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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>79922</law_id><section_number>8.2A-308</section_number><catch_line>Special rights of creditors</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>8.2A-307</reference><reference>8.7-504</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="8.2A">Commercial Code &#x2014; Leases</unit><unit label="part" level="2" order_by="1" identifier="3">Effect of Lease Contract</unit></structure><text>
						<section id="1"><p><span class="prefix-number">1.</span> A <span class="dictionary">creditor</span> of a lessor in <span class="dictionary">possession</span> of goods subject to a lease <span class="dictionary">contract</span> may treat the lease <span class="dictionary">contract</span> as void if as against the <span class="dictionary">creditor</span> retention of <span class="dictionary">possession</span> by the lessor is fraudulent under any <span class="dictionary">statute</span> or rule of <span class="dictionary">law</span>, but retention of <span class="dictionary">possession</span> in good faith and current course of trade by the lessor for a commercially reasonable time after the lease <span class="dictionary">contract</span> becomes enforceable is not fraudulent. <a id="paragraph-286242" class="section-permalink" href="https://vacode.org/8.2A-308/#1"><i class="fa fa-link"/></a></p></section>
						<section id="2"><p><span class="prefix-number">2.</span> Nothing in this title impairs the rights of <span class="dictionary">creditors</span> of a lessor if the lease <span class="dictionary">contract</span> (a) becomes enforceable, not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like, and (b) is made under circumstances which under any <span class="dictionary">statute</span> or rule of <span class="dictionary">law</span> apart from this title would constitute the transaction a <span class="dictionary">fraudulent transfer</span> or voidable preference. <a id="paragraph-286243" class="section-permalink" href="https://vacode.org/8.2A-308/#2"><i class="fa fa-link"/></a></p></section>
						<section id="3"><p><span class="prefix-number">3.</span> A <span class="dictionary">creditor</span> of a seller may treat a sale or an identification of goods to a <span class="dictionary">contract</span> for sale as void if as against the <span class="dictionary">creditor</span> retention of <span class="dictionary">possession</span> by the seller is fraudulent under any <span class="dictionary">statute</span> or rule of <span class="dictionary">law</span>, but retention of <span class="dictionary">possession</span> of the goods pursuant to a lease <span class="dictionary">contract</span> entered into by the seller as lessee and the buyer as lessor in connection with the sale or identification of the goods is not fraudulent if the buyer bought for value and in good faith. <a id="paragraph-286244" class="section-permalink" href="https://vacode.org/8.2A-308/#3"><i class="fa fa-link"/></a></p></section></text><history>1991, c. 536.</history><metadata></metadata></law>
