                                 CODE OF VIRGINIA

RIGHTS OF SELLER&#8217;S CREDITORS AGAINST SOLD GOODS (§ 8.2-402)

1. Except as provided in subsections (2) and (3), rights of unsecured creditors
of the seller with respect to goods which have been identified to a contract for
sale are subject to the buyer&#8217;s rights to recover the goods under this
title (&#xA7;&#xA7; 8.2-502 and 8.2-716).

2. A creditor of the seller may treat a sale or an identification of goods to a
contract for sale as void if as against him a retention of possession by the
seller is fraudulent under any rule of law of the state where the goods are
situated, except that retention of possession in good faith and current course
of trade by a merchant-seller for a commercially reasonable time after a sale or
identification is not fraudulent.

3. Nothing in this title shall be deemed to impair the rights of creditors of
the seller

   a. under the provisions of the title on secured transactions (Title 8.9A); or

   b. where identification to the contract or delivery is made not in current
   course of trade but in satisfaction of or as security for a preexisting claim
   for money, security or the like and is made under circumstances which under
   any rule of law of the state where the goods are situated would apart from
   this title constitute the transaction a fraudulent transfer or voidable
   preference.

HISTORY: 1964, c. 219.