                                 CODE OF VIRGINIA

SPECIAL RIGHTS OF CREDITORS (§ 8.2A-308)

1. A creditor of a lessor in possession of goods subject to a lease contract may
treat the lease contract as void if as against the creditor retention of
possession by the lessor is fraudulent under any statute or rule of law, but
retention of possession in good faith and current course of trade by the lessor
for a commercially reasonable time after the lease contract becomes enforceable
is not fraudulent.

2. Nothing in this title impairs the rights of creditors of a lessor if the
lease contract (a) becomes enforceable, not in current course of trade but in
satisfaction of or as security for a pre-existing claim for money, security, or
the like, and (b) is made under circumstances which under any statute or rule of
law apart from this title would constitute the transaction a fraudulent transfer
or voidable preference.

3. A creditor of a seller may treat a sale or an identification of goods to a
contract for sale as void if as against the creditor retention of possession by
the seller is fraudulent under any statute or rule of law, but retention of
possession of the goods pursuant to a lease contract entered into by the seller
as lessee and the buyer as lessor in connection with the sale or identification
of the goods is not fraudulent if the buyer bought for value and in good faith.

HISTORY: 1991, c. 536.