{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-608.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-608.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-608.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-608.html"}],"law_id":58414,"edition_id":1,"section_id":58414,"structure_id":15263,"section_number":"8.9A-608","catch_line":"Application of proceeds of collection or enforcement; liability for deficiency and right to surplus","history":"2000, c. 1007; 2024, c. 652.","full_text":"a\n\nApplication of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:1\n\nA secured party shall apply or pay over for application the cash proceeds of collection or enforcement under § 8.9A-607 in the following order to:A\n\nthe reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney’s fees and legal expenses incurred by the secured party;B\n\nthe satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; andC\n\nthe satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives a signed demand for proceeds before distribution of the proceeds is completed.2\n\nIf requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder’s demand under subsection (a) (1) (C).3\n\nA secured party need not apply or pay over for application noncash proceeds of collection and enforcement under § 8.9A-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.4\n\nA secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.b\n\nNo surplus or deficiency in sales of certain rights to payment. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.","order_by":null,"text":{"0":{"id":213883,"text":"Application of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":213884,"text":"A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under § 8.9A-607 in the following order to:","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"A"},"2":{"id":213885,"text":"the reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney’s fees and legal expenses incurred by the secured party;","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"a1","next_prefix":"B"},"3":{"id":213886,"text":"the satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"4":{"id":213887,"text":"the satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives a signed demand for proceeds before distribution of the proceeds is completed.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"C2"},"5":{"id":213888,"text":"If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder’s demand under subsection (a) (1) (C).","type":"section","prefixes":["C","2"],"prefix":"2","entire_prefix":"C2","prefix_anchor":"C2","level":2,"prior_prefix":"C","next_prefix":"C3"},"6":{"id":213889,"text":"A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under § 8.9A-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner.","type":"section","prefixes":["C","3"],"prefix":"3","entire_prefix":"C3","prefix_anchor":"C3","level":2,"prior_prefix":"C2","next_prefix":"C4"},"7":{"id":213890,"text":"A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.","type":"section","prefixes":["C","4"],"prefix":"4","entire_prefix":"C4","prefix_anchor":"C4","level":2,"prior_prefix":"C3","next_prefix":"b"},"8":{"id":213891,"text":"No surplus or deficiency in sales of certain rights to payment. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"C4"}},"ancestry":[{"id":15263,"edition_id":1,"name":"Default and Enforcement of Security Interest","identifier":"1","label":"subpart","depth":3,"order_by":1,"parent_id":15262,"metadata":{},"date_created":"2026-06-26 03:53:25","date_modified":"2026-06-26 03:53:25","permalink":{"id":284295,"object_type":"structure","relational_id":15263,"identifier":"1","token":"8.9A\/6\/1","url":"\/8.9A\/6\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":15262,"edition_id":1,"name":"Default","identifier":"6","label":"part","depth":2,"order_by":1,"parent_id":13277,"metadata":{},"date_created":"2026-06-26 03:53:25","date_modified":"2026-06-26 03:53:25","permalink":{"id":284293,"object_type":"structure","relational_id":15262,"identifier":"6","token":"8.9A\/6","url":"\/8.9A\/6\/","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":87391,"structure_id":15263,"section_number":"8.9A-601","catch_line":"Rights after default; judicial enforcement, consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes","url":"\/8.9A-601\/","token":"8.9A\/6\/1\/8.9A-601","metadata":false},{"id":74406,"structure_id":15263,"section_number":"8.9A-602","catch_line":"Waiver and variance of rights and duties","url":"\/8.9A-602\/","token":"8.9A\/6\/1\/8.9A-602","metadata":false},{"id":69348,"structure_id":15263,"section_number":"8.9A-603","catch_line":"Agreement on standards concerning rights and duties","url":"\/8.9A-603\/","token":"8.9A\/6\/1\/8.9A-603","metadata":false},{"id":61411,"structure_id":15263,"section_number":"8.9A-604","catch_line":"Procedure if security agreement covers real property or fixtures","url":"\/8.9A-604\/","token":"8.9A\/6\/1\/8.9A-604","metadata":false},{"id":69925,"structure_id":15263,"section_number":"8.9A-605","catch_line":"Unknown debtor or secondary obligor","url":"\/8.9A-605\/","token":"8.9A\/6\/1\/8.9A-605","metadata":false},{"id":82913,"structure_id":15263,"section_number":"8.9A-606","catch_line":"Time of default for agricultural lien","url":"\/8.9A-606\/","token":"8.9A\/6\/1\/8.9A-606","metadata":false},{"id":78656,"structure_id":15263,"section_number":"8.9A-607","catch_line":"Collection and enforcement by secured party","url":"\/8.9A-607\/","token":"8.9A\/6\/1\/8.9A-607","metadata":false},{"id":58414,"structure_id":15263,"section_number":"8.9A-608","catch_line":"Application of proceeds of collection or enforcement; liability for deficiency and right to surplus","url":"\/8.9A-608\/","token":"8.9A\/6\/1\/8.9A-608","metadata":false},{"id":76317,"structure_id":15263,"section_number":"8.9A-609","catch_line":"Secured party's right to take possession after default","url":"\/8.9A-609\/","token":"8.9A\/6\/1\/8.9A-609","metadata":false},{"id":83035,"structure_id":15263,"section_number":"8.9A-610","catch_line":"Disposition of collateral after default","url":"\/8.9A-610\/","token":"8.9A\/6\/1\/8.9A-610","metadata":false},{"id":69700,"structure_id":15263,"section_number":"8.9A-611","catch_line":"Notification before disposition of collateral","url":"\/8.9A-611\/","token":"8.9A\/6\/1\/8.9A-611","metadata":false},{"id":60808,"structure_id":15263,"section_number":"8.9A-612","catch_line":"Timeliness of notification before disposition of collateral","url":"\/8.9A-612\/","token":"8.9A\/6\/1\/8.9A-612","metadata":false},{"id":72203,"structure_id":15263,"section_number":"8.9A-613","catch_line":"Contents and form of notification before disposition of collateral; general","url":"\/8.9A-613\/","token":"8.9A\/6\/1\/8.9A-613","metadata":false},{"id":83544,"structure_id":15263,"section_number":"8.9A-614","catch_line":"Contents and form of notification before disposition of collateral; consumer-goods transaction","url":"\/8.9A-614\/","token":"8.9A\/6\/1\/8.9A-614","metadata":false},{"id":63326,"structure_id":15263,"section_number":"8.9A-615","catch_line":"Application of proceeds of disposition; liability for deficiency and right to surplus","url":"\/8.9A-615\/","token":"8.9A\/6\/1\/8.9A-615","metadata":false},{"id":58094,"structure_id":15263,"section_number":"8.9A-616","catch_line":"Explanation of calculation of surplus or deficiency","url":"\/8.9A-616\/","token":"8.9A\/6\/1\/8.9A-616","metadata":false},{"id":70895,"structure_id":15263,"section_number":"8.9A-617","catch_line":"Rights of transferee of collateral","url":"\/8.9A-617\/","token":"8.9A\/6\/1\/8.9A-617","metadata":false},{"id":74054,"structure_id":15263,"section_number":"8.9A-618","catch_line":"Rights and duties of certain secondary obligors","url":"\/8.9A-618\/","token":"8.9A\/6\/1\/8.9A-618","metadata":false},{"id":82499,"structure_id":15263,"section_number":"8.9A-619","catch_line":"Transfer of record or legal title","url":"\/8.9A-619\/","token":"8.9A\/6\/1\/8.9A-619","metadata":false},{"id":83620,"structure_id":15263,"section_number":"8.9A-620","catch_line":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral","url":"\/8.9A-620\/","token":"8.9A\/6\/1\/8.9A-620","metadata":false},{"id":69990,"structure_id":15263,"section_number":"8.9A-621","catch_line":"Notification of proposal to accept collateral","url":"\/8.9A-621\/","token":"8.9A\/6\/1\/8.9A-621","metadata":false},{"id":87445,"structure_id":15263,"section_number":"8.9A-622","catch_line":"Effect of acceptance of collateral","url":"\/8.9A-622\/","token":"8.9A\/6\/1\/8.9A-622","metadata":false},{"id":76014,"structure_id":15263,"section_number":"8.9A-623","catch_line":"Right to redeem collateral","url":"\/8.9A-623\/","token":"8.9A\/6\/1\/8.9A-623","metadata":false},{"id":86883,"structure_id":15263,"section_number":"8.9A-624","catch_line":"Waiver","url":"\/8.9A-624\/","token":"8.9A\/6\/1\/8.9A-624","metadata":false}],"previous_section":{"id":78656,"structure_id":15263,"section_number":"8.9A-607","catch_line":"Collection and enforcement by secured party","url":"\/8.9A-607\/","token":"8.9A\/6\/1\/8.9A-607","metadata":false},"next_section":{"id":76317,"structure_id":15263,"section_number":"8.9A-609","catch_line":"Secured party's right to take possession after default","url":"\/8.9A-609\/","token":"8.9A\/6\/1\/8.9A-609","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-608\/","history_text":"

This law was first created in 2000. The record of its establishment is cataloged in chapter 1007<\/a> 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. 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 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":78656,"section_number":"8.9A-607","catch_line":"Collection and enforcement by secured party","order_by":null,"url":"\/8.9A-607\/"}],"permalink":{"id":284325,"object_type":"law","relational_id":58414,"identifier":"8.9A-608","token":"8.9A\/6\/1\/8.9A-608","url":"\/8.9A-608\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-608\/","token":"8.9A\/6\/1\/8.9A-608","dublin_core":{"Title":"Application of proceeds of collection or enforcement; liability for deficiency and right to surplus","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-608","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Application of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien<\/span> secures payment or performance of an obligation, the following rules apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> A secured party<\/span> shall apply or pay over for application the cash proceeds of collection or enforcement under § 8.9A-607<\/a> in the following order<\/span> to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> the reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law<\/span>, reasonable attorney’s fees and legal expenses incurred by the secured party<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> the satisfaction of obligations secured by the security interest or agricultural lien<\/span> under which the collection or enforcement is made; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> the satisfaction of obligations secured by any subordinate security interest in or other lien<\/span> on the collateral<\/span> subject to the security interest or agricultural lien<\/span> under which the collection or enforcement is made if the secured party<\/span> receives a signed demand for proceeds before distribution of the proceeds is completed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If requested by a secured party<\/span>, a holder of a subordinate security interest or other lien<\/span> shall furnish reasonable proof of the interest or lien<\/span> within a reasonable time. Unless the holder complies, the secured party<\/span> need not comply with the holder’s demand under subsection (a) (1) (C). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> A secured party<\/span> need not apply or pay over for application noncash proceeds of collection and enforcement under § 8.9A-607<\/a> unless the failure to do so would be commercially unreasonable. A secured party<\/span> that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> A secured party<\/span> shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> No surplus or deficiency in sales of certain rights to payment. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPLICATION OF PROCEEDS OF COLLECTION OR ENFORCEMENT; LIABILITY FOR DEFICIENCY\nAND RIGHT TO SURPLUS (\u00a7 8.9A-608)\n\na. Application of proceeds, surplus, and deficiency if obligation secured. If a\nsecurity interest or agricultural lien secures payment or performance of an\nobligation, the following rules apply:\n\n 1. A secured party shall apply or pay over for application the cash proceeds\n of collection or enforcement under § 8.9A-607 in the following order to:\n\nA. the reasonable expenses of collection and enforcement and, to the extent\nprovided for by agreement and not prohibited by law, reasonable attorney’s\nfees and legal expenses incurred by the secured party;\n\nB. the satisfaction of obligations secured by the security interest or\nagricultural lien under which the collection or enforcement is made; and\n\nC. the satisfaction of obligations secured by any subordinate security interest\nin or other lien on the collateral subject to the security interest or\nagricultural lien under which the collection or enforcement is made if the\nsecured party receives a signed demand for proceeds before distribution of the\nproceeds is completed.\n\n 2. If requested by a secured party, a holder of a subordinate security\n interest or other lien shall furnish reasonable proof of the interest or lien\n within a reasonable time. Unless the holder complies, the secured party need\n not comply with the holder’s demand under subsection (a) (1) (C).\n\n 3. A secured party need not apply or pay over for application noncash proceeds\n of collection and enforcement under § 8.9A-607 unless the failure to do\n so would be commercially unreasonable. A secured party that applies or pays\n over for application noncash proceeds shall do so in a commercially reasonable\n manner.\n\n 4. A secured party shall account to and pay a debtor for any surplus, and the\n obligor is liable for any deficiency.\n\nb. No surplus or deficiency in sales of certain rights to payment. If the\nunderlying transaction is a sale of accounts, chattel paper, payment\nintangibles, or promissory notes, the debtor is not entitled to any surplus, and\nthe obligor is not liable for any deficiency.\n\nHISTORY: 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}}