                                 CODE OF VIRGINIA

PLACE FOR BRINGING ACTION UNDER A CONTRACT OR AGREEMENT TO PROVIDE SALES-BASED
FINANCING; CERTAIN FEES PAID BY PROVIDER; CONFESSIONS OF JUDGMENT PROHIBITED (§
6.2-2234)

A. Where a provider enters into a contract or agreement with a recipient to
provide sales-based financing, any cause of action arising under such contract
or agreement shall be brought in a court in the Commonwealth. Any provision in
the contract or agreement mandating that such action be brought outside the
Commonwealth shall be unenforceable.

B. Where a contract between a provider or broker and recipient contains an
arbitration provision, such contract shall not require face-to-face arbitration
proceedings outside the jurisdiction where the recipient&#8217;s principal place
of business is located. If the contract requires face-to-face arbitration
proceedings outside such jurisdiction, such provision is unenforceable. The
enforceability of the remaining provisions of the arbitration agreement and the
method of selecting a forum for the conduct of the arbitration proceedings are
as provided in this Code, the United States Arbitration Act (P.L. 68-401), and
any applicable rules of arbitration. The provider shall pay any
arbitrators&#8217; expenses or fees or any other expenses or administrative fees
incurred in the conduct of the arbitration proceedings.

C. No sales-based financing contract shall contain any confession by judgment
provision or any similar provision. Any such provision in the contract shall be
unenforceable.

HISTORY: 2022, c. 516.