                                 CODE OF VIRGINIA

ADDITIONAL DUTIES OF SECURED PARTY HAVING CONTROL OF COLLATERAL (§ 8.9A-208)

a. Applicability of section. This section applies to cases in which there is no
outstanding secured obligation and the secured party is not committed to make
advances, incur obligations, or otherwise give value.

b. Duties of secured party after receiving demand from debtor. Within 10 days
after receiving a signed demand by the debtor:

   1. a secured party having control of a deposit account under &#xA7; 8.9A-104
   (a) (2) shall send to the bank with which the deposit account is maintained a
   signed record that releases the bank from any further obligation to comply
   with instructions originated by the secured party;

   2. a secured party having control of a deposit account under &#xA7; 8.9A-104
   (a) (3) shall:

A. pay the debtor the balance on deposit in the deposit account; or

B. transfer the balance on deposit into a deposit account in the debtor&#8217;s
name;

   3. a secured party, other than a buyer, having control  under &#xA7; 8.9A-105
   of an authoritative electronic copy of a record evidencing chattel paper shall
   transfer control of the electronic copy to a debtor or a person designated by
   the debtor;

   4. a secured party having control of investment property under &#xA7; 8.8A-106
   (d) (2) or &#xA7; 8.9A-106 (b) shall send to the securities intermediary or
   commodity intermediary with which the security entitlement or commodity
   contract is maintained a signed record that releases the securities
   intermediary or commodity intermediary from any further obligation to comply
   with entitlement orders or directions originated by the secured party;

   5. a secured party having control of a letter-of-credit right under &#xA7;
   8.9A-107 shall send to each person having an unfulfilled obligation to pay or
   deliver proceeds of the letter of credit to the secured party a signed release
   from any further obligation to pay or deliver proceeds of the letter of credit
   to the secured party;

   6. a secured party having control  under &#xA7; 8.7-106 of an authoritative
   electronic copy of an electronic document of title shall transfer control of
   the electronic copy to the debtor or a person designated by the debtor;

   7. a secured party having control under &#xA7; 8.9A-105.1 of electronic money
   shall transfer control of the electronic money to the debtor or a person
   designated by the debtor; and

   8. a secured party having control under &#xA7; 8.12-105 of a controllable
   electronic record, other than a buyer of a controllable account or
   controllable payment intangible evidenced by the controllable electronic
   record, shall transfer control of the controllable electronic record to the
   debtor or a person designated by the debtor.

HISTORY: 2000, c. 1007; 2004, c. 200; 2024, c. 652.