                                 CODE OF VIRGINIA

EFFECT OF TRANSFER OF CONTRACTUAL INTEREST (§ 59.1-505.4)

a. A transfer of &#8220;the contract&#8221; or of &#8220;all my rights under the
contract,&#8221; or a transfer in similar general terms, is a transfer of all
contractual interests under the contract. Whether the transfer is effective is
determined by &#xA7;&#xA7; 59.1-505.3 and 59.1-505.8 (a) (1) (B).

b. The following rules apply to a transfer of a party&#8217;s contractual
interests:

   1. The transferee is subject to all contractual use terms.

   2. Unless the language or circumstances otherwise indicate, as in a transfer
   as security, the transfer delegates the duties of the transferor and transfers
   its rights.

   3. Acceptance of the transfer is a promise by the transferee to perform the
   delegated duties. The promise is enforceable by the transferor and any other
   party to the original contract.

   4. The transfer does not relieve the transferor of any duty to perform, or of
   liability for breach of contract, unless the other party to the original
   contract agrees that the transfer has that effect.

c. A party to the original contract, other than the transferor, may treat a
transfer that conveys a right or duty of performance without its consent as
creating reasonable grounds for insecurity and, without prejudice to the
party&#8217;s rights against the transferor, may demand assurances from the
transferee under &#xA7; 59.1-507.8.

HISTORY: 2000, cc. 101, 996.