                                 CODE OF VIRGINIA

SECURITY INTERESTS SUBSEQUENTLY CREATED (§ 46.2-637)

Security interests, other than those in inventory held for sale, in motor
vehicles, trailers, or semitrailers created by the voluntary act of the owner
after the original issue of a certificate of title to the owner must be shown on
the certificate of title. In such cases, the owner shall file an application
with the Department on a form furnished for that purpose, setting forth the
security interests and whatever additional information the Department may deem
necessary. If satisfied that it is proper for the security interest to be
recorded, when the certificate of title covering the motor vehicle, trailer, or
semitrailer, is surrendered, the Department shall issue a new certificate of
title, showing security interests in the order of their priority according to
the date of the filing of the application. For the purpose of recording a
subsequent security interest, the Commissioner may require any secured party to
deliver to him the certificate of title. The new certificate shall be sent or
delivered to the secured party from whom the prior certificate was obtained.
Notwithstanding any other provision of law, a security interest in a motor
vehicle, trailer, or semitrailer which is inventory held for sale shall be
perfected only as provided in §§ 8.9A-301 through 8.9A-527.

HISTORY: Code 1950, § 46-70; 1958, c. 541, § 46.1-70; 1966, c. 558; 1989, c.
727; 2006, c. 896.