                                 CODE OF VIRGINIA

PLEDGES AND SECURITY INTERESTS CREATED BY GOVERNMENTAL UNITS (§ 2.2-4902.1)

Except for security interests, liens or pledges in goods or software, or the
proceeds thereof, described in § 8.9A-109(e), the creation, perfection,
priority and enforcement of a security interest, lien or pledge created, made or
granted by the Commonwealth or a governmental unit of the Commonwealth, as
defined in § 8.9A-102, to pay or secure any bonds, notes, obligations or other
debt securities, herein collectively called &#8220;bonds,&#8221; shall be
governed by this section, the provisions of law under which the bonds were
authorized, and the ordinance, resolution, trust agreement, indenture, financing
agreement or similar instrument securing the bonds, herein called the
&#8220;security interest.&#8221; Property pledged or in which a security
interest is created for the payment or security of any bonds, 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 lien of such
pledge or security interest without any physical delivery, control, filing or
further act. The lien 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 lien of each such pledge or security interest shall be
valid, binding and enforceable as against all persons having claims of any kind
in tort, contract, or otherwise against the governmental unit regardless of
whether such persons have notice of such pledge or security interest.

HISTORY: 2001, cc. 289, 296, § 2.1-304.1:2.