                                 CODE OF VIRGINIA

REMEDIES FOR SECURED PARTY&#8217;S FAILURE TO COMPLY WITH TITLE (§ 8.9A-625)

a. Judicial orders concerning noncompliance. If it is established that a secured
party is not proceeding in accordance with this title, a court may order or
restrain collection, enforcement, or disposition of collateral on appropriate
terms and conditions.

b. Damages for noncompliance. Subject to subsections (c), (d), and (f), a person
is liable for damages in the amount of any loss caused by a failure to comply
with this title. Loss caused by a failure to comply may include loss resulting
from the debtor&#8217;s inability to obtain, or increased costs of, alternative
financing.

c. Persons entitled to recover damages; statutory damages in consumer-goods
transaction. Except as otherwise provided in § 8.9A-628:

   1. a person that, at the time of the failure, was a debtor, was an obligor, or
   held a security interest in or other lien on the collateral may recover
   damages under subsection (b) for its loss; and

   2. if the collateral is consumer goods, a person that was a debtor or a
   secondary obligor at the time a secured party failed to comply with this part
   may recover for that failure in any event an amount not less than the credit
   service charge plus ten percent of the principal amount of the obligation or
   the time-price differential plus ten percent of the cash price.

d. Recovery when deficiency eliminated or reduced. A debtor whose deficiency is
eliminated under &#xA7; 8.9A-626 may recover damages for the loss of any
surplus. However, a debtor or secondary obligor whose deficiency is eliminated
or reduced under &#xA7; 8.9A-626 may not otherwise recover under subsection (b)
for noncompliance with the provisions of this part relating to collection,
enforcement, disposition, or acceptance.

e. Limitation of security interest; noncompliance with &#xA7; 8.9A-210. If a
secured party fails to comply with a request regarding a list of collateral or a
statement of account under &#xA7; 8.9A-210, the secured party may claim a
security interest only as shown in the list or statement included in the request
as against a person that is reasonably misled by the failure.

HISTORY: 1964, c. 219, § 8.9-507; 2000, c. 1007.