{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-324.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-324.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-324.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-324.html"}],"law_id":72557,"edition_id":1,"section_id":72557,"structure_id":14251,"section_number":"8.9A-324","catch_line":"Priority of purchase-money security interests","history":"Code 1950, \u00a7 43-27; 1964, c. 219, \u00a7 8.9-312; 1966, c. 557; 1973, c. 509; 1983, c. 204; 1984, c. 613; 1996, c. 216; 2000, c. 1007; 2024, c. 652.","full_text":"a\n\nGeneral rule; purchase-money priority. Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in § 8.9A-327, a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within twenty days thereafter.b\n\nInventory purchase-money priority. Subject to subsection (c) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in \u00a7 8.9A-330, and, except as otherwise provided in \u00a7 8.9A-327, also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if:1\n\nthe purchase-money security interest is perfected when the debtor receives possession of the inventory;2\n\nthe purchase-money secured party sends a signed notification to the holder of the conflicting security interest;3\n\nthe holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and4\n\nthe notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory.c\n\nHolders of conflicting inventory security interests to be notified. Subsections (b) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:1\n\nif the purchase-money security interest is perfected by filing, before the date of the filing; or2\n\nif the purchase-money security interest is temporarily perfected without filing or possession under § 8.9A-312 (f), before the beginning of the twenty-day period thereunder.d\n\nLivestock purchase-money priority. Subject to subsection (e) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in \u00a7 8.9A-327, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:1\n\nthe purchase-money security interest is perfected when the debtor receives possession of the livestock;2\n\nthe purchase-money secured party sends a signed notification to the holder of the conflicting security interest;3\n\nthe holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and4\n\nthe notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.e\n\nHolders of conflicting livestock security interests to be notified. Subsections (d) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:1\n\nif the purchase-money security interest is perfected by filing, before the date of the filing; or2\n\nif the purchase-money security interest is temporarily perfected without filing or possession under § 8.9A-312 (f), before the beginning of the twenty-day period thereunder.f\n\nSoftware purchase-money priority. Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in § 8.9A-327, a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section.g\n\nConflicting purchase-money security interests. If more than one security interest qualifies for priority in the same collateral under subsection (a), (b), (d), or (f):1\n\na security interest securing an obligation incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and2\n\nin all other cases, § 8.9A-322 (a) applies to the qualifying security interests.","order_by":null,"text":{"0":{"id":261235,"text":"General rule; purchase-money priority. Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in § 8.9A-327, a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within twenty days thereafter.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":261236,"text":"Inventory purchase-money priority. Subject to subsection (c) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in \u00a7 8.9A-330, and, except as otherwise provided in \u00a7 8.9A-327, also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"b1"},"2":{"id":261237,"text":"the purchase-money security interest is perfected when the debtor receives possession of the inventory;","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"3":{"id":261238,"text":"the purchase-money secured party sends a signed notification to the holder of the conflicting security interest;","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"b3"},"4":{"id":261239,"text":"the holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and","type":"section","prefixes":["b","3"],"prefix":"3","entire_prefix":"b3","prefix_anchor":"b3","level":2,"prior_prefix":"b2","next_prefix":"b4"},"5":{"id":261240,"text":"the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory.","type":"section","prefixes":["b","4"],"prefix":"4","entire_prefix":"b4","prefix_anchor":"b4","level":2,"prior_prefix":"b3","next_prefix":"c"},"6":{"id":261241,"text":"Holders of conflicting inventory security interests to be notified. Subsections (b) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b4","next_prefix":"c1"},"7":{"id":261242,"text":"if the purchase-money security interest is perfected by filing, before the date of the filing; or","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"8":{"id":261243,"text":"if the purchase-money security interest is temporarily perfected without filing or possession under § 8.9A-312 (f), before the beginning of the twenty-day period thereunder.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"d"},"9":{"id":261244,"text":"Livestock purchase-money priority. Subject to subsection (e) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in \u00a7 8.9A-327, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c2","next_prefix":"d1"},"10":{"id":261245,"text":"the purchase-money security interest is perfected when the debtor receives possession of the livestock;","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"11":{"id":261246,"text":"the purchase-money secured party sends a signed notification to the holder of the conflicting security interest;","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"d3"},"12":{"id":261247,"text":"the holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and","type":"section","prefixes":["d","3"],"prefix":"3","entire_prefix":"d3","prefix_anchor":"d3","level":2,"prior_prefix":"d2","next_prefix":"d4"},"13":{"id":261248,"text":"the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.","type":"section","prefixes":["d","4"],"prefix":"4","entire_prefix":"d4","prefix_anchor":"d4","level":2,"prior_prefix":"d3","next_prefix":"e"},"14":{"id":261249,"text":"Holders of conflicting livestock security interests to be notified. Subsections (d) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d4","next_prefix":"e1"},"15":{"id":261250,"text":"if the purchase-money security interest is perfected by filing, before the date of the filing; or","type":"section","prefixes":["e","1"],"prefix":"1","entire_prefix":"e1","prefix_anchor":"e1","level":2,"prior_prefix":"e","next_prefix":"e2"},"16":{"id":261251,"text":"if the purchase-money security interest is temporarily perfected without filing or possession under § 8.9A-312 (f), before the beginning of the twenty-day period thereunder.","type":"section","prefixes":["e","2"],"prefix":"2","entire_prefix":"e2","prefix_anchor":"e2","level":2,"prior_prefix":"e1","next_prefix":"f"},"17":{"id":261252,"text":"Software purchase-money priority. Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in § 8.9A-327, a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e2","next_prefix":"g"},"18":{"id":261253,"text":"Conflicting purchase-money security interests. If more than one security interest qualifies for priority in the same collateral under subsection (a), (b), (d), or (f):","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f","next_prefix":"g1"},"19":{"id":261254,"text":"a security interest securing an obligation incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and","type":"section","prefixes":["g","1"],"prefix":"1","entire_prefix":"g1","prefix_anchor":"g1","level":2,"prior_prefix":"g","next_prefix":"g2"},"20":{"id":261255,"text":"in all other cases, § 8.9A-322 (a) applies to the qualifying security interests.","type":"section","prefixes":["g","2"],"prefix":"2","entire_prefix":"g2","prefix_anchor":"g2","level":2,"prior_prefix":"g1"}},"ancestry":[{"id":14251,"edition_id":1,"name":"Priority","identifier":"3","label":"subpart","depth":3,"order_by":1,"parent_id":13858,"metadata":{},"date_created":"2026-06-26 03:47:27","date_modified":"2026-06-26 03:47:27","permalink":{"id":284025,"object_type":"structure","relational_id":14251,"identifier":"3","token":"8.9A\/3\/3","url":"\/8.9A\/3\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13858,"edition_id":1,"name":"Perfection and Priority","identifier":"3","label":"part","depth":2,"order_by":1,"parent_id":13277,"metadata":{},"date_created":"2026-06-26 03:46:06","date_modified":"2026-06-26 03:46:06","permalink":{"id":283943,"object_type":"structure","relational_id":13858,"identifier":"3","token":"8.9A\/3","url":"\/8.9A\/3\/","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":62358,"structure_id":14251,"section_number":"8.9A-317","catch_line":"Interests that take priority over or take free of security interest or agricultural lien","url":"\/8.9A-317\/","token":"8.9A\/3\/3\/8.9A-317","metadata":false},{"id":78831,"structure_id":14251,"section_number":"8.9A-318","catch_line":"No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers","url":"\/8.9A-318\/","token":"8.9A\/3\/3\/8.9A-318","metadata":false},{"id":70155,"structure_id":14251,"section_number":"8.9A-319","catch_line":"Rights and title of consignee with respect to creditors and purchasers","url":"\/8.9A-319\/","token":"8.9A\/3\/3\/8.9A-319","metadata":false},{"id":62582,"structure_id":14251,"section_number":"8.9A-320","catch_line":"Buyer of goods","url":"\/8.9A-320\/","token":"8.9A\/3\/3\/8.9A-320","metadata":false},{"id":59162,"structure_id":14251,"section_number":"8.9A-321","catch_line":"Licensee of general intangible and lessee of goods in ordinary course of business","url":"\/8.9A-321\/","token":"8.9A\/3\/3\/8.9A-321","metadata":false},{"id":61423,"structure_id":14251,"section_number":"8.9A-322","catch_line":"Priorities among conflicting security interests in and agricultural liens on same collateral","url":"\/8.9A-322\/","token":"8.9A\/3\/3\/8.9A-322","metadata":false},{"id":65781,"structure_id":14251,"section_number":"8.9A-323","catch_line":"Future advances","url":"\/8.9A-323\/","token":"8.9A\/3\/3\/8.9A-323","metadata":false},{"id":72557,"structure_id":14251,"section_number":"8.9A-324","catch_line":"Priority of purchase-money security interests","url":"\/8.9A-324\/","token":"8.9A\/3\/3\/8.9A-324","metadata":false},{"id":61420,"structure_id":14251,"section_number":"8.9A-325","catch_line":"Priority of security interests in transferred collateral","url":"\/8.9A-325\/","token":"8.9A\/3\/3\/8.9A-325","metadata":false},{"id":62923,"structure_id":14251,"section_number":"8.9A-326","catch_line":"Priority of security interests created by new debtor","url":"\/8.9A-326\/","token":"8.9A\/3\/3\/8.9A-326","metadata":false},{"id":66791,"structure_id":14251,"section_number":"8.9A-326.1","catch_line":"Priority of security interest in controllable account, controllable electronic record, and controllable payment intangible","url":"\/8.9A-326.1\/","token":"8.9A\/3\/3\/8.9A-326.1","metadata":false},{"id":71092,"structure_id":14251,"section_number":"8.9A-327","catch_line":"Priority of security interests in deposit account","url":"\/8.9A-327\/","token":"8.9A\/3\/3\/8.9A-327","metadata":false},{"id":71019,"structure_id":14251,"section_number":"8.9A-328","catch_line":"Priority of security interests in investment property","url":"\/8.9A-328\/","token":"8.9A\/3\/3\/8.9A-328","metadata":false},{"id":66602,"structure_id":14251,"section_number":"8.9A-329","catch_line":"Priority of security interests in letter-of-credit right","url":"\/8.9A-329\/","token":"8.9A\/3\/3\/8.9A-329","metadata":false},{"id":62875,"structure_id":14251,"section_number":"8.9A-330","catch_line":"Priority of purchaser of chattel paper or instrument","url":"\/8.9A-330\/","token":"8.9A\/3\/3\/8.9A-330","metadata":false},{"id":66143,"structure_id":14251,"section_number":"8.9A-331","catch_line":"Priority of rights of purchasers of controllable accounts, controllable electronic records, controllable payment intangibles, documents, instruments and securities under other titles, priority of interests in financial assets and security entitlements and protection against assertion of claims under Titles 8.8A and 8.12","url":"\/8.9A-331\/","token":"8.9A\/3\/3\/8.9A-331","metadata":false},{"id":59890,"structure_id":14251,"section_number":"8.9A-332","catch_line":"Transfer of money, transfer of funds from deposit account","url":"\/8.9A-332\/","token":"8.9A\/3\/3\/8.9A-332","metadata":false},{"id":79779,"structure_id":14251,"section_number":"8.9A-333","catch_line":"Priority of certain liens arising by operation of law","url":"\/8.9A-333\/","token":"8.9A\/3\/3\/8.9A-333","metadata":false},{"id":71252,"structure_id":14251,"section_number":"8.9A-334","catch_line":"Priority of security interests in fixtures and crops","url":"\/8.9A-334\/","token":"8.9A\/3\/3\/8.9A-334","metadata":false},{"id":66095,"structure_id":14251,"section_number":"8.9A-335","catch_line":"Accessions","url":"\/8.9A-335\/","token":"8.9A\/3\/3\/8.9A-335","metadata":false},{"id":80265,"structure_id":14251,"section_number":"8.9A-336","catch_line":"Commingled goods","url":"\/8.9A-336\/","token":"8.9A\/3\/3\/8.9A-336","metadata":false},{"id":55482,"structure_id":14251,"section_number":"8.9A-337","catch_line":"Priority of security interests in goods covered by certificate of title","url":"\/8.9A-337\/","token":"8.9A\/3\/3\/8.9A-337","metadata":false},{"id":72213,"structure_id":14251,"section_number":"8.9A-338","catch_line":"Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information","url":"\/8.9A-338\/","token":"8.9A\/3\/3\/8.9A-338","metadata":false},{"id":61256,"structure_id":14251,"section_number":"8.9A-339","catch_line":"Priority subject to subordination","url":"\/8.9A-339\/","token":"8.9A\/3\/3\/8.9A-339","metadata":false}],"previous_section":{"id":65781,"structure_id":14251,"section_number":"8.9A-323","catch_line":"Future advances","url":"\/8.9A-323\/","token":"8.9A\/3\/3\/8.9A-323","metadata":false},"next_section":{"id":61420,"structure_id":14251,"section_number":"8.9A-325","catch_line":"Priority of security interests in transferred collateral","url":"\/8.9A-325\/","token":"8.9A\/3\/3\/8.9A-325","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-324\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 8 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 1964, chapter 219; in 1966, chapter 557; in 1973, chapter 509; in 1983, chapter 204; in 1984, chapter 613; in 1996, chapter 216<\/a>; in 2000, chapter 1007<\/a>; in 2024, chapter 652<\/a>.<\/p>","references":[{"id":61420,"section_number":"8.9A-325","catch_line":"Priority of security interests in transferred collateral","order_by":null,"url":"\/8.9A-325\/"}],"refers_to":[{"id":64453,"section_number":"8.9A-312","catch_line":"Perfection of security interests in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing, temporary perfection without filing or transfer of possession","order_by":null,"url":"\/8.9A-312\/"},{"id":61423,"section_number":"8.9A-322","catch_line":"Priorities among conflicting security interests in and agricultural liens on same collateral","order_by":null,"url":"\/8.9A-322\/"},{"id":71092,"section_number":"8.9A-327","catch_line":"Priority of security interests in deposit account","order_by":null,"url":"\/8.9A-327\/"},{"id":62875,"section_number":"8.9A-330","catch_line":"Priority of purchaser of chattel paper or instrument","order_by":null,"url":"\/8.9A-330\/"}],"permalink":{"id":284055,"object_type":"law","relational_id":72557,"identifier":"8.9A-324","token":"8.9A\/3\/3\/8.9A-324","url":"\/8.9A-324\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-324\/","token":"8.9A\/3\/3\/8.9A-324","dublin_core":{"Title":"Priority of purchase-money security interests","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-324","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> General rule; purchase-money priority. Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in § 8.9A-327<\/a>, a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession<\/span> of the collateral<\/span> or within twenty days thereafter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Inventory purchase-money priority. Subject to subsection (c) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in \u00a7 8.9A-330<\/a>, and, except as otherwise provided in \u00a7 8.9A-327<\/a>, also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the purchase-money security interest is perfected when the debtor receives possession<\/span> of the inventory; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the purchase-money secured party<\/span> sends a signed notification to the holder of the conflicting security interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the holder of the conflicting security interest receives the notification within five years before the debtor receives possession<\/span> of the inventory; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Holders of conflicting inventory security interests to be notified. Subsections (b) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> if the purchase-money security interest is perfected by filing, before the date of the filing; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> if the purchase-money security interest is temporarily perfected without filing or possession<\/span> under § 8.9A-312<\/a> (f), before the beginning of the twenty-day period thereunder. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Livestock purchase-money priority. Subject to subsection (e) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in \u00a7 8.9A-327<\/a>, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the purchase-money security interest is perfected when the debtor receives possession<\/span> of the livestock; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the purchase-money secured party<\/span> sends a signed notification to the holder of the conflicting security interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the holder of the conflicting security interest receives the notification within six months before the debtor receives possession<\/span> of the livestock; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Holders of conflicting livestock security interests to be notified. Subsections (d) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> if the purchase-money security interest is perfected by filing, before the date of the filing; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> if the purchase-money security interest is temporarily perfected without filing or possession<\/span> under § 8.9A-312<\/a> (f), before the beginning of the twenty-day period thereunder. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Software purchase-money priority. Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral<\/span>, and, except as otherwise provided in § 8.9A-327<\/a>, a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> Conflicting purchase-money security interests. If more than one security interest qualifies for priority in the same collateral<\/span> under subsection (a), (b), (d), or (f): <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a security interest securing an obligation incurred as all or part of the price of the collateral<\/span> has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> in all other cases, § 8.9A-322<\/a> (a) applies to the qualifying security interests. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPRIORITY OF PURCHASE-MONEY SECURITY INTERESTS (\u00a7 8.9A-324)\n\na. General rule; purchase-money priority. Except as otherwise provided in\nsubsection (g), a perfected purchase-money security interest in goods other than\ninventory or livestock has priority over a conflicting security interest in the\nsame goods, and, except as otherwise provided in § 8.9A-327, a perfected\nsecurity interest in its identifiable proceeds also has priority, if the\npurchase-money security interest is perfected when the debtor receives\npossession of the collateral or within twenty days thereafter.\n\nb. Inventory purchase-money priority. Subject to subsection (c) and except as\notherwise provided in subsection (g), a perfected purchase-money security\ninterest in inventory has priority over a conflicting security interest in the\nsame inventory, has priority over a conflicting security interest in chattel\npaper or an instrument constituting proceeds of the inventory and in proceeds of\nthe chattel paper, if so provided in \u00a7 8.9A-330, and, except as otherwise\nprovided in \u00a7 8.9A-327, also has priority in identifiable cash proceeds of the\ninventory to the extent the identifiable cash proceeds are received on or before\nthe delivery of the inventory to a buyer, if:\n\n 1. the purchase-money security interest is perfected when the debtor receives\n possession of the inventory;\n\n 2. the purchase-money secured party sends a signed notification to the holder\n of the conflicting security interest;\n\n 3. the holder of the conflicting security interest receives the notification\n within five years before the debtor receives possession of the inventory; and\n\n 4. the notification states that the person sending the notification has or\n expects to acquire a purchase-money security interest in inventory of the\n debtor and describes the inventory.\n\nc. Holders of conflicting inventory security interests to be notified.\nSubsections (b) (2) through (4) apply only if the holder of the conflicting\nsecurity interest had filed a financing statement covering the same types of\ninventory:\n\n 1. if the purchase-money security interest is perfected by filing, before the\n date of the filing; or\n\n 2. if the purchase-money security interest is temporarily perfected without\n filing or possession under § 8.9A-312 (f), before the beginning of the\n twenty-day period thereunder.\n\nd. Livestock purchase-money priority. Subject to subsection (e) and except as\notherwise provided in subsection (g), a perfected purchase-money security\ninterest in livestock that are farm products has priority over a conflicting\nsecurity interest in the same livestock, and, except as otherwise provided in \u00a7\n8.9A-327, a perfected security interest in their identifiable proceeds and\nidentifiable products in their unmanufactured states also has priority, if:\n\n 1. the purchase-money security interest is perfected when the debtor receives\n possession of the livestock;\n\n 2. the purchase-money secured party sends a signed notification to the holder\n of the conflicting security interest;\n\n 3. the holder of the conflicting security interest receives the notification\n within six months before the debtor receives possession of the livestock; and\n\n 4. the notification states that the person sending the notification has or\n expects to acquire a purchase-money security interest in livestock of the\n debtor and describes the livestock.\n\ne. Holders of conflicting livestock security interests to be notified.\nSubsections (d) (2) through (4) apply only if the holder of the conflicting\nsecurity interest had filed a financing statement covering the same types of\nlivestock:\n\n 1. if the purchase-money security interest is perfected by filing, before the\n date of the filing; or\n\n 2. if the purchase-money security interest is temporarily perfected without\n filing or possession under § 8.9A-312 (f), before the beginning of the\n twenty-day period thereunder.\n\nf. Software purchase-money priority. Except as otherwise provided in subsection\n(g), a perfected purchase-money security interest in software has priority over\na conflicting security interest in the same collateral, and, except as otherwise\nprovided in § 8.9A-327, a perfected security interest in its identifiable\nproceeds also has priority, to the extent that the purchase-money security\ninterest in the goods in which the software was acquired for use has priority in\nthe goods and proceeds of the goods under this section.\n\ng. Conflicting purchase-money security interests. If more than one security\ninterest qualifies for priority in the same collateral under subsection (a),\n(b), (d), or (f):\n\n 1. a security interest securing an obligation incurred as all or part of the\n price of the collateral has priority over a security interest securing an\n obligation incurred for value given to enable the debtor to acquire rights in\n or the use of collateral; and\n\n 2. in all other cases, § 8.9A-322 (a) applies to the qualifying security\n interests.\n\nHISTORY: Code 1950, \u00a7 43-27; 1964, c. 219, \u00a7 8.9-312; 1966, c. 557; 1973, c.\n509; 1983, c. 204; 1984, c. 613; 1996, c. 216; 2000, c. 1007; 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}}