CHAPTER 602

An Act to amend and reenact §§ 55-144, 55-146 and 55-148 of the Code
of Virginia, relating to factors’ liens and notice thereof. CH 428)

Approved March 31, 1956

Be it enacted by the General Assembly of Virginia:

1. That §§ 55-144, 55-146 and 55-148 of the Code of Virginia be amended
and reenacted as follows:

§ 55-144. If so provided by any written agreement, all factors shall
have a continuing general lien upon all goods and merchandise from time
to time consigned to or pledged with them, whether in their constructive,
actual or exclusive occupancy or possession or not, for all their loans and
advances to or for the account of the person creating the lien (hereinafter
called the borrower), together with interest thereon, and also for the
commission, charges and expenses properly chargeable against or due
from the borrower and for the amount due upon any notes or other obli-
gations given to or received by them for or upon account of any such
loans or advances, interest, commissions, charges and expenses and such
lien shall be valid from the time of recording the notice hereinafter
referred to, whether such goods or merchandise shall be in existence at
the time of the agreement creating the lien or at the time of rename iag
such notice or shall come into existence subsequently thereto or shal
subsequently thereto be acquired by the borrower; provided that * a
notice of the lien is recorded as hereinafter provided stating:
a. The name of the factor, the name under which the factor does
business, if an assumed name; the principal place of business of the factor
within the State, or if he has no place of business within the State, his
principal place of business outside of this State; and if the factor is a
partnership or association, the names of the partners, and if a corpora-
tion, the state under whose laws it was organized and the location of its
principal office ; .

b. The name of the borrower and the interest of such person in the
merchandise, as far as known to the factor; and .

ce. The general character of the goods or merchandise subject to the
lien, or which may become subject thereto, and the period of time during
which such loans or advances may be made under the terms of the agree-
ment providing for such loans or advances and for such lien. Amendments
of the notice may be filed from time to time to record any changes in the
information contained in the original or prior notices. .

§ 55-146. Such notice may be recorded at any time after the making
of the agreement and shall be effectual from the time such notice is
admitted to record as against all claims of creditors in or against such
goods or merchandise thereafter arising, except any common-law or statu-
tory liens of processors, mechanics, artisans or others subsequently attach-
ing to such goods or merchandise by reason of work or services rendered
thereon, and also except any common-law or statutory liens in favor of
any. third party upon or in such goods or merchandise which were duly
recorded or were otherwise valid against the factor and in existence at
the time of the recording of the notice. The lien of a landlord for rent
shall be superior to the lien of a factor created by this chapter. Pur-
chasers for value from the borrower in the usual course of business shall
take free of the lien created by this chapter whether they know of the
lien or not. When goods or merchandise subject to the lien provided for
by this chapter are sold in the ordinary course of the business of the
borrower, such lien shall attach without further act, writing or formality
to the accounts receivable or proceeds of such sale in the hands of the
borrower.

§ 55-148. When any factor, or any third party for the account of
any such factor, shall have possession of goods or merchandise such factor
by virtue of such possession shall have a continuing general lien, as set
doth in § 55-144, without recording the notice * provided for in this

apter.