. 536.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}