                                 CODE OF VIRGINIA

ACCESSIONS (§ 8.9A-335)

a. Creation of security interest in accession. A security interest may be
created in an accession and continues in collateral that becomes an accession.

b. Perfection of security interest. If a security interest is perfected when the
collateral becomes an accession, the security interest remains perfected in the
collateral.

c. Priority of security interest. Except as otherwise provided in subsection
(d), the other provisions of this part determine the priority of a security
interest in an accession.

d. Compliance with certificate-of-title statute. A security interest in an
accession is subordinate to a security interest in the whole which is perfected
by compliance with the requirements of a certificate-of-title statute under
&#xA7; 8.9A-311 (b).

e. Removal of accession after default. After default, subject to Part 6 (&#xA7;
8.9A-601 et seq.) of this title, a secured party may remove an accession from
other goods if the security interest in the accession has priority over the
claims of every person having an interest in the whole.

f. Reimbursement following removal. A secured party that removes an accession
from other goods under subsection (e) shall promptly reimburse any holder of a
security interest or other lien on, or owner of, the whole or of the other
goods, other than the debtor, for the cost of repair of any physical injury to
the whole or the other goods. The secured party need not reimburse the holder or
owner for any diminution in value of the whole or the other goods caused by the
absence of the accession removed or by any necessity for replacing it. A person
entitled to reimbursement may refuse permission to remove until the secured
party gives adequate assurance for the performance of the obligation to
reimburse.

HISTORY: 2000, c. 1007.