                                 CODE OF VIRGINIA

DISPOSITION OF COLLATERAL AFTER DEFAULT (§ 8.9A-610)

a. Disposition after default. After default, a secured party may sell, lease,
license, or otherwise dispose of any or all of the collateral in its present
condition or following any commercially reasonable preparation or processing.

b. Commercially reasonable disposition. Every aspect of a disposition of
collateral, including the method, manner, time, place, and other terms, must be
commercially reasonable. If commercially reasonable, a secured party may dispose
of collateral by public or private proceedings, by one or more contracts, as a
unit or in parcels, and at any time and place and on any terms.

c. Purchase by secured party. A secured party may purchase collateral:

   1. at a public disposition; or

   2. at a private disposition only if the collateral is of a kind that is
   customarily sold on a recognized market or the subject of widely distributed
   standard price quotations.

d. Warranties on disposition. A contract for sale, lease, license, or other
disposition includes the warranties relating to title, possession, quiet
enjoyment, and the like which by operation of law accompany a voluntary
disposition of property of the kind subject to the contract.

e. Disclaimer of warranties. A secured party may disclaim or modify warranties
under subsection (d):

   1. in a manner that would be effective to disclaim or modify the warranties in
   a voluntary disposition of property of the kind subject to the contract of
   disposition; or

   2. by communicating to the purchaser a record evidencing the contract for
   disposition and including an express disclaimer or modification of the
   warranties.

f. Record sufficient to disclaim warranties. A record is sufficient to disclaim
warranties under subsection (e) if it indicates &#8220;There is no warranty
relating to title, possession, quiet enjoyment, or the like in this
disposition&#8221; or uses words of similar import.

HISTORY: 1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007.