8.9A-703 - A-703. Security interest perfected before effective date. - Virginia Statutes

§ 8.9A-703. Security interest perfected before effective date.

(a) Continuing priority over lien creditor; perfection requirementssatisfied. A security interest that is enforceable immediately before thistitle takes effect and would have priority over the rights of a person thatbecomes a lien creditor at that time is a perfected security interest underthis title if, when this takes effect, the applicable requirements forenforceability and perfection under this title are satisfied without furtheraction.

(b) Continuing priority over lien creditor; perfection requirements notsatisfied. Except as otherwise provided in § 8.9A-705, if, immediately beforethis title takes effect, a security interest is enforceable and would havepriority over the rights of a person that becomes a lien creditor at thattime, but the applicable requirements for enforceability or perfection underthis title are not satisfied when this takes effect, the security interest:

(1) is a perfected security interest for one year after this takes effect;

(2) remains enforceable thereafter only if the security interest becomesenforceable under § 8.9A-203 before the year expires; and

(3) remains perfected thereafter only if the applicable requirements forperfection under this title are satisfied before the year expires.

(c) Notwithstanding subsections (a) and (b) of this section, a lien, pledgeor security interest granted by the Commonwealth or a governmental unit ofthe Commonwealth prior to July 1, 2001, which is enforceable immediatelybefore July 1, 2001, and would have priority over the rights of a person thatbecomes a lien creditor at that time, shall remain enforceable and continueto have such priority on or after July 1, 2001.

(2000, c. 1007; 2001, cc. 289, 296.)