CODE OF VIRGINIA

UNKNOWN DEBTOR OR SECONDARY OBLIGOR (§ 8.9A-605)

a. In general: No duty owed by secured party. Except as provided in subsection
(b), a secured party does not owe a duty based on its status as secured party:

   1. to a person that is a debtor or obligor, unless the secured party knows:

A. that the person is a debtor or obligor;

B. the identity of the person; and

C. how to communicate with the person; or

   2. to a secured party or lienholder that has filed a financing statement
   against a person, unless the secured party knows:

A. that the person is a debtor; and

B. the identity of the person.

b. Exception: Secured party owes duty to debtor or obligor. A secured party owes
a duty based on its status as a secured party to a person if, at the time the
secured party obtains control of collateral that is a controllable account,
controllable electronic record, or controllable payment intangible or at the
time the security interest attaches to the collateral, whichever is later:

   1. the person is a debtor or obligor; and

   2. the secured party knows that the information in subsection (a)(1)(A), (B),
   or

c. relating to the person is not provided by the collateral, a record attached
to or logically associated with the collateral, or the system in which the
collateral is recorded.

HISTORY: 2000, c. 1007; 2024, c. 652.