<?xml version="1.0"?>
<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>63861</law_id><section_number>2.2-4902.1</section_number><catch_line>Pledges and security interests created by governmental units</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>8.9A-109</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="2.2">Administration of Government</unit><unit label="subtitle" level="2" order_by="1" identifier="II">Administration of State Government</unit><unit label="part" level="3" order_by="1" identifier="B">Transaction of Public Business</unit><unit label="chapter" level="4" order_by="1" identifier="49">Public Debt; Issuance of Bonds and Certificates of Indebtedness</unit></structure><text>
						<section><p>Except for security interests, <span class="dictionary">liens</span> or pledges in goods or software, or the proceeds thereof, described in &#xA7;&#xA0;<a class="law" title="Scope" href="/8.9A-109/">8.9A-109</a>(e), the creation, perfection, priority and enforcement of a security interest, <span class="dictionary">lien</span> or pledge created, made or granted by the Commonwealth or a governmental unit of the Commonwealth, as defined in &#xA7;&#xA0;<a class="law" title="Definitions and index of definitions" href="/8.9A-102/">8.9A-102</a>, to pay or secure any <span class="dictionary">bonds</span>, notes, obligations or other debt securities, herein collectively called &#x201C;<span class="dictionary">bonds</span>,&#x201D; shall be governed by this section, the provisions of <span class="dictionary">law</span> under which the <span class="dictionary">bonds</span> were authorized, and the <span class="dictionary">ordinance</span>, resolution, trust agreement, indenture, financing agreement or similar instrument securing the <span class="dictionary">bonds</span>, herein called the &#x201C;security interest.&#x201D; Property pledged or in which a security interest is created for the payment or security of any <span class="dictionary">bonds</span>, whether presently held by the governmental unit or as thereafter received by or otherwise credited to the governmental unit, shall immediately be subject to the <span class="dictionary">lien</span> of such pledge or security interest without any physical delivery, control, filing or further act. The <span class="dictionary">lien</span> of such pledge or security interest made or granted in the security instrument shall have priority over any other obligations or liabilities of the governmental unit, except as may be otherwise provided in the security instrument. The <span class="dictionary">lien</span> of each such pledge or security interest shall be valid, binding and enforceable as against all persons having claims of any kind in <span class="dictionary">tort</span>, <span class="dictionary">contract</span>, or otherwise against the governmental unit regardless of whether such persons have notice of such pledge or security interest.</p></section></text><history>2001, cc. 289, 296, &#xA7; 2.1-304.1:2.</history><metadata></metadata></law>
