                                 CODE OF VIRGINIA

NOTIFICATION BEFORE DISPOSITION OF COLLATERAL (§ 8.9A-611)

a. &#8220;Notification date.&#8221; In this section, &#8220;notification
date&#8221; means the earlier of the date on which:

   1. a secured party sends to the debtor and any secondary obligor a signed
   notification of disposition; or

   2. the debtor and any secondary obligor waive the right to notification.

b. Notification of disposition required. Except as otherwise provided in
subsection (d), a secured party that disposes of collateral under &#xA7;
8.9A-610 shall send to the persons specified in subsection (c) a reasonable
signed notification of disposition.

c. Persons to be notified. To comply with subsection (b), the secured party
shall send a signed notification of disposition to:

   1. the debtor;

   2. any secondary obligor; and

   3. if the collateral is other than consumer goods:

A. any other person from which the secured party has received, before the
notification date, a signed notification of a claim of an interest in the
collateral;

B. any other secured party or lienholder that, ten days before the notification
date, held a security interest in or other lien on the collateral perfected by
the filing of a financing statement that:

i. identified the collateral;

   ii. was indexed under the debtor&#8217;s name as of that date; and

   iii. was filed in the office in which to file a financing statement against
   the debtor covering the collateral as of that date; and

C. any other secured party that, ten days before the notification date, held a
security interest in the collateral perfected by compliance with a statute,
regulation, or treaty described in &#xA7; 8.9A-311 (a).

d. Subsection (b) inapplicable; perishable collateral; recognized market.
Subsection (b) does not apply if the collateral is perishable or threatens to
decline speedily in value or is of a type customarily sold on a recognized
market.

e. Compliance with subsection (c) (3) (B). A secured party complies with the
requirement for notification prescribed by subsection (c) (3) (B) if:

   1. not later than twenty days or earlier than thirty days before the
   notification date, the secured party requests, in a commercially reasonable
   manner, information concerning financing statements indexed under the
   debtor&#8217;s name in the office indicated in subsection (c) (3) (B); and

   2. before the notification date, the secured party:

A. did not receive a response to the request for information; or

B. received a response to the request for information and sent a signed
notification of disposition to each secured party or other lienholder named in
that response whose financing statement covered the collateral.

HISTORY: 1964, c. 219, § 8.9-504; 1973, c. 509; 2000, c. 1007; 2024, c. 652.