                                 CODE OF VIRGINIA

FINANCE LICENSES (§ 59.1-505.8)

a. If a financier becomes a licensee in connection with its financial
accommodation contract and then transfers its contractual interest under the
license, or sublicenses the licensed computer information or informational
rights, to a licensee receiving the financial accommodation, the following rules
apply:

   1. The transfer or sublicense to the accommodated licensee is not effective
   unless:

A. the transfer or sublicense is effective under &#xA7; 59.1-505.3; or

B. the following conditions are fulfilled:

i. before the licensor delivered the information or granted the license to the
financier, the licensor received notice in a record from the financier giving
the name and location of the accommodated licensee and clearly indicating that
the license was being obtained in order to transfer the contractual interest or
sublicense the licensed information or informational rights to the accommodated
licensee;

   ii. the financier became a licensee solely to make the financial
   accommodation; and

   iii. the accommodated licensee adopts the terms of the license, which terms
   may be supplemented by the financial accommodation contract, to the extent the
   terms of the financial accommodation contract are not inconsistent with the
   license and any rights of the licensor under other law.

   2. A financier that makes a transfer that is effective under paragraph (1) (B)
   may make only the single transfer or sublicense contemplated by the notice
   unless the licensor consents to a later transfer.

b. If a financier makes an effective transfer of its contractual interest in a
license, or an effective sublicense of the licensed information or informational
rights, to an accommodated licensee, the following rules apply:

   1. The accommodated licensee&#8217;s rights and obligations are governed by:

A. the license;

B. any rights of the licensor under other law; and

C. to the extent not inconsistent with subparagraphs (A) and (B), the financial
accommodation contract, which may impose additional conditions to the
licensee&#8217;s right to use the licensed information or informational rights.

   2. The financier does not make warranties to the accommodated licensee other
   than the warranty under &#xA7; 59.1-504.1 (b) (1) and any express warranties
   in the financial accommodation contract.

HISTORY: 2000, cc. 101, 996.