{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.9A-620.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.9A-620.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.9A-620.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.9A-620.html"}],"law_id":83620,"edition_id":1,"section_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","history":"Code 1950, \u00a7 55-93; 1964, cc. 219, 410, \u00a7 8.9-505; 1973, c. 509; 2000, c. 1007; 2024, c. 652.","full_text":"a\n\nConditions to acceptance in satisfaction. Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:1\n\nthe debtor consents to the acceptance under subsection (c);2\n\nthe secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:A\n\na person to which the secured party was required to send a proposal under § 8.9A-621; orB\n\nany other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;3\n\nsubsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to § 8.9A-624.b\n\nPurported acceptance ineffective. A purported or apparent acceptance of collateral under this section is ineffective unless:1\n\nthe secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and2\n\nthe conditions of subsection (a) are met.c\n\nDebtor’s consent. For purposes of this section:1\n\na debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and2\n\na debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:A\n\nsends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;B\n\nin the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; andC\n\ndoes not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.d\n\nEffectiveness of notification. To be effective under subsection (a) (2), a notification of objection must be received by the secured party:1\n\nin the case of a person to which the proposal was sent pursuant to § 8.9A-621, within twenty days after notification was sent to that person; and2\n\nin other cases:A\n\nwithin twenty days after the last notification was sent pursuant to § 8.9A-621; orB\n\nif a notification was not sent, before the debtor consents to the acceptance under subsection (c).e\n\nMandatory disposition of consumer goods.\n\t\t\tA secured party that has taken possession of collateral shall dispose of the collateral pursuant to \u00a7 8.9A-610 within the time specified in subsection (f) if:1\n\nsixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or2\n\nsixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods.f\n\nCompliance with mandatory disposition requirement. To comply with subsection (e), the secured party shall dispose of the collateral:1\n\nwithin ninety days after taking possession; or2\n\nwithin any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.g\n\nNo partial satisfaction in consumer transaction. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","order_by":null,"text":{"0":{"id":299651,"text":"Conditions to acceptance in satisfaction. Except as otherwise provided in subsection (g), a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":299652,"text":"the debtor consents to the acceptance under subsection (c);","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":299653,"text":"the secured party does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by:","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"A"},"3":{"id":299654,"text":"a person to which the secured party was required to send a proposal under § 8.9A-621; or","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"a2","next_prefix":"B"},"4":{"id":299655,"text":"any other person, other than the debtor, holding an interest in the collateral subordinate to the security interest that is the subject of the proposal;","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B3"},"5":{"id":299656,"text":"subsection (e) does not require the secured party to dispose of the collateral or the debtor waives the requirement pursuant to § 8.9A-624.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B","next_prefix":"b"},"6":{"id":299657,"text":"Purported acceptance ineffective. A purported or apparent acceptance of collateral under this section is ineffective unless:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"B3","next_prefix":"b1"},"7":{"id":299658,"text":"the secured party consents to the acceptance in a signed record or sends a proposal to the debtor; and","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"8":{"id":299659,"text":"the conditions of subsection (a) are met.","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"c"},"9":{"id":299660,"text":"Debtor’s consent. For purposes of this section:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b2","next_prefix":"c1"},"10":{"id":299661,"text":"a debtor consents to an acceptance of collateral in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default; and","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"11":{"id":299662,"text":"a debtor consents to an acceptance of collateral in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default or the secured party:","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"A"},"12":{"id":299663,"text":"sends to the debtor after default a proposal that is unconditional or subject only to a condition that collateral not in the possession of the secured party be preserved or maintained;","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"c2","next_prefix":"B"},"13":{"id":299664,"text":"in the proposal, proposes to accept collateral in full satisfaction of the obligation it secures; and","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"14":{"id":299665,"text":"does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"d"},"15":{"id":299666,"text":"Effectiveness of notification. To be effective under subsection (a) (2), a notification of objection must be received by the secured party:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"C","next_prefix":"d1"},"16":{"id":299667,"text":"in the case of a person to which the proposal was sent pursuant to § 8.9A-621, within twenty days after notification was sent to that person; and","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"17":{"id":299668,"text":"in other cases:","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"A"},"18":{"id":299669,"text":"within twenty days after the last notification was sent pursuant to § 8.9A-621; or","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"d2","next_prefix":"B"},"19":{"id":299670,"text":"if a notification was not sent, before the debtor consents to the acceptance under subsection (c).","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"e"},"20":{"id":299671,"text":"Mandatory disposition of consumer goods.\n\t\t\tA secured party that has taken possession of collateral shall dispose of the collateral pursuant to \u00a7 8.9A-610 within the time specified in subsection (f) if:","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"B","next_prefix":"e1"},"21":{"id":299672,"text":"sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or","type":"section","prefixes":["e","1"],"prefix":"1","entire_prefix":"e1","prefix_anchor":"e1","level":2,"prior_prefix":"e","next_prefix":"e2"},"22":{"id":299673,"text":"sixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods.","type":"section","prefixes":["e","2"],"prefix":"2","entire_prefix":"e2","prefix_anchor":"e2","level":2,"prior_prefix":"e1","next_prefix":"f"},"23":{"id":299674,"text":"Compliance with mandatory disposition requirement. To comply with subsection (e), the secured party shall dispose of the collateral:","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e2","next_prefix":"f1"},"24":{"id":299675,"text":"within ninety days after taking possession; or","type":"section","prefixes":["f","1"],"prefix":"1","entire_prefix":"f1","prefix_anchor":"f1","level":2,"prior_prefix":"f","next_prefix":"f2"},"25":{"id":299676,"text":"within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default.","type":"section","prefixes":["f","2"],"prefix":"2","entire_prefix":"f2","prefix_anchor":"f2","level":2,"prior_prefix":"f1","next_prefix":"g"},"26":{"id":299677,"text":"No partial satisfaction in consumer transaction. In a consumer transaction, a secured party may not accept collateral in partial satisfaction of the obligation it secures.","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f2"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-620\/","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, chapters 219 and 410; in 1973, chapter 509; in 2000, chapter 1007<\/a>; in 2024, chapter 652<\/a>.<\/p>","references":[{"id":58431,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","order_by":null,"url":"\/8.9A-102\/"},{"id":74406,"section_number":"8.9A-602","catch_line":"Waiver and variance of rights and duties","order_by":null,"url":"\/8.9A-602\/"},{"id":86883,"section_number":"8.9A-624","catch_line":"Waiver","order_by":null,"url":"\/8.9A-624\/"}],"refers_to":[{"id":83035,"section_number":"8.9A-610","catch_line":"Disposition of collateral after default","order_by":null,"url":"\/8.9A-610\/"},{"id":69990,"section_number":"8.9A-621","catch_line":"Notification of proposal to accept collateral","order_by":null,"url":"\/8.9A-621\/"}],"permalink":{"id":284373,"object_type":"law","relational_id":83620,"identifier":"8.9A-620","token":"8.9A\/6\/1\/8.9A-620","url":"\/8.9A-620\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.9A-620\/","token":"8.9A\/6\/1\/8.9A-620","dublin_core":{"Title":"Acceptance of collateral in full or partial satisfaction of obligation; compulsory disposition of collateral","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-620","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Conditions to acceptance in satisfaction. Except as otherwise provided in subsection (g), a secured party<\/span> may accept collateral<\/span> in full or partial satisfaction of the obligation it secures only if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the debtor consents to the acceptance under subsection (c); <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the secured party<\/span> does not receive, within the time set forth in subsection (d), a notification of objection to the proposal signed by: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> a person to which the secured party<\/span> was required to send a proposal under § 8.9A-621<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> any other person, other than the debtor, holding an interest in the collateral<\/span> subordinate to the security interest that is the subject of the proposal; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> subsection (e) does not require the secured party<\/span> to dispose of the collateral<\/span> or the debtor waives<\/span> the requirement pursuant to § 8.9A-624<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Purported acceptance ineffective. A purported or apparent acceptance of collateral<\/span> under this section is ineffective unless: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the secured party<\/span> consents to the acceptance in a signed record or sends a proposal to the debtor; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the conditions of subsection (a) are met. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Debtor’s consent. For purposes of this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a debtor consents to an acceptance of collateral<\/span> in partial satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a debtor consents to an acceptance of collateral<\/span> in full satisfaction of the obligation it secures only if the debtor agrees to the terms of the acceptance in a record signed after default<\/span> or the secured party<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> sends to the debtor after default<\/span> a proposal that is unconditional or subject only to a condition that collateral<\/span> not in the possession<\/span> of the secured party<\/span> be preserved or maintained; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> in the proposal, proposes to accept collateral<\/span> in full satisfaction of the obligation it secures; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> does not receive a notification of objection signed by the debtor within twenty days after the proposal is sent. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Effectiveness of notification. To be effective under subsection (a) (2), a notification of objection must be received by the secured party<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> in the case of a person to which the proposal was sent pursuant to § 8.9A-621<\/a>, within twenty days after notification was sent to that person; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> in other cases: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> within twenty days after the last notification was sent pursuant to § 8.9A-621<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> if a notification was not sent, before the debtor consents to the acceptance under subsection (c). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Mandatory disposition<\/span> of consumer goods.\n\t\t\tA secured party<\/span> that has taken possession<\/span> of collateral<\/span> shall dispose of the collateral<\/span> pursuant to \u00a7 8.9A-610<\/a> within the time specified in subsection (f) if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> sixty percent of the cash price has been paid in the case of a purchase-money security interest in consumer goods; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> sixty percent of the principal amount of the obligation secured has been paid in the case of a nonpurchase-money security interest in consumer goods. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Compliance with mandatory disposition<\/span> requirement. To comply with subsection (e), the secured party<\/span> shall dispose of the collateral<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> within ninety days after taking possession<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> within any longer period to which the debtor and all secondary obligors have agreed in an agreement to that effect entered into and signed after default<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> No partial satisfaction in consumer transaction. In a consumer transaction, a secured party<\/span> may not accept collateral<\/span> in partial satisfaction of the obligation it secures. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nACCEPTANCE OF COLLATERAL IN FULL OR PARTIAL SATISFACTION OF OBLIGATION;\nCOMPULSORY DISPOSITION OF COLLATERAL (\u00a7 8.9A-620)\n\na. Conditions to acceptance in satisfaction. Except as otherwise provided in\nsubsection (g), a secured party may accept collateral in full or partial\nsatisfaction of the obligation it secures only if:\n\n 1. the debtor consents to the acceptance under subsection (c);\n\n 2. the secured party does not receive, within the time set forth in subsection\n (d), a notification of objection to the proposal signed by:\n\nA. a person to which the secured party was required to send a proposal under\n§ 8.9A-621; or\n\nB. any other person, other than the debtor, holding an interest in the\ncollateral subordinate to the security interest that is the subject of the\nproposal;\n\n 3. subsection (e) does not require the secured party to dispose of the\n collateral or the debtor waives the requirement pursuant to § 8.9A-624.\n\nb. Purported acceptance ineffective. A purported or apparent acceptance of\ncollateral under this section is ineffective unless:\n\n 1. the secured party consents to the acceptance in a signed record or sends a\n proposal to the debtor; and\n\n 2. the conditions of subsection (a) are met.\n\nc. Debtor’s consent. For purposes of this section:\n\n 1. a debtor consents to an acceptance of collateral in partial satisfaction of\n the obligation it secures only if the debtor agrees to the terms of the\n acceptance in a record signed after default; and\n\n 2. a debtor consents to an acceptance of collateral in full satisfaction of\n the obligation it secures only if the debtor agrees to the terms of the\n acceptance in a record signed after default or the secured party:\n\nA. sends to the debtor after default a proposal that is unconditional or subject\nonly to a condition that collateral not in the possession of the secured party\nbe preserved or maintained;\n\nB. in the proposal, proposes to accept collateral in full satisfaction of the\nobligation it secures; and\n\nC. does not receive a notification of objection signed by the debtor within\ntwenty days after the proposal is sent.\n\nd. Effectiveness of notification. To be effective under subsection (a) (2), a\nnotification of objection must be received by the secured party:\n\n 1. in the case of a person to which the proposal was sent pursuant to §\n 8.9A-621, within twenty days after notification was sent to that person; and\n\n 2. in other cases:\n\nA. within twenty days after the last notification was sent pursuant to §\n8.9A-621; or\n\nB. if a notification was not sent, before the debtor consents to the acceptance\nunder subsection (c).\n\ne. Mandatory disposition of consumer goods.\n\t\t\tA secured party that has taken possession of collateral shall dispose of the\ncollateral pursuant to \u00a7 8.9A-610 within the time specified in subsection (f)\nif:\n\n 1. sixty percent of the cash price has been paid in the case of a\n purchase-money security interest in consumer goods; or\n\n 2. sixty percent of the principal amount of the obligation secured has been\n paid in the case of a nonpurchase-money security interest in consumer goods.\n\nf. Compliance with mandatory disposition requirement. To comply with subsection\n(e), the secured party shall dispose of the collateral:\n\n 1. within ninety days after taking possession; or\n\n 2. within any longer period to which the debtor and all secondary obligors\n have agreed in an agreement to that effect entered into and signed after\n default.\n\ng. No partial satisfaction in consumer transaction. In a consumer transaction, a\nsecured party may not accept collateral in partial satisfaction of the\nobligation it secures.\n\nHISTORY: Code 1950, \u00a7 55-93; 1964, cc. 219, 410, \u00a7 8.9-505; 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}}