Virginia Law

2022 Amendments – Effective Date and Transition Provisions

This article may be cited as Transitional Provisions for Uniform Commercial Code Amendments (2022).

2024, c. 652.

(a) Article A Definitions. In this article:

(1) "Act" means the Uniform Commercial Code Amendments (2022).

(2) "Adjustment date" means the date that is one year after the effective date of this act.

(3) "Title 8.12" means Title 8.12 of the Uniform Commercial Code (§§ 8.12-101 et seq.).

(4) "Title 8.12 property" means a controllable account, controllable electronic record, or controllable payment intangible.

(5) "Effective date of this act" means July 1, 2025.

(b) Definitions in other articles. The following definitions in other articles of the Uniform Commercial Code apply to this article.

"Controllable account".§ 8.9A-102.

"Controllable electronic record".§ 8.12-102.

"Controllable payment intangible".§ 8.9A-102.

"Electronic money".§ 8.9A-102.

"Financing statement".§ 8.9A-102.

(c) Title 8.1A definitions and principles. Title 8.1A contains general definitions and principles of construction and interpretation applicable throughout this article.

2024, c. 652.

Except as provided in Part 3, a transaction validly entered into before the effective date of this act and the rights, duties, and interests flowing from the transaction remain valid thereafter and may be terminated, completed, consummated, or enforced as required or permitted by law other than the Uniform Commercial Code or, if applicable, the Uniform Commercial Code, as though this act had not taken effect.

2024, c. 652.

(a) Pre-effective-date transaction, lien, or interest. Except as provided in this part, Title 8.9A as amended by this act and Title 8.12 apply to a transaction, lien, or other interest in property, even if the transaction, lien, or interest was entered into, created, or acquired before the effective date of this act.

(b) Continuing validity. Except as provided in subsection (c) and §§ 8.13-302 through 8.13-306:

(1) a transaction, lien, or interest in property that was validly entered into, created, or transferred before the effective date of this act and was not governed by the Uniform Commercial Code, but would be subject to Title 8.9A as amended by this act or Title 8.12 if it had been entered into, created, or transferred on or after the effective date of this act, including the rights, duties, and interests flowing from the transaction, lien, or interest, remains valid on and after the effective date of this act; and

(2) the transaction, lien, or interest may be terminated, completed, consummated, and enforced as required or permitted by this act or by the law that would apply if this act had not taken effect.

(c) Pre-effective-date proceeding. This act does not affect an action, case, or proceeding commenced before the effective date of this act.

2024, c. 652.

(a) Continuing perfection: perfection requirements satisfied. A security interest that is enforceable and perfected immediately before the effective date of this act is a perfected security interest under this act if, on the effective date of this act, the requirements for enforceability and perfection under this act are satisfied without further action.

(b) Continuing perfection: enforceability or perfection requirements not satisfied. If a security interest is enforceable and perfected immediately before the effective date of this act, but the requirements for enforceability or perfection under this act are not satisfied on the effective date of this act, the security interest:

(1) is a perfected security interest until the earlier of the time perfection would have ceased under the law in effect immediately before the effective date of this act or the adjustment date;

(2) remains enforceable thereafter only if the security interest satisfies the requirements for enforceability under § 8.9A-203, as amended by this act, before the adjustment date; and

(3) remains perfected thereafter only if the requirements for perfection under this act are satisfied before the time specified in paragraph (1).

2024, c. 652.

A security interest that is enforceable immediately before the effective date of this act but is unperfected at that time:

(1) remains an enforceable security interest until the adjustment date;

(2) remains enforceable thereafter if the security interest becomes enforceable under § 8.9A-203, as amended by this act, on the effective date of this act or before the adjustment date; and

(3) becomes perfected:

(A) without further action, on the effective date of this act if the requirements for perfection under this act are satisfied before or at that time; or

(B) when the requirements for perfection are satisfied if the requirements are satisfied after that time.

2024, c. 652.

(a) Pre-effective-date action; attachment and perfection before adjustment date. If action, other than the filing of a financing statement, is taken before the effective date of this act and the action would have resulted in perfection of the security interest had the security interest become enforceable before the effective date of this act, the action is effective to perfect a security interest that attaches under this act before the adjustment date. An attached security interest becomes unperfected on the adjustment date unless the security interest becomes a perfected security interest under this act before the adjustment date.

(b) Pre-effective-date filing. The filing of a financing statement before the effective date of this act is effective to perfect a security interest on the effective date of this act to the extent the filing would satisfy the requirements for perfection under this act.

(c) Pre-effective-date enforceability action. The taking of an action before the effective date of this act is sufficient for the enforceability of a security interest on the effective date of this act if the action would satisfy the requirements for enforceability under this act.

2024, c. 652.

(a) Determination of priority. Subject to subsections (b) and (c), this act determines the priority of conflicting claims to collateral.

(b) Established priorities. Subject to subsection (c), if the priorities of claims to collateral were established before the effective date of this act, Title 8.9A as in effect before the effective date of this act determines priority.

(c) Determination of certain priorities on adjustment date. On the adjustment date, to the extent the priorities determined by Title 8.9A as amended by this act modify the priorities established before the effective date of this act, the priorities of claims to Title 8.12 property and electronic money established before the effective date of this act cease to apply.

2024, c. 652.

(a) Determination of priority. Subject to subsections (b) and (c), Title 8.12 determines the priority of conflicting claims to Title 8.12 property when the priority rules of Title 8.9A as amended by this act do not apply.

(b) Established priorities. Subject to subsection (c), when the priority rules of Article 9 as amended by this act do not apply and the priorities of claims to Title 8.12 property were established before the effective date of this act, law other than Title 8.12 determines priority.

(c) Determination of certain priorities on adjustment date. When the priority rules of Article 9 as amended by this act do not apply, to the extent the priorities determined by this act modify the priorities established before the effective date of this act, the priorities of claims to Title 8.12 property established before the effective date of this act cease to apply on the adjustment date.

2024, c. 652.

This act shall take effect on July 1, 2025.

2024, c. 652.