{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-330.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-330.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-330.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-330.html"}],"law_id":62875,"edition_id":1,"section_id":62875,"structure_id":14251,"section_number":"8.9A-330","catch_line":"Priority of purchaser of chattel paper or instrument","history":"Code 1950, \u00a7\u00a7 6-558, 6-559; 1964, c. 219, \u00a7 8.9-308; 1973, c. 509; 2000, c. 1007; 2024, c. 652.","full_text":"a\n\nPurchaser’s priority; security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:1\n\nin good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under § 8.9A-105 of each authoritative electronic copy of the record evidencing the chattel paper; and2\n\nthe authoritative copies of the record evidencing the chattel paper do not indicate that the chattel paper has been assigned to an identified assignee other than the purchaser.b\n\nPurchaser’s priority; other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under § 8.9A-105 of each authoritative electronic copy evidencing the chattel paper in good faith, in the ordinary course of the purchaser’s business, and without knowledge that the purchase violates the rights of the secured party.c\n\nChattel paper purchaser’s priority in proceeds. Except as otherwise provided in \u00a7 8.9A-327, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that:1\n\nSection 8.9A-322 provides for priority in the proceeds; or2\n\nthe proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser’s security interest in the proceeds is unperfected.d\n\nInstrument purchaser’s priority. Except as otherwise provided in § 8.9A-331 (a), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.e\n\nHolder of purchase-money security interest gives new value. For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.f\n\nIndication of assignment gives knowledge. For purposes of subsections (b) and (d), if the authoritative copies of the record evidencing chattel paper or an instrument indicate that the chattel paper or instrument has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party.","order_by":null,"text":{"0":{"id":229183,"text":"Purchaser’s priority; security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":229184,"text":"in good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under § 8.9A-105 of each authoritative electronic copy of the record evidencing the chattel paper; and","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":229185,"text":"the authoritative copies of the record evidencing the chattel paper do not indicate that the chattel paper has been assigned to an identified assignee other than the purchaser.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"3":{"id":229186,"text":"Purchaser’s priority; other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under § 8.9A-105 of each authoritative electronic copy evidencing the chattel paper in good faith, in the ordinary course of the purchaser’s business, and without knowledge that the purchase violates the rights of the secured party.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"c"},"4":{"id":229187,"text":"Chattel paper purchaser’s priority in proceeds. Except as otherwise provided in \u00a7 8.9A-327, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"c1"},"5":{"id":229188,"text":"Section 8.9A-322 provides for priority in the proceeds; or","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"6":{"id":229189,"text":"the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser’s security interest in the proceeds is unperfected.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"d"},"7":{"id":229190,"text":"Instrument purchaser’s priority. Except as otherwise provided in § 8.9A-331 (a), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c2","next_prefix":"e"},"8":{"id":229191,"text":"Holder of purchase-money security interest gives new value. For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"9":{"id":229192,"text":"Indication of assignment gives knowledge. For purposes of subsections (b) and (d), if the authoritative copies of the record evidencing chattel paper or an instrument indicate that the chattel paper or instrument has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-330\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 4 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 1973, chapter 509; in 2000, chapter 1007<\/a>; in 2024, chapter 652<\/a>.<\/p>","references":[{"id":71683,"section_number":"59.1-494","catch_line":"Transferable records","order_by":null,"url":"\/59.1-494\/"},{"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":72557,"section_number":"8.9A-324","catch_line":"Priority of purchase-money security interests","order_by":null,"url":"\/8.9A-324\/"}],"refers_to":[{"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":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":66143,"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","order_by":null,"url":"\/8.9A-331\/"}],"permalink":{"id":284083,"object_type":"law","relational_id":62875,"identifier":"8.9A-330","token":"8.9A\/3\/3\/8.9A-330","url":"\/8.9A-330\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-330\/","token":"8.9A\/3\/3\/8.9A-330","dublin_core":{"Title":"Priority of purchaser of chattel paper or instrument","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-330","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Purchaser’s priority; security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> in good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value, takes possession<\/span> of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under § 8.9A-105<\/a> of each authoritative electronic copy of the record evidencing the chattel paper; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the authoritative copies of the record evidencing the chattel paper do not indicate that the chattel paper has been assigned to an identified assignee other than the purchaser. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Purchaser’s priority; other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value, takes possession<\/span> of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under § 8.9A-105<\/a> of each authoritative electronic copy evidencing the chattel paper in good faith, in the ordinary course of the purchaser’s business, and without knowledge that the purchase violates the rights of the secured party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Chattel paper purchaser’s priority in proceeds. Except as otherwise provided in \u00a7 8.9A-327<\/a>, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Section 8.9A-322<\/a> provides for priority in the proceeds; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser’s security interest in the proceeds is unperfected. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Instrument purchaser’s priority. Except as otherwise provided in § 8.9A-331<\/a> (a), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession<\/span> if the purchaser gives value and takes possession<\/span> of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Holder of purchase-money security interest gives new value. For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Indication of assignment gives knowledge. For purposes of subsections (b) and (d), if the authoritative copies of the record evidencing chattel paper or an instrument indicate that the chattel paper or instrument has been assigned to an identified secured party<\/span> other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPRIORITY OF PURCHASER OF CHATTEL PAPER OR INSTRUMENT (\u00a7 8.9A-330)\n\na. Purchaser’s priority; security interest claimed merely as proceeds. A\npurchaser of chattel paper has priority over a security interest in the chattel\npaper which is claimed merely as proceeds of inventory subject to a security\ninterest if:\n\n 1. in good faith and in the ordinary course of the purchaser’s business,\n the purchaser gives new value, takes possession of each authoritative tangible\n copy of the record evidencing the chattel paper, and obtains control under\n § 8.9A-105 of each authoritative electronic copy of the record evidencing\n the chattel paper; and\n\n 2. the authoritative copies of the record evidencing the chattel paper do not\n indicate that the chattel paper has been assigned to an identified assignee\n other than the purchaser.\n\nb. Purchaser’s priority; other security interests. A purchaser of chattel\npaper has priority over a security interest in the chattel paper which is\nclaimed other than merely as proceeds of inventory subject to a security\ninterest if the purchaser gives new value, takes possession of each\nauthoritative tangible copy of the record evidencing the chattel paper, and\nobtains control under § 8.9A-105 of each authoritative electronic copy\nevidencing the chattel paper in good faith, in the ordinary course of the\npurchaser’s business, and without knowledge that the purchase violates the\nrights of the secured party.\n\nc. Chattel paper purchaser’s priority in proceeds. Except as otherwise\nprovided in \u00a7 8.9A-327, a purchaser having priority in chattel paper under\nsubsection (a) or (b) also has priority in proceeds of the chattel paper to the\nextent that:\n\n 1. Section 8.9A-322 provides for priority in the proceeds; or\n\n 2. the proceeds consist of the specific goods covered by the chattel paper or\n cash proceeds of the specific goods, even if the purchaser’s security\n interest in the proceeds is unperfected.\n\nd. Instrument purchaser’s priority. Except as otherwise provided in §\n8.9A-331 (a), a purchaser of an instrument has priority over a security interest\nin the instrument perfected by a method other than possession if the purchaser\ngives value and takes possession of the instrument in good faith and without\nknowledge that the purchase violates the rights of the secured party.\n\ne. Holder of purchase-money security interest gives new value. For purposes of\nsubsections (a) and (b), the holder of a purchase-money security interest in\ninventory gives new value for chattel paper constituting proceeds of the\ninventory.\n\nf. Indication of assignment gives knowledge. For purposes of subsections (b) and\n(d), if the authoritative copies of the record evidencing chattel paper or an\ninstrument indicate that the chattel paper or instrument has been assigned to an\nidentified secured party other than the purchaser, a purchaser of the chattel\npaper or instrument has knowledge that the purchase violates the rights of the\nsecured party.\n\nHISTORY: Code 1950, \u00a7\u00a7 6-558, 6-559; 1964, c. 219, \u00a7 8.9-308; 1973, c. 509;\n2000, 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}}