8.9A-109 - A-109. Scope.

§ 8.9A-109. Scope.

(a) General scope of title. Except as otherwise provided in subsections (c)and (d), this title applies to:

(1) a transaction, regardless of its form, that creates a security interestin personal property or fixtures by contract;

(2) an agricultural lien;

(3) a sale of accounts, chattel paper, payment intangibles, or promissorynotes;

(4) a consignment;

(5) a security interest arising under §§ 8.2-401, 8.2-505, 8.2-711 (3), or §8.2A-508 (5), as provided in § 8.9A-110; and

(6) a security interest arising under § 8.4-210 or § 8.5A-118.

(b) Security interest in secured obligation. The application of this title toa security interest in a secured obligation is not affected by the fact thatthe obligation is itself secured by a transaction or interest to which thistitle does not apply.

(c) Extent to which title does not apply. This title does not apply to theextent that:

(1) a statute, regulation, or treaty of the United States preempts this title;

(2) another statute of this Commonwealth expressly governs the creation,perfection, priority, or enforcement of a security interest created by thisCommonwealth or a governmental unit of this Commonwealth;

(3) a statute of another state, a foreign country, or a governmental unit ofanother state or a foreign country, other than a statute generally applicableto security interests, expressly governs creation, perfection, priority, orenforcement of a security interest created by the state, country, orgovernmental unit; or

(4) the rights of a transferee beneficiary or nominated person under a letterof credit are independent and superior under § 8.5A-114.

(d) Inapplicability of title. This title does not apply to:

(1) a landlord's lien, other than an agricultural lien;

(2) a lien, other than an agricultural lien, given by statute or other ruleof law for services or materials, but § 8.9A-333 applies with respect topriority of the lien;

(3) an assignment of a claim for wages, salary, or other compensation of anemployee;

(4) a sale of accounts, chattel paper, payment intangibles, or promissorynotes as part of a sale of the business out of which they arose;

(5) an assignment of accounts, chattel paper, payment intangibles, orpromissory notes which is for the purpose of collection only;

(6) an assignment of a right to payment under a contract to an assignee thatis also obligated to perform under the contract;

(7) an assignment of a single account, payment intangible, or promissory noteto an assignee in full or partial satisfaction of a preexisting indebtedness;

(8) a transfer of an interest in or an assignment of a claim under a policyof insurance or contract for an annuity including a variable, other than anassignment by or to a health-care provider of a health-care-insurancereceivable and any subsequent assignment of the right to payment, but §§8.9A-315 and 8.9A-322 apply with respect to proceeds and priorities inproceeds;

(9) an assignment of a right represented by a judgment, other than a judgmenttaken on a right to payment that was collateral;

(10) a right of recoupment or set-off, but:

(A) § 8.9A-340 applies with respect to the effectiveness of rights ofrecoupment or set-off against deposit accounts; and

(B) § 8.9A-404 applies with respect to defenses or claims of an accountdebtor;

(11) the creation or transfer of an interest in or lien on real property,including a lease or rents thereunder, except to the extent that provision ismade for:

(A) liens on real property in §§ 8.9A-203 and 8.9A-308;

(B) fixtures in § 8.9A-334;

(C) fixture filings in §§ 8.9A-501, 8.9A-502, 8.9A-512, 8.9A-516, and8.9A-519; and

(D) security agreements covering personal and real property in § 8.9A-604;

(12) an assignment of a claim arising in tort, other than a commercial tortclaim, but §§ 8.9A-315 and 8.9A-322 apply with respect to proceeds andpriorities in proceeds;

(13) an assignment of a deposit account in a consumer transaction, but §§8.9A-315 and 8.9A-322 apply with respect to proceeds and priorities inproceeds;

(14) a sale of promissory notes by the Commonwealth or a governmental unit ofthe Commonwealth in connection with or in furtherance of the exercise of theborrowing power of the Commonwealth or a governmental unit of theCommonwealth.

(e) Except as provided below, the creation, perfection, priority andenforcement of a security interest, lien or pledge created, made or grantedby the Commonwealth or a governmental unit of the Commonwealth to pay orsecure any bonds, notes, obligations or other debt securities issued therebyshall be governed by § 2.2-4902.1 and this title shall not apply to such asecurity interest, lien or pledge. Security interests, liens or pledgescreated by the Commonwealth or a governmental unit of this Commonwealth ingoods or software, or the proceeds thereof, shall be governed by this title.

(1964, c. 219, §§ 8.9-102, 8.9-104; 1973, c. 509; 1974, c. 190; 1997, c. 343;2000, c. 1007; 2001, cc. 289, 296.)