{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-207.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-207.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-207.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-207.html"}],"law_id":62908,"edition_id":1,"section_id":62908,"structure_id":16040,"section_number":"8.9A-207","catch_line":"Rights and duties of secured party having possession or control of collateral","history":"1964, c. 219, \u00a7 8.9-207; 2000, c. 1007; 2004, c. 200; 2024, c. 652.","full_text":"a\n\nDuty of care when secured party in possession. Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party’s possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.b\n\nExpenses, risks, duties, and rights when secured party in possession. Except as otherwise provided in subsection (d), if a secured party has possession of collateral:1\n\nreasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral;2\n\nthe risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage;3\n\nthe secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and4\n\nthe secured party may use or operate the collateral:A\n\nfor the purpose of preserving the collateral or its value;B\n\nas permitted by an order of a court having competent jurisdiction; orC\n\nexcept in the case of consumer goods, in the manner and to the extent agreed by the debtor.c\n\nDuties and rights when secured party in possession or control. Except as otherwise provided in subsection (d), a secured party having possession of collateral or control of collateral under \u00a7 8.7-106, 8.9A-104, 8.9A-105, 8.9A-105.1, 8.9A-106, 8.9A-107, or 8.9A-107.1:1\n\nmay hold as additional security any proceeds, except money or funds, received from the collateral;2\n\nshall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor; and3\n\nmay create a security interest in the collateral.d\n\nBuyer of certain rights to payment. If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor:1\n\nsubsection (a) does not apply unless the secured party is entitled under an agreement:A\n\nto charge back uncollected collateral; orB\n\notherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and2\n\nsubsections (b) and (c) do not apply.","order_by":null,"text":{"0":{"id":229467,"text":"Duty of care when secured party in possession. Except as otherwise provided in subsection (d), a secured party shall use reasonable care in the custody and preservation of collateral in the secured party’s possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":229468,"text":"Expenses, risks, duties, and rights when secured party in possession. Except as otherwise provided in subsection (d), if a secured party has possession of collateral:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"b1"},"2":{"id":229469,"text":"reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral;","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"3":{"id":229470,"text":"the risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage;","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"b3"},"4":{"id":229471,"text":"the secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and","type":"section","prefixes":["b","3"],"prefix":"3","entire_prefix":"b3","prefix_anchor":"b3","level":2,"prior_prefix":"b2","next_prefix":"b4"},"5":{"id":229472,"text":"the secured party may use or operate the collateral:","type":"section","prefixes":["b","4"],"prefix":"4","entire_prefix":"b4","prefix_anchor":"b4","level":2,"prior_prefix":"b3","next_prefix":"A"},"6":{"id":229473,"text":"for the purpose of preserving the collateral or its value;","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"b4","next_prefix":"B"},"7":{"id":229474,"text":"as permitted by an order of a court having competent jurisdiction; or","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"8":{"id":229475,"text":"except in the case of consumer goods, in the manner and to the extent agreed by the debtor.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"c"},"9":{"id":229476,"text":"Duties and rights when secured party in possession or control. Except as otherwise provided in subsection (d), a secured party having possession of collateral or control of collateral under \u00a7 8.7-106, 8.9A-104, 8.9A-105, 8.9A-105.1, 8.9A-106, 8.9A-107, or 8.9A-107.1:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"C","next_prefix":"c1"},"10":{"id":229477,"text":"may hold as additional security any proceeds, except money or funds, received from the collateral;","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"11":{"id":229478,"text":"shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor; and","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"c3"},"12":{"id":229479,"text":"may create a security interest in the collateral.","type":"section","prefixes":["c","3"],"prefix":"3","entire_prefix":"c3","prefix_anchor":"c3","level":2,"prior_prefix":"c2","next_prefix":"d"},"13":{"id":229480,"text":"Buyer of certain rights to payment. If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c3","next_prefix":"d1"},"14":{"id":229481,"text":"subsection (a) does not apply unless the secured party is entitled under an agreement:","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"A"},"15":{"id":229482,"text":"to charge back uncollected collateral; or","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"d1","next_prefix":"B"},"16":{"id":229483,"text":"otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B2"},"17":{"id":229484,"text":"subsections (b) and (c) do not apply.","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B"}},"ancestry":[{"id":16040,"edition_id":1,"name":"Rights and Duties","identifier":"2","label":"subpart","depth":3,"order_by":1,"parent_id":13278,"metadata":{},"date_created":"2026-06-26 04:04:30","date_modified":"2026-06-26 04:04:30","permalink":{"id":283925,"object_type":"structure","relational_id":16040,"identifier":"2","token":"8.9A\/2\/2","url":"\/8.9A\/2\/2\/","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":62908,"structure_id":16040,"section_number":"8.9A-207","catch_line":"Rights and duties of secured party having possession or control of collateral","url":"\/8.9A-207\/","token":"8.9A\/2\/2\/8.9A-207","metadata":false},{"id":64267,"structure_id":16040,"section_number":"8.9A-208","catch_line":"Additional duties of secured party having control of collateral","url":"\/8.9A-208\/","token":"8.9A\/2\/2\/8.9A-208","metadata":false},{"id":63561,"structure_id":16040,"section_number":"8.9A-209","catch_line":"Duties of secured party if account debtor has been notified of assignment","url":"\/8.9A-209\/","token":"8.9A\/2\/2\/8.9A-209","metadata":false},{"id":78664,"structure_id":16040,"section_number":"8.9A-210","catch_line":"Request for accounting; request regarding list of collateral or statement of account","url":"\/8.9A-210\/","token":"8.9A\/2\/2\/8.9A-210","metadata":false}],"next_section":{"id":64267,"structure_id":16040,"section_number":"8.9A-208","catch_line":"Additional duties of secured party having control of collateral","url":"\/8.9A-208\/","token":"8.9A\/2\/2\/8.9A-208","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-207\/","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 3 times. 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. Those modifications are as follows: in 2000, chapter 1007<\/a>; in 2004, chapter 200<\/a>; in 2024, chapter 652<\/a>.<\/p>","references":[{"id":74406,"section_number":"8.9A-602","catch_line":"Waiver and variance of rights and duties","order_by":null,"url":"\/8.9A-602\/"}],"refers_to":[{"id":67103,"section_number":"8.7-106","catch_line":"Control of electronic document","order_by":null,"url":"\/8.7-106\/"},{"id":62491,"section_number":"8.9A-104","catch_line":"Control of deposit account","order_by":null,"url":"\/8.9A-104\/"},{"id":84613,"section_number":"8.9A-105","catch_line":"Control of electronic copy of record evidencing chattel paper","order_by":null,"url":"\/8.9A-105\/"},{"id":59549,"section_number":"8.9A-105.1","catch_line":"Control of electronic money","order_by":null,"url":"\/8.9A-105.1\/"},{"id":81668,"section_number":"8.9A-106","catch_line":"Control of investment property","order_by":null,"url":"\/8.9A-106\/"},{"id":58690,"section_number":"8.9A-107","catch_line":"Control of letter-of-credit right","order_by":null,"url":"\/8.9A-107\/"}],"permalink":{"id":283927,"object_type":"law","relational_id":62908,"identifier":"8.9A-207","token":"8.9A\/2\/2\/8.9A-207","url":"\/8.9A-207\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-207\/","token":"8.9A\/2\/2\/8.9A-207","dublin_core":{"Title":"Rights and duties of secured party having possession or control of collateral","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-207","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Duty of care when secured party<\/span> in possession<\/span>. Except as otherwise provided in subsection (d), a secured party<\/span> shall use reasonable care in the custody<\/span> and preservation of collateral<\/span> in the secured party<\/span>’s possession<\/span>. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Expenses, risks, duties, and rights when secured party<\/span> in possession<\/span>. Except as otherwise provided in subsection (d), if a secured party<\/span> has possession<\/span> of collateral<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody<\/span>, preservation, use, or operation of the collateral<\/span> are chargeable to the debtor and are secured by the collateral<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the secured party<\/span> shall keep the collateral<\/span> identifiable, but fungible collateral<\/span> may be commingled; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> the secured party<\/span> may use or operate the collateral<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> for the purpose of preserving the collateral<\/span> or its value; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> as permitted by an order<\/span> of a court<\/span> having competent jurisdiction<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> except in the case of consumer goods, in the manner and to the extent agreed by the debtor. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Duties and rights when secured party<\/span> in possession<\/span> or control. Except as otherwise provided in subsection (d), a secured party<\/span> having possession<\/span> of collateral<\/span> or control of collateral<\/span> under \u00a7 8.7-106<\/a>, 8.9A-104<\/a>, 8.9A-105<\/a>, 8.9A-105.1<\/a>, 8.9A-106<\/a>, 8.9A-107<\/a>, or 8.9A-107.1<\/a>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> may hold as additional security any proceeds, except money or funds, received from the collateral<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> shall apply money or funds received from the collateral<\/span> to reduce the secured obligation, unless remitted to the debtor; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> may create a security interest in the collateral<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Buyer of certain rights to payment. If the secured party<\/span> is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> subsection (a) does not apply unless the secured party<\/span> is entitled under an agreement: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> to charge back uncollected collateral<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default<\/span> of an account debtor or other obligor on the collateral<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> subsections (b) and (c) do not apply. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRIGHTS AND DUTIES OF SECURED PARTY HAVING POSSESSION OR CONTROL OF COLLATERAL\n(\u00a7 8.9A-207)\n\na. Duty of care when secured party in possession. Except as otherwise provided\nin subsection (d), a secured party shall use reasonable care in the custody and\npreservation of collateral in the secured party’s possession. In the case\nof chattel paper or an instrument, reasonable care includes taking necessary\nsteps to preserve rights against prior parties unless otherwise agreed.\n\nb. Expenses, risks, duties, and rights when secured party in possession. Except\nas otherwise provided in subsection (d), if a secured party has possession of\ncollateral:\n\n 1. reasonable expenses, including the cost of insurance and payment of taxes\n or other charges, incurred in the custody, preservation, use, or operation of\n the collateral are chargeable to the debtor and are secured by the collateral;\n\n 2. the risk of accidental loss or damage is on the debtor to the extent of a\n deficiency in any effective insurance coverage;\n\n 3. the secured party shall keep the collateral identifiable, but fungible\n collateral may be commingled; and\n\n 4. the secured party may use or operate the collateral:\n\nA. for the purpose of preserving the collateral or its value;\n\nB. as permitted by an order of a court having competent jurisdiction; or\n\nC. except in the case of consumer goods, in the manner and to the extent agreed\nby the debtor.\n\nc. Duties and rights when secured party in possession or control. Except as\notherwise provided in subsection (d), a secured party having possession of\ncollateral or control of collateral under \u00a7 8.7-106, 8.9A-104, 8.9A-105,\n8.9A-105.1, 8.9A-106, 8.9A-107, or 8.9A-107.1:\n\n 1. may hold as additional security any proceeds, except money or funds,\n received from the collateral;\n\n 2. shall apply money or funds received from the collateral to reduce the\n secured obligation, unless remitted to the debtor; and\n\n 3. may create a security interest in the collateral.\n\nd. Buyer of certain rights to payment. If the secured party is a buyer of\naccounts, chattel paper, payment intangibles, or promissory notes or a\nconsignor:\n\n 1. subsection (a) does not apply unless the secured party is entitled under an\n agreement:\n\nA. to charge back uncollected collateral; or\n\nB. otherwise to full or limited recourse against the debtor or a secondary\nobligor based on the nonpayment or other default of an account debtor or other\nobligor on the collateral; and\n\n 2. subsections (b) and (c) do not apply.\n\nHISTORY: 1964, c. 219, \u00a7 8.9-207; 2000, c. 1007; 2004, c. 200; 2024, c. 652.","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}}