| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
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| LAWDOG™ Virginia Repossession |
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| (Effective January 1, 1999)
The registration card and the certificate of title each contain date issued,
registration number assigned to vehicle, trailer, or semitrailer, name and address of
owner, description of registered vehicle, and other facts as determined by Department.
Every applicant for registration or renewal must indicate on application the color that
best describes the predominant color of vehicle, selected from list of colors, developed
by the Commissioner. See Code of Virginia Section 46.2-604 Registration Card With Transfer Notice The
registration card contains forms for providing notice to the Department of a transfer of
the ownership of vehicle. Whenever a Virginia-registered vehicle is transferred, seller or
transferor must notify Department of transfer by completing appropriate portion of
registration card. See Code of Virginia Section 46.2-604
Form of Certificate The certificate of
title contains statement of owner's title and all liens on vehicle, and whether possession
is held by owner under lease, contract, or conditional sale or other like agreement. The
certificate of title also contains forms for assignment and warranty of title or interest,
with space for notation of liens and encumbrances on vehicle at time of transfer. See Code
of Virginia Section 46.2-604 |
| Security Interests Shown In Order When
Department receives application for certificate of title to a motor vehicle, trailer, or
semitrailer showing security interests on the vehicle, certificate of title issued by
Department to owner of vehicle must show all security interests disclosed by application.
All security interests shown on certificate of title are shown in order of their priority
according to information contained in application. See Code of Virginia Section 46.2-636 |
| Priority of Interests and Certain Garage
and Mechanic Claims The security interests, Except for security
interests in vehicles held as inventory for sale, perfected under Sections 8.9-301 through
8.9-408, security interests shown upon certificates of title issued by the Department
pursuant to applications have priority over any other liens or security interests against
such motor vehicle, trailer, or semitrailer, however created and recorded. These
provisions do not apply to certain liens of keepers of garages and mechanics for repairs,
if requirements therefor exist, provided garage keeper or mechanic furnishes holder of any
recorded lien who may request it with itemized sworn statement of storage charges, work
done, and materials supplied for which lien is claimed. See Code of Virginia Section 46.2-640 |
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| Possession After Default Without Breach of
Peace Unless otherwise agreed, and subject to other laws which may apply,
secured party has, on default, the right to take possession of the collateral. In taking
possession secured party may proceed without judicial process only if this can be done
without breach of the peace. If not, a legal action may proceed. See Code of
Virginia Section 8.9-503 |
| Right To Redeem At any time
before secured party has disposed of collateral or entered into a contract for its
disposition by sale under under Section 8.9-504 or before discharge under Section 8.9-505,
debtor or any other secured party may, unless otherwise agreed in writing after default,
redeem the collateral by tendering fulfillment of all obligations secured by collateral,
expenses reasonably incurred by secured party in retaking, holding and preparing
collateral for sale, arranging for sale, and to extent provided in agreement and not
prohibited by law, reasonable attorneys' fees and legal expenses. See Code of Virginia
Section 8.9-506 |
| Compulsory Sale If the
debtor has paid sixty per cent of the cash price in the case of a purchase money security
interest in consumer goods or sixty per cent of the loan in the case of another security
interest in consumer goods, and has not signed after default a statement renouncing or
modifying his rights under this part a secured party who has taken possession of
collateral must dispose of it under §8.9-504 and if he
fails to do so within ninety days after he takes possession the debtor at his option may
recover in conversion or under §8.9-507 (1) on
secured party's liability. 8.9-505 |
| Acceptance As Satisfaction
In any other case involving consumer goods or any other collateral a secured party in
possession may, after default, propose to retain collateral in satisfaction of the
obligation. Written notice of the proposal must be sent to debtor if he has not signed
after default a statement renouncing or modifying rights. In case of consumer goods no
other notice need be given. In other cases, notice must be sent to any other secured party
from whom secured party has received, before notice to debtor or renunciation of rights,
written notice of claim of interest in the collateral. If secured party receives objection
in writing from a person entitled to receive notice, within twenty-one days after notice
sent, secured party must dispose of collateral by sale under Section 8.9-504. If no such
written objection is received, secured party may retain collateral in satisfaction of the
obligation. 8.9-505 |
| Sale And Application of Proceeds
Secured party after default may sell, lease or otherwise dispose of any or all of
the collateral in its then condition, or following any commercially reasonable preparation
or processing. Any sale of goods is subject to the title on sales (Title 8.2). The
proceeds of disposition are applied in the order following to reasonable expenses of
retaking, holding, preparing for sale or lease, selling, leasing and the like and, to
extent provided for in agreement, and not prohibited by law, reasonable attorneys' fees
and legal expenses incurred. Proceeds are then applied to satisfaction of debt secured by
the security interest under which the sale is made. See Code of Virginia Section 8.9-504 |
| Subordinate Liens If
proceeds remain, they would next apply to the satisfaction of debt secured by any
subordinate security interest in the collateral, if written notice of demand is received
before distribution of proceeds is completed. If requested by secured party, holder of a
subordinate security interest must seasonably furnish reasonable proof of interest, and
unless he does so, secured party need not comply with demand. See Code of Virginia Section
8.9-504 |
| Accounting and Deficiency
If security interest secures debt, secured party must account to debtor for any surplus,
and, unless otherwise agreed, debtor is liable for any deficiency. See Code of Virginia
Section 8.9-504 |
| Public or Private Sale After Notice
Disposition of the collateral may be by public or private proceedings and may be at
any time and place and on any terms, but every aspect of disposition including method,
manner, time, place and terms must be commercially reasonable. Unless collateral is
perishable, reasonable notice of time and place of any public sale, or of the time after
which any private sale is to be made, must be sent by secured party to debtor, if debtor
has not signed, after default, a statement renouncing or modifying right to notice of
sale. In case of consumer goods no other notification need be sent. In other cases notice
must be sent to any other secured party from whom secured party has received, before
sending notice to debtor or before renunciation of rights, written notice of claim of
interest in the collateral. See Code of Virginia Section 8.9-504 |
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| Transfer By Operation of Law
Subject to exceptions listed in Section 46.2-615, in the event of transfer by operation of
law of title or interest of owner in and to a motor vehicle, trailer, or semitrailer
registered to anyone such as surviving joint owner, or by an order in bankruptcy or
insolvency, execution sale, or repossession on default in the terms of a lease or
executory sales contract, or of a written agreement ratified or incorporated in a decree
or order of a court of record, or otherwise than by the voluntary act of the person whose
title or interest is so transferred, the transferee or legal representative must apply to
the Department for a certificate of title. See Code of Virginia Section 46.2-633 |
| Documentation Required
Application must include name and address of person entitled to it, and accompany
application with the registration card and certificate of title previously issued for
vehicle, if available, together with whatever instruments or documents of authority, or
certified copies of them, are required by law to evidence or effect a transfer of title or
interest in or to chattels in the case. The Department may cancel the registration of the
motor vehicle, trailer, or semitrailer and issue a new certificate of title to person
entitled to it. See Code of Virginia Section 46.2-633 |
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