59.1-502.12 - Efficacy and commercial reasonableness of attribution procedure. - Virginia Statutes

§ 59.1-502.12. Efficacy and commercial reasonableness of attributionprocedure.

The efficacy, including the commercial reasonableness, of an attributionprocedure is determined by the court. In making this determination, thefollowing rules apply:

(1) An attribution procedure established by law is effective for transactionswithin the coverage of the statute, administrative rule, or regulation.

(2) Except as otherwise provided in paragraph (1), commercial reasonablenessand effectiveness is determined in light of the purposes of the procedure andthe commercial circumstances at the time the parties agreed to or adopted theprocedure.

(3) An attribution procedure may use any security device or method that iscommercially reasonable under the circumstances.

(2000, cc. 101, 996; 2001, cc. 762, 763.)