                                 CODE OF VIRGINIA

SCOPE (§ 8.9A-109)

a. General scope of title. Except as otherwise provided in subsections (c) and
(d), this title applies to:

   1. a transaction, regardless of its form, that creates a security interest in
   personal property or fixtures by contract;

   2. an agricultural lien;

   3. a sale of accounts, chattel paper, payment intangibles, or promissory
   notes;

   4. a consignment;

   5. a security interest arising under &#xA7;&#xA7; 8.2-401, 8.2-505, 8.2-711
   (3), or &#xA7; 8.2A-508 (5), as provided in &#xA7; 8.9A-110; and

   6. a security interest arising under &#xA7; 8.4-210 or &#xA7; 8.5A-118.

b. Security interest in secured obligation. The application of this title to a
security interest in a secured obligation is not affected by the fact that the
obligation is itself secured by a transaction or interest to which this title
does not apply.

c. Extent to which title does not apply. This title does not apply to the extent
that:

   1. a statute, regulation, or treaty of the United States preempts this title;

   2. another statute of this Commonwealth expressly governs the creation,
   perfection, priority, or enforcement of a security interest created by this
   Commonwealth or a governmental unit of this Commonwealth;

   3. a statute of another state, a foreign country, or a governmental unit of
   another state or a foreign country, other than a statute generally applicable
   to security interests, expressly governs creation, perfection, priority, or
   enforcement of a security interest created by the state, country, or
   governmental unit; or

   4. the rights of a transferee beneficiary or nominated person under a letter
   of credit are independent and superior under &#xA7; 8.5A-114.

d. Inapplicability of title. This title does not apply to:

   1. a landlord&#8217;s lien, other than an agricultural lien;

   2. a lien, other than an agricultural lien, given by statute or other rule of
   law for services or materials, but &#xA7; 8.9A-333 applies with respect to
   priority of the lien;

   3. an assignment of a claim for wages, salary, or other compensation of an
   employee;

   4. a sale of accounts, chattel paper, payment intangibles, or promissory notes
   as part of a sale of the business out of which they arose;

   5. an assignment of accounts, chattel paper, payment intangibles, or
   promissory notes which is for the purpose of collection only;

   6. an assignment of a right to payment under a contract to an assignee that is
   also obligated to perform under the contract;

   7. an assignment of a single account, payment intangible, or promissory note
   to an assignee in full or partial satisfaction of a preexisting indebtedness;

   8. a transfer of an interest in or an assignment of a claim under a policy of
   insurance or contract for an annuity including a variable, other than an
   assignment by or to a health-care provider of a health-care-insurance
   receivable and any subsequent assignment of the right to payment, but
   &#xA7;&#xA7; 8.9A-315 and 8.9A-322 apply with respect to proceeds and
   priorities in proceeds;

   9. an assignment of a right represented by a judgment, other than a judgment
   taken on a right to payment that was collateral;

   10. a right of recoupment or set-off, but:

A. &#xA7; 8.9A-340 applies with respect to the effectiveness of rights of
recoupment or set-off against deposit accounts; and

B. § 8.9A-404 applies with respect to defenses or claims of an account debtor;

   11. the creation or transfer of an interest in or lien on real property,
   including a lease or rents thereunder, except to the extent that provision is
   made for:

A. liens on real property in &#xA7;&#xA7; 8.9A-203 and 8.9A-308;

B. fixtures in &#xA7; 8.9A-334;

C. fixture filings in &#xA7;&#xA7; 8.9A-501, 8.9A-502, 8.9A-512, 8.9A-516, and
8.9A-519; and

D. security agreements covering personal and real property in § 8.9A-604;

   12. an assignment of a claim arising in tort, other than a commercial tort
   claim, but &#xA7;&#xA7; 8.9A-315 and 8.9A-322 apply with respect to proceeds
   and priorities in proceeds;

   13. an assignment of a deposit account in a consumer transaction, but
   &#xA7;&#xA7; 8.9A-315 and 8.9A-322 apply with respect to proceeds and
   priorities in proceeds;

   14. a sale of promissory notes by the Commonwealth or a governmental unit of
   the Commonwealth in connection with or in furtherance of the exercise of the
   borrowing power of the Commonwealth or a governmental unit of the
   Commonwealth.

e. Except as provided below, the creation, perfection, priority and enforcement
of a security interest, lien or pledge created, made or granted by the
Commonwealth or a governmental unit of the Commonwealth to pay or secure any
bonds, notes, obligations or other debt securities issued thereby shall be
governed by &#xA7; 2.2-4902.1 and this title shall not apply to such a security
interest, lien or pledge. Security interests, liens or pledges created by the
Commonwealth or a governmental unit of this Commonwealth in goods or software,
or the proceeds thereof, shall be governed by this title.

HISTORY: 1964, c. 219, §§ 8.9-102, 8.9-104; 1973, c. 509; 1974, c. 190; 1997,
c. 343; 2000, c. 1007; 2001, cc. 289, 296.