                                 CODE OF VIRGINIA

COLLECTION AND ENFORCEMENT BY SECURED PARTY (§ 8.9A-607)

a. Collection and enforcement generally. If so agreed, and in any event after
default, a secured party:

   1. may notify an account debtor or other person obligated on collateral to
   make payment or otherwise render performance to or for the benefit of the
   secured party;

   2. may take any proceeds to which the secured party is entitled under &#xA7;
   8.9A-315;

   3. may enforce the obligations of an account debtor or other person obligated
   on collateral and exercise the rights of the debtor with respect to the
   obligation of the account debtor or other person obligated on collateral to
   make payment or otherwise render performance to the debtor, and with respect
   to any property that secures the obligations of the account debtor or other
   person obligated on the collateral;

   4. if it holds a security interest in a deposit account perfected by control
   under &#xA7; 8.9A-104 (a) (1), may apply the balance of the deposit account to
   the obligation secured by the deposit account; and

   5. if it holds a security interest in a deposit account perfected by control
   under &#xA7; 8.9A-104 (a) (2) or (3), may instruct the bank to pay the balance
   of the deposit account to or for the benefit of the secured party.

b. Nonjudicial enforcement of mortgage. If necessary to enable a secured party
to exercise under subsection (a)(3) the right of a debtor to enforce a mortgage
nonjudicially, the secured party may record in the office in which a record of
the mortgage is recorded:

   1. a copy of the security agreement that creates or provides for a security
   interest in the obligation secured by the mortgage; and

   2. the secured party&#8217;s sworn affidavit in recordable form stating that:

A. a default has occurred with respect to the obligation secured by the
mortgage; and

B. the secured party is entitled to enforce the mortgage nonjudicially.

c. Commercially reasonable collection and enforcement. A secured party shall
proceed in a commercially reasonable manner if the secured party:

   1. undertakes to collect from or enforce an obligation of an account debtor or
   other person obligated on collateral; and

   2. is entitled to charge back uncollected collateral or otherwise to full or
   limited recourse against the debtor or a secondary obligor.

d. Expenses of collection and enforcement. A secured party may deduct from the
collections made pursuant to subsection (c) reasonable expenses of collection
and enforcement, including reasonable attorney&#8217;s fees and legal expenses
incurred by the secured party.

e. Duties to secured party not affected. This section does not determine whether
an account debtor, bank, or other person obligated on collateral owes a duty to
a secured party.

HISTORY: 1964, c. 219, § 8.9-502; 1973, c. 509; 2000, c. 1007; 2012, c. 155.