8.9A-604 - A-604. Procedure if security agreement covers real property or fixtures. - Virginia Statutes

§ 8.9A-604. Procedure if security agreement covers real property or fixtures.

(a) Enforcement; personal and real property. If a security agreement coversboth personal and real property, a secured party may proceed:

(1) under this part as to the personal property without prejudicing anyrights with respect to the real property; or

(2) as to both the personal property and the real property in accordance withthe rights with respect to the real property, in which case the otherprovisions of this part do not apply.

(b) Enforcement; fixtures. Subject to subsection (c), if a security agreementcovers goods that are or become fixtures, a secured party may proceed:

(1) under this part; or

(2) in accordance with the rights with respect to real property, in whichcase the other provisions of this part do not apply.

(c) Removal of fixtures. Subject to the other provisions of this part, if asecured party holding a security interest in fixtures has priority over allowners and encumbrancers of the real property, the secured party, afterdefault, may remove the collateral from the real property.

(d) Injury caused by removal. A secured party that removes collateral shallpromptly reimburse any encumbrancer or owner of the real property, other thanthe debtor, for the cost of repair of any physical injury caused by theremoval. The secured party need not reimburse the encumbrancer or owner forany diminution in value of the real property caused by the absence of thegoods removed or by any necessity of replacing them. A person entitled toreimbursement may refuse permission to remove until the secured party givesadequate assurance for the performance of the obligation to reimburse.

(1964, c. 219, §§ 8.9-313, 8.9-501; 1973, c. 509; 1983, c. 204; 2000, c.1007.)