8.2A-308 - A-308. Special rights of creditors. - Virginia Statutes

§ 8.2A-308. Special rights of creditors.

(1) A creditor of a lessor in possession of goods subject to a lease contractmay treat the lease contract as void if as against the creditor retention ofpossession by the lessor is fraudulent under any statute or rule of law, butretention of possession in good faith and current course of trade by thelessor for a commercially reasonable time after the lease contract becomesenforceable is not fraudulent.

(2) Nothing in this title impairs the rights of creditors of a lessor if thelease contract (a) becomes enforceable, not in current course of trade but insatisfaction of or as security for a pre-existing claim for money, security,or the like, and (b) is made under circumstances which under any statute orrule of law apart from this title would constitute the transaction afraudulent transfer or voidable preference.

(3) A creditor of a seller may treat a sale or an identification of goods toa contract for sale as void if as against the creditor retention ofpossession by the seller is fraudulent under any statute or rule of law, butretention of possession of the goods pursuant to a lease contract enteredinto by the seller as lessee and the buyer as lessor in connection with thesale or identification of the goods is not fraudulent if the buyer bought forvalue and in good faith.

(1991, c. 536.)