{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-615.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-615.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-615.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-615.html"}],"law_id":63326,"edition_id":1,"section_id":63326,"structure_id":15263,"section_number":"8.9A-615","catch_line":"Application of proceeds of disposition; liability for deficiency and right to surplus","history":"1964, c. 219, \u00a7 8.9-504; 1973, c. 509; 2000, c. 1007; 2024, c. 652.","full_text":"a\n\nApplication of proceeds. A secured party shall apply or pay over for application the cash proceeds of disposition under \u00a7 8.9A-610 in the following order to:1\n\nthe reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, 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;2\n\nthe satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;3\n\nthe satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:A\n\nthe secured party receives from the holder of the subordinate security interest or other lien a signed demand for proceeds before distribution of the proceeds is completed; andB\n\nin a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and4\n\na secured party that is a consignor of the collateral if the secured party receives from the consignor a signed demand for proceeds before distribution of the proceeds is completed.b\n\nProof of subordinate interest. 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 does so, the secured party need not comply with the holder’s demand under subsection (a) (3).c\n\nApplication of noncash proceeds. A secured party need not apply or pay over for application noncash proceeds of disposition under § 8.9A-610 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.d\n\nSurplus or deficiency if obligation secured. If the security interest under which a disposition is made secures payment or performance of an obligation, after making the payments and applications required by subsection (a) and permitted by subsection (c):1\n\nunless subsection (a) (4) requires the secured party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and2\n\nthe obligor is liable for any deficiency.e\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:1\n\nthe debtor is not entitled to any surplus; and2\n\nthe obligor is not liable for any deficiency.f\n\nCalculation of surplus or deficiency in disposition to person related to secured party. The surplus or deficiency following a disposition is calculated based on the amount of proceeds that would have been realized in a disposition complying with this part to a transferee other than the secured party, a person related to the secured party, or a secondary obligor if:1\n\nthe transferee in the disposition is the secured party, a person related to the secured party, or a secondary obligor; and2\n\nthe amount of proceeds of the disposition is significantly below the range of proceeds that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.","order_by":null,"text":{"0":{"id":230747,"text":"Application of proceeds. A secured party shall apply or pay over for application the cash proceeds of disposition under \u00a7 8.9A-610 in the following order to:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":230748,"text":"the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, 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","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":230749,"text":"the satisfaction of obligations secured by the security interest or agricultural lien under which the disposition is made;","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":230750,"text":"the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien on the collateral if:","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"A"},"4":{"id":230751,"text":"the secured party receives from the holder of the subordinate security interest or other lien a signed demand for proceeds before distribution of the proceeds is completed; and","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"a3","next_prefix":"B"},"5":{"id":230752,"text":"in a case in which a consignor has an interest in the collateral, the subordinate security interest or other lien is senior to the interest of the consignor; and","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B4"},"6":{"id":230753,"text":"a secured party that is a consignor of the collateral if the secured party receives from the consignor a signed demand for proceeds before distribution of the proceeds is completed.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B","next_prefix":"b"},"7":{"id":230754,"text":"Proof of subordinate interest. 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 does so, the secured party need not comply with the holder’s demand under subsection (a) (3).","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"B4","next_prefix":"c"},"8":{"id":230755,"text":"Application of noncash proceeds. A secured party need not apply or pay over for application noncash proceeds of disposition under § 8.9A-610 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"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"9":{"id":230756,"text":"Surplus or deficiency if obligation secured. If the security interest under which a disposition is made secures payment or performance of an obligation, after making the payments and applications required by subsection (a) and permitted by subsection (c):","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"d1"},"10":{"id":230757,"text":"unless subsection (a) (4) requires the secured party to apply or pay over cash proceeds to a consignor, the secured party shall account to and pay a debtor for any surplus; and","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"11":{"id":230758,"text":"the obligor is liable for any deficiency.","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"e"},"12":{"id":230759,"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:","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d2","next_prefix":"e1"},"13":{"id":230760,"text":"the debtor is not entitled to any surplus; and","type":"section","prefixes":["e","1"],"prefix":"1","entire_prefix":"e1","prefix_anchor":"e1","level":2,"prior_prefix":"e","next_prefix":"e2"},"14":{"id":230761,"text":"the obligor is not liable for any deficiency.","type":"section","prefixes":["e","2"],"prefix":"2","entire_prefix":"e2","prefix_anchor":"e2","level":2,"prior_prefix":"e1","next_prefix":"f"},"15":{"id":230762,"text":"Calculation of surplus or deficiency in disposition to person related to secured party. The surplus or deficiency following a disposition is calculated based on the amount of proceeds that would have been realized in a disposition complying with this part to a transferee other than the secured party, a person related to the secured party, or a secondary obligor if:","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e2","next_prefix":"f1"},"16":{"id":230763,"text":"the transferee in the disposition is the secured party, a person related to the secured party, or a secondary obligor; and","type":"section","prefixes":["f","1"],"prefix":"1","entire_prefix":"f1","prefix_anchor":"f1","level":2,"prior_prefix":"f","next_prefix":"f2"},"17":{"id":230764,"text":"the amount of proceeds of the disposition is significantly below the range of proceeds that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.","type":"section","prefixes":["f","2"],"prefix":"2","entire_prefix":"f2","prefix_anchor":"f2","level":2,"prior_prefix":"f1"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-615\/","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 1973, chapter 509; in 2000, chapter 1007<\/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\/"},{"id":58094,"section_number":"8.9A-616","catch_line":"Explanation of calculation of surplus or deficiency","order_by":null,"url":"\/8.9A-616\/"},{"id":76014,"section_number":"8.9A-623","catch_line":"Right to redeem collateral","order_by":null,"url":"\/8.9A-623\/"},{"id":77315,"section_number":"8.9A-626","catch_line":"Action in which deficiency or surplus is in issue","order_by":null,"url":"\/8.9A-626\/"}],"refers_to":[{"id":83035,"section_number":"8.9A-610","catch_line":"Disposition of collateral after default","order_by":null,"url":"\/8.9A-610\/"}],"permalink":{"id":284353,"object_type":"law","relational_id":63326,"identifier":"8.9A-615","token":"8.9A\/6\/1\/8.9A-615","url":"\/8.9A-615\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-615\/","token":"8.9A\/6\/1\/8.9A-615","dublin_core":{"Title":"Application of proceeds of disposition; liability for deficiency and right to surplus","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-615","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Application of proceeds. A secured party<\/span> shall apply or pay over for application the cash proceeds of disposition<\/span> under \u00a7 8.9A-610<\/a> in the following order<\/span> to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the reasonable expenses of retaking, holding, preparing for disposition<\/span>, processing, and disposing, 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

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

3.<\/span> the satisfaction of obligations secured by any subordinate security interest in or other subordinate lien<\/span> on the collateral<\/span> if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> the secured party<\/span> receives from the holder of the subordinate security interest or other lien<\/span> a signed demand for proceeds before distribution of the proceeds is completed; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> in a case in which a consignor has an interest in the collateral<\/span>, the subordinate security interest or other lien<\/span> is senior to the interest of the consignor; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> a secured party<\/span> that is a consignor of the collateral<\/span> if the secured party<\/span> receives from the consignor a signed demand for proceeds before distribution of the proceeds is completed. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Proof of subordinate interest. 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 does so, the secured party<\/span> need not comply with the holder’s demand under subsection (a) (3). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Application of noncash proceeds. A secured party<\/span> need not apply or pay over for application noncash proceeds of disposition<\/span> under § 8.9A-610<\/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

d.<\/span> Surplus or deficiency if obligation secured. If the security interest under which a disposition<\/span> is made secures payment or performance of an obligation, after making the payments and applications required by subsection (a) and permitted by subsection (c): <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> unless subsection (a) (4) requires the secured party<\/span> to apply or pay over cash proceeds to a consignor, the secured party<\/span> shall account to and pay a debtor for any surplus; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the obligor is liable for any deficiency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/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: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the debtor is not entitled to any surplus; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the obligor is not liable for any deficiency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Calculation of surplus or deficiency in disposition<\/span> to person related to secured party<\/span>. The surplus or deficiency following a disposition<\/span> is calculated based on the amount of proceeds that would have been realized in a disposition<\/span> complying with this part to a transferee other than the secured party<\/span>, a person related to the secured party<\/span>, or a secondary obligor if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the transferee in the disposition<\/span> is the secured party<\/span>, a person related to the secured party<\/span>, or a secondary obligor; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the amount of proceeds of the disposition<\/span> is significantly below the range of proceeds that a complying disposition<\/span> to a person other than the secured party<\/span>, a person related to the secured party<\/span>, or a secondary obligor would have brought. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPLICATION OF PROCEEDS OF DISPOSITION; LIABILITY FOR DEFICIENCY AND RIGHT TO\nSURPLUS (\u00a7 8.9A-615)\n\na. Application of proceeds. A secured party shall apply or pay over for\napplication the cash proceeds of disposition under \u00a7 8.9A-610 in the following\norder to:\n\n 1. the reasonable expenses of retaking, holding, preparing for disposition,\n processing, and disposing, and, to the extent provided for by agreement and\n not prohibited by law, reasonable attorney’s fees and legal expenses\n incurred by the secured party;\n\n 2. the satisfaction of obligations secured by the security interest or\n agricultural lien under which the disposition is made;\n\n 3. the satisfaction of obligations secured by any subordinate security\n interest in or other subordinate lien on the collateral if:\n\nA. the secured party receives from the holder of the subordinate security\ninterest or other lien a signed demand for proceeds before distribution of the\nproceeds is completed; and\n\nB. in a case in which a consignor has an interest in the collateral, the\nsubordinate security interest or other lien is senior to the interest of the\nconsignor; and\n\n 4. a secured party that is a consignor of the collateral if the secured party\n receives from the consignor a signed demand for proceeds before distribution\n of the proceeds is completed.\n\nb. Proof of subordinate interest. If requested by a secured party, a holder of a\nsubordinate security interest or other lien shall furnish reasonable proof of\nthe interest or lien within a reasonable time. Unless the holder does so, the\nsecured party need not comply with the holder’s demand under subsection\n(a) (3).\n\nc. Application of noncash proceeds. A secured party need not apply or pay over\nfor application noncash proceeds of disposition under § 8.9A-610 unless the\nfailure to do so would be commercially unreasonable. A secured party that\napplies or pays over for application noncash proceeds shall do so in a\ncommercially reasonable manner.\n\nd. Surplus or deficiency if obligation secured. If the security interest under\nwhich a disposition is made secures payment or performance of an obligation,\nafter making the payments and applications required by subsection (a) and\npermitted by subsection (c):\n\n 1. unless subsection (a) (4) requires the secured party to apply or pay over\n cash proceeds to a consignor, the secured party shall account to and pay a\n debtor for any surplus; and\n\n 2. the obligor is liable for any deficiency.\n\ne. 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:\n\n 1. the debtor is not entitled to any surplus; and\n\n 2. the obligor is not liable for any deficiency.\n\nf. Calculation of surplus or deficiency in disposition to person related to\nsecured party. The surplus or deficiency following a disposition is calculated\nbased on the amount of proceeds that would have been realized in a disposition\ncomplying with this part to a transferee other than the secured party, a person\nrelated to the secured party, or a secondary obligor if:\n\n 1. the transferee in the disposition is the secured party, a person related to\n the secured party, or a secondary obligor; and\n\n 2. the amount of proceeds of the disposition is significantly below the range\n of proceeds that a complying disposition to a person other than the secured\n party, a person related to the secured party, or a secondary obligor would\n have brought.\n\nHISTORY: 1964, c. 219, \u00a7 8.9-504; 1973, c. 509; 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}}