8.01-480 - Prior security interest on property levied on. - Virginia Statutes

§ 8.01-480. Prior security interest on property levied on.

Tangible personal property subject to a prior security interest, or in whichthe execution debtor has only an equitable interest, may nevertheless belevied on for the satisfaction of a fieri facias. If the prior securityinterest is due and payable, the officer levying the fieri facias may sellthe property free of such security interest, and apply the proceeds first tothe payment of such security interest, and the residue, so far as necessary,to the satisfaction of the fieri facias. In the event the property is to besold free of such prior security interest, the judgment creditor shall givewritten notice by certified mail to each secured party of record as hereafterspecified, as his name and address shall appear on record, of the proposedsale, or to any secured party of whom the judgment creditor shall have actualknowledge. Such notice shall be given to each secured party who is of recordat the State Corporation Commission, at the Department of Motor Vehicles, atthe Department of Game and Inland Fisheries, or in the clerk's office in thecity or county in Virginia, where the debtor has resided to the knowledge ofthe judgment creditor at any time during a one-year period prior to the sale.Certification of such notice shall be delivered to the sheriff or otherofficer conducting the sale pursuant to execution of the judgment, who shallannounce that except as to such person so notified, the sale is subject toany prior security interest of record, other than one of record at a placewhere the debtor may have resided more than one year previously. If suchprior security interest is not due and payable at the time of sale, suchofficer shall sell the property levied on subject to such security interest.

(Code 1950, § 8-413; 1977, c. 617; 1979, c. 491; 1990, c. 553.)