                                 CODE OF VIRGINIA

ATTACHMENT AND ENFORCEABILITY OF SECURITY INTEREST; PROCEEDS, SUPPORTING
OBLIGATIONS; FORMAL REQUISITES (§ 8.9A-203)

a. Attachment. A security interest attaches to collateral when it becomes
enforceable against the debtor with respect to the collateral, unless an
agreement expressly postpones the time of attachment.

b. Enforceability. Except as otherwise provided in subsections (c) through (i),
a security interest is enforceable against the debtor and third parties with
respect to the collateral only if:

   1. value has been given;

   2. the debtor has rights in the collateral or the power to transfer rights in
   the collateral to a secured party; and

   3. one of the following conditions is met:

A. the debtor has signed a security agreement that provides a description of the
collateral and, if the security interest covers timber to be cut, a description
of the land concerned;

B. the collateral is not a certificated security and is in the possession of the
secured party under &#xA7; 8.9A-313 pursuant to the debtor&#8217;s security
agreement;

C. the collateral is a certificated security in registered form and the security
certificate has been delivered to the secured party under &#xA7; 8.8A-301
pursuant to the debtor&#8217;s security agreement;

D. the collateral is controllable accounts, controllable electronic records,
controllable payment intangibles, deposit accounts, electronic documents,
electronic money, investment property, or letter-of-credit rights, and the
secured party has control under &#xA7; 8.7-106, 8.9A-104, 8.9A-105, 8.9A-105.1,
8.9A-106, 8.9A-107, or 8.9A-107.1 pursuant to the debtor&#8217;s security
agreement; or

E. the collateral is chattel paper and the secured party has possession and
control under &#xA7; 8.9A-314.1 pursuant to the debtor&#8217;s security
agreement.

c. Other Uniform Commercial Code provisions. Subsection (b) is subject to &#xA7;
8.4-210 on the security interest of a collecting bank, &#xA7; 8.5A-118 on the
security interest of a letter-of-credit issuer or nominated person, &#xA7;
8.9A-110 on a security interest arising under Title 8.2 or Title 8.2A, and
&#xA7; 8.9A-206 on security interests in investment property.

d. When person becomes bound by another person&#8217;s security agreement. A
person becomes bound as debtor by a security agreement entered into by another
person if, by operation of law other than this title or by contract:

   1. the security agreement becomes effective to create a security interest in
   the person&#8217;s property; or

   2. the person becomes generally obligated for the obligations of the other
   person, including the obligation secured under the security agreement, and
   acquires or succeeds to all or substantially all of the assets of the other
   person.

e. Effect of new debtor becoming bound. If a new debtor becomes bound as debtor
by a security agreement entered into by another person:

   1. the agreement satisfies subdivision (b) (3) with respect to existing or
   after-acquired property of the new debtor to the extent the property is
   described in the agreement; and

   2. another agreement is not necessary to make a security interest in the
   property enforceable.

f. Proceeds and supporting obligations. The attachment of a security interest in
collateral gives the secured party the rights to proceeds provided by &#xA7;
8.9A-315 and is also attachment of a security interest in a supporting
obligation for the collateral.

g. Lien securing right to payment. The attachment of a security interest in a
right to payment or performance secured by a security interest or other lien on
personal or real property is also attachment of a security interest in the
security interest, mortgage, or other lien.

h. Security entitlement carried in securities account. The attachment of a
security interest in a securities account is also attachment of a security
interest in the security entitlements carried in the securities account.

i. Commodity contracts carried in commodity account. The attachment of a
security interest in a commodity account is also attachment of a security
interest in the commodity contracts carried in the commodity account.

HISTORY: Code 1950, § 6-551; 1964, c. 219, § 8.9-203; 1973, c. 509; 1984, c.
613; 1996, c. 216, § 8.9-115; 2000, c. 1007; 2004, c. 200; 2024, c. 652.