6.2-2217 - (Effective October 1, 2010) Limited recourse; repossession and sale of motor vehicle.
§ 6.2-2217. (Effective October 1, 2010) Limited recourse; repossession andsale of motor vehicle.
A. Except as otherwise provided in subsection E, a licensee taking a securityinterest in a motor vehicle pursuant to this chapter shall be limited, upondefault by the borrower, to seeking repossession of, preparing for sale, andselling the motor vehicle in accordance with Title 8.9A. Unless (i) thelicensee, at least 10 days prior to repossessing the motor vehicle securing atitle loan, has sent to the borrower, by first class mail, written noticeadvising the borrower that his title loan is in default and stating that themotor vehicle may be repossessed unless the principal and interest owed underthe loan agreement are paid and (ii) the borrower does not pay such principaland interest prior to the date the motor vehicle is repossessed by or at thedirection of the licensee, then the licensee shall not collect or charge thecosts of repossessing and selling the motor vehicle described in clause (ii)of subsection D of § 6.2-2216. A licensee shall not repossess a motor vehiclesecuring a title loan prior to the date specified in the notice. Except asotherwise provided in subsection E, a licensee shall not seek or obtain apersonal money judgment against a borrower for any amount owed under a loanagreement or any deficiency resulting after the sale of a motor vehicle.
B. At least 15 days prior to the sale of a motor vehicle, a licensee shall(i) notify the borrower of the date and time after which the motor vehicle issubject to sale and (ii) provide the borrower with a written accounting ofthe principal amount due to the licensee, interest accrued through the datethe licensee took possession of the motor vehicle, and any reasonableexpenses incurred to date by the licensee in taking possession of, preparingfor sale, and selling the motor vehicle. At any time prior to such sale, thelicensee shall permit the borrower to redeem the motor vehicle by tenderingcash or other good funds instrument for the principal amount due to thelicensee, interest accrued through the date the licensee took possession, andany reasonable expenses incurred by the licensee in taking possession of,preparing for sale, and selling the motor vehicle.
C. Within 30 days of the licensee's receipt of funds from the sale of a motorvehicle, the borrower is entitled to receive all proceeds from such sale ofthe motor vehicle in excess of the principal amount due to the licensee,interest accrued through the date the licensee took possession, and thereasonable expenses incurred by the licensee in taking possession of,preparing for sale, and selling the motor vehicle.
D. Except in the case of fraud or a voluntary surrender of the motor vehicle,a licensee shall not take possession of a motor vehicle until such time as aborrower is in default under the loan agreement. Except as otherwise providedin this chapter, the repossession and sale of a motor vehicle shall besubject to the provisions of Title 8.9A.
E. Notwithstanding any provision to the contrary, upon default by a borrower,a licensee may seek a personal money judgment against the borrower for anyamounts owed under a loan agreement if the borrower impairs the licensee'ssecurity interest by (i) intentionally damaging or destroying the motorvehicle, (ii) intentionally concealing the motor vehicle, (iii) giving thelicensee a lien in a motor vehicle that is already encumbered by anundisclosed prior lien, or (iv) subsequently giving a security interest in,or selling, a motor vehicle that secures a title loan to a third party,without the licensee's written consent.
(2010, c. 477.)