2.2-4902.1 - Pledges and security interests created by governmental units. - Virginia Statutes

§ 2.2-4902.1. Pledges and security interests created by governmental units.

Except for security interests, liens or pledges in goods or software, or theproceeds thereof, described in § 8.9A-109(e), the creation, perfection,priority and enforcement of a security interest, lien or pledge created, madeor granted by the Commonwealth or a governmental unit of the Commonwealth, asdefined in § 8.9A-102, to pay or secure any bonds, notes, obligations orother debt securities, herein collectively called "bonds," shall begoverned by this section, the provisions of law under which the bonds wereauthorized, and the ordinance, resolution, trust agreement, indenture,financing agreement or similar instrument securing the bonds, herein calledthe "security interest." Property pledged or in which a security interestis created for the payment or security of any bonds, whether presently heldby the governmental unit or as thereafter received by or otherwise creditedto the governmental unit, shall immediately be subject to the lien of suchpledge or security interest without any physical delivery, control, filing orfurther act. The lien of such pledge or security interest made or granted inthe security instrument shall have priority over any other obligations orliabilities of the governmental unit, except as may be otherwise provided inthe security instrument. The lien of each such pledge or security interestshall be valid, binding and enforceable as against all persons having claimsof any kind in tort, contract, or otherwise against the governmental unitregardless of whether such persons have notice of such pledge or securityinterest.

(2001, cc. 289, 296, § 2.1-304.1:2.)