{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-205.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-205.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-205.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-205.html"}],"law_id":64653,"edition_id":1,"section_id":64653,"structure_id":13279,"section_number":"8.9A-205","catch_line":"Use or disposition of collateral permissible","history":"1964, c. 219, \u00a7 8.9-205; 1973; c. 509; 2000, c. 1007.","full_text":"a\n\nWhen security interest not invalid or fraudulent. A security interest is not invalid or fraudulent against creditors solely because:1\n\nthe debtor has the right or ability to:A\n\nuse, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;B\n\ncollect, compromise, enforce, or otherwise deal with collateral;C\n\naccept the return of collateral or make repossessions; orD\n\nuse, commingle, or dispose of proceeds; or2\n\nthe secured party fails to require the debtor to account for proceeds or replace collateral.b\n\nRequirements 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.","order_by":null,"text":{"0":{"id":235281,"text":"When security interest not invalid or fraudulent. A security interest is not invalid or fraudulent against creditors solely because:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":235282,"text":"the debtor has the right or ability to:","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"A"},"2":{"id":235283,"text":"use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"a1","next_prefix":"B"},"3":{"id":235284,"text":"collect, compromise, enforce, or otherwise deal with collateral;","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"4":{"id":235285,"text":"accept the return of collateral or make repossessions; or","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"5":{"id":235286,"text":"use, commingle, or dispose of proceeds; or","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D2"},"6":{"id":235287,"text":"the secured party fails to require the debtor to account for proceeds or replace collateral.","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D","next_prefix":"b"},"7":{"id":235288,"text":"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.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"D2"}},"ancestry":[{"id":13279,"edition_id":1,"name":"Effectiveness and Attachment","identifier":"1","label":"subpart","depth":3,"order_by":1,"parent_id":13278,"metadata":{},"date_created":"2026-06-26 03:44:33","date_modified":"2026-06-26 03:44:33","permalink":{"id":283895,"object_type":"structure","relational_id":13279,"identifier":"1","token":"8.9A\/2\/1","url":"\/8.9A\/2\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13278,"edition_id":1,"name":"Effectiveness of Security Agreement; Attachment of Security Interest; Rights of Parties to Security Agreement","identifier":"2","label":"part","depth":2,"order_by":1,"parent_id":13277,"metadata":{},"date_created":"2026-06-26 03:44:33","date_modified":"2026-06-26 03:44:33","permalink":{"id":283893,"object_type":"structure","relational_id":13278,"identifier":"2","token":"8.9A\/2","url":"\/8.9A\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13277,"edition_id":1,"name":"Commercial Code \u2014 Secured Transactions","identifier":"8.9A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:33","date_modified":"2026-06-26 03:44:33","permalink":{"id":283833,"object_type":"structure","relational_id":13277,"identifier":"8.9A","token":"8.9A","url":"\/8.9A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":85189,"structure_id":13279,"section_number":"8.9A-201","catch_line":"General effectiveness of security agreement","url":"\/8.9A-201\/","token":"8.9A\/2\/1\/8.9A-201","metadata":false},{"id":64911,"structure_id":13279,"section_number":"8.9A-202","catch_line":"Title to collateral immaterial","url":"\/8.9A-202\/","token":"8.9A\/2\/1\/8.9A-202","metadata":false},{"id":74128,"structure_id":13279,"section_number":"8.9A-203","catch_line":"Attachment and enforceability of security interest; proceeds, supporting obligations; formal requisites","url":"\/8.9A-203\/","token":"8.9A\/2\/1\/8.9A-203","metadata":false},{"id":61057,"structure_id":13279,"section_number":"8.9A-204","catch_line":"After-acquired property; future advances","url":"\/8.9A-204\/","token":"8.9A\/2\/1\/8.9A-204","metadata":false},{"id":78518,"structure_id":13279,"section_number":"8.9A-204.1","catch_line":"Security interests in consumer goods","url":"\/8.9A-204.1\/","token":"8.9A\/2\/1\/8.9A-204.1","metadata":false},{"id":64653,"structure_id":13279,"section_number":"8.9A-205","catch_line":"Use or disposition of collateral permissible","url":"\/8.9A-205\/","token":"8.9A\/2\/1\/8.9A-205","metadata":false},{"id":54271,"structure_id":13279,"section_number":"8.9A-206","catch_line":"Security interest arising in purchase or delivery of financial asset","url":"\/8.9A-206\/","token":"8.9A\/2\/1\/8.9A-206","metadata":false}],"previous_section":{"id":78518,"structure_id":13279,"section_number":"8.9A-204.1","catch_line":"Security interests in consumer goods","url":"\/8.9A-204.1\/","token":"8.9A\/2\/1\/8.9A-204.1","metadata":false},"next_section":{"id":54271,"structure_id":13279,"section_number":"8.9A-206","catch_line":"Security interest arising in purchase or delivery of financial asset","url":"\/8.9A-206\/","token":"8.9A\/2\/1\/8.9A-206","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-205\/","history_text":"

This law was first created in 1964. The record of its establishment is cataloged in chapter 219 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 1964 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. 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. That modification is as follows: in 2000, chapter 1007<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":283917,"object_type":"law","relational_id":64653,"identifier":"8.9A-205","token":"8.9A\/2\/1\/8.9A-205","url":"\/8.9A-205\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-205\/","token":"8.9A\/2\/1\/8.9A-205","dublin_core":{"Title":"Use or disposition of collateral permissible","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-205","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> When security interest not invalid or fraudulent. A security interest is not invalid or fraudulent against creditors<\/span> solely because: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the debtor has the right or ability to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> use, commingle, or dispose of all or part of the collateral<\/span>, including returned or repossessed goods; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> collect, compromise, enforce, or otherwise deal with collateral<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> accept the return of collateral<\/span> or make repossessions; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> use, commingle, or dispose of proceeds; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the secured party<\/span> fails to require the debtor to account for proceeds or replace collateral<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Requirements of possession<\/span> not relaxed. This section does not relax the requirements of possession<\/span> if attachment<\/span>, perfection, or enforcement of a security interest depends upon possession<\/span> of the collateral<\/span> by the secured party<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nUSE OR DISPOSITION OF COLLATERAL PERMISSIBLE (\u00a7 8.9A-205)\n\na. When security interest not invalid or fraudulent. A security interest is not\ninvalid or fraudulent against creditors solely because:\n\n 1. the debtor has the right or ability to:\n\nA. use, commingle, or dispose of all or part of the collateral, including\nreturned or repossessed goods;\n\nB. collect, compromise, enforce, or otherwise deal with collateral;\n\nC. accept the return of collateral or make repossessions; or\n\nD. use, commingle, or dispose of proceeds; or\n\n 2. the secured party fails to require the debtor to account for proceeds or\n replace collateral.\n\nb. Requirements of possession not relaxed. This section does not relax the\nrequirements of possession if attachment, perfection, or enforcement of a\nsecurity interest depends upon possession of the collateral by the secured\nparty.\n\nHISTORY: 1964, c. 219, \u00a7 8.9-205; 1973; c. 509; 2000, c. 1007.","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}}