                                 CODE OF VIRGINIA

NOTIFICATION OF PROPOSAL TO ACCEPT COLLATERAL (§ 8.9A-621)

a. Persons to which proposal to be sent. A secured party that desires to accept
collateral in full or partial satisfaction of the obligation it secures shall
send its proposal to:

   1. any person from which the secured party has received, before the debtor
   consented to the acceptance, a signed notification of a claim of an interest
   in the collateral;

   2. any other secured party or lienholder that, ten days before the debtor
   consented to the acceptance, held a security interest in or other lien on the
   collateral perfected by the filing of a financing statement that:

A. identified the collateral;

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

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

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

b. Proposal to be sent to secondary obligor in partial satisfaction. A secured
party that desires to accept collateral in partial satisfaction of the
obligation it secures shall send its proposal to any secondary obligor in
addition to the persons described in subsection (a).

HISTORY: Code 1950, § 55-93; 1964, cc. 219, 410, § 8.9-505; 1973, c. 509;
2000, c. 1007; 2024, c. 652.