                                 CODE OF VIRGINIA

PERFECTION OF SECURITY INTERESTS IN CHATTEL PAPER, CONTROLLABLE ACCOUNTS,
CONTROLLABLE ELECTRONIC RECORDS, CONTROLLABLE PAYMENT INTANGIBLES, DEPOSIT
ACCOUNTS, DOCUMENTS, GOODS COVERED BY DOCUMENTS, INSTRUMENTS, INVESTMENT
PROPERTY, LETTER-OF-CREDIT RIGHTS, AND MONEY; PERFECTION BY PERMISSIVE FILING,
TEMPORARY PERFECTION WITHOUT FILING OR TRANSFER OF POSSESSION (§ 8.9A-312)

a. Perfection by filing permitted. A security interest in chattel paper,
controllable accounts, controllable electronic records, controllable payment
intangibles, instruments, investment property, or negotiable documents may be
perfected by filing.

b. Control or possession of certain collateral. Except as otherwise provided in
§ 8.9A-315 (c) and (d) for proceeds:

   1. a security interest in a deposit account may be perfected only by control
   under &#xA7; 8.9A-314;

   2. except as otherwise provided in &#xA7; 8.9A-308 (d), a security interest in
   a letter-of-credit right may be perfected only by control under &#xA7;
   8.9A-314;

   3. a security interest in tangible money may be perfected only by the secured
   party&#8217;s taking possession under &#xA7; 8.9A-313; and

   4. a security interest in electronic money may be perfected only by control
   under &#xA7; 8.9A-314.

c. Goods covered by negotiable document. While goods are in the possession of a
bailee that has issued a negotiable document covering the goods:

   1. a security interest in the goods may be perfected by perfecting a security
   interest in the document; and

   2. a security interest perfected in the document has priority over any
   security interest that becomes perfected in the goods by another method during
   that time.

d. Goods covered by nonnegotiable document. While goods are in the possession of
a bailee that has issued a nonnegotiable document covering the goods, a security
interest in the goods may be perfected by:

   1. issuance of a document in the name of the secured party;

   2. the bailee&#8217;s receipt of notification of the secured party&#8217;s
   interest; or

   3. filing as to the goods.

e. Temporary perfection; new value. A security interest in certificated
securities, negotiable documents, or instruments is perfected without filing or
the taking of possession or control for a period of 20 days from the time it
attaches to the extent that it arises for new value given under a signed
security agreement.

f. Temporary perfection; goods or documents made available to debtor. A
perfected security interest in a negotiable document or goods in possession of a
bailee, other than one that has issued a negotiable document for the goods,
remains perfected for 20 days without filing if the secured party makes
available to the debtor the goods or documents representing the goods for the
purpose of:

   1. ultimate sale or exchange; or

   2. loading, unloading, storing, shipping, transshipping, manufacturing,
   processing, or otherwise dealing with them in a manner preliminary to their
   sale or exchange.

g. Temporary perfection; delivery of security certificate or instrument to
debtor. A perfected security interest in a certificated security or instrument
remains perfected for 20 days without filing if the secured party delivers the
security certificate or instrument to the debtor for the purpose of:

   1. ultimate sale or exchange; or

   2. presentation, collection, enforcement, renewal, or registration of
   transfer.

h. Expiration of temporary perfection. After the 20-day period specified in
subsection (e), (f), or (g) expires, perfection depends upon compliance with
this title.

HISTORY: 1973, c. 509, § 8.9-304; 1984, c. 613; 1996, c. 216, § 8.9-115; 1997,
c. 343; 2000, c. 1007; 2004, c. 200; 2024, c. 652.