                                 CODE OF VIRGINIA

PROCEDURE IF SECURITY AGREEMENT COVERS REAL PROPERTY OR FIXTURES (§ 8.9A-604)

a. Enforcement; personal and real property. If a security agreement covers both
personal and real property, a secured party may proceed:

   1. under this part as to the personal property without prejudicing any rights
   with respect to the real property; or

   2. as to both the personal property and the real property in accordance with
   the rights with respect to the real property, in which case the other
   provisions of this part do not apply.

b. Enforcement; fixtures. Subject to subsection (c), if a security agreement
covers goods that are or become fixtures, a secured party may proceed:

   1. under this part; or

   2. in accordance with the rights with respect to real property, in which case
   the other provisions of this part do not apply.

c. Removal of fixtures. Subject to the other provisions of this part, if a
secured party holding a security interest in fixtures has priority over all
owners and encumbrancers of the real property, the secured party, after default,
may remove the collateral from the real property.

d. Injury caused by removal. A secured party that removes collateral shall
promptly reimburse any encumbrancer or owner of the real property, other than
the debtor, for the cost of repair of any physical injury caused by the removal.
The secured party need not reimburse the encumbrancer or owner for any
diminution in value of the real property caused by the absence of the goods
removed or by any necessity of replacing them. 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: 1964, c. 219, §§ 8.9-313, 8.9-501; 1973, c. 509; 1983, c. 204; 2000,
c. 1007.