CHAPTER 395

An Act to amend and reenact § 8.9-401 of the Code of Virginia, relating
to place of filing to perfect security interest; erroneous filing; re-
moval of collateral.

(S 383]
Approved April 1, 1966

Be it enacted by the General Assembly of Virginia:

1. That § 8.9-401 of the Code of Virginia be amended and reenacted
as follows:

§ 8.9-401. (1) The proper place to file in order to perfect a security
interest is as follows:

(a) when the collateral is equipment used in farming operations,
or farm products, or accounts, contract rights or general] intangibles
arising from or relating to the sale of farm products by a farmer, or
consumer goods, then in the office of the clerk of the court in which
deeds are admitted to record in the county or city of the debtor’s residence
or if the debtor is not a resident of this State then in the office of such
clerk in the county or city where goods are kept, and in addition when
the collateral is crops in the office of such clerk in the county or city where
the land on which the crops are growing or to be grown is located ;

(b) when the collateral is goods which at the time the security
interest attaches are or are to become fixtures, then in the office where a
mortgage on the real estate concerned would be filed or recorded ;

(c) in all other cases, in the office of the State Corporation Com-
mission and in addition, if the debtor has a place of business in only one
county or city of this State, also in the office of the clerk of the court in
which deeds are admitted to record of such county or city, or, if the
debtor has no place of business in this State, but resides in the State, also
in the office of such clerk of the county or city in which he resides.

(2) A filing which is made in good faith in an improper place or
not in all of the places required by this section is nevertheless effective
with regard to any collateral as to which the filing complied with the
requirements of this title and is also effective with regard to collateral
covered by the financing statement against any person who has knowledge
of the contents of such financing statement.

(3) A filing which is made in the proper place in this State con-
tinues effective even though the debtor’s residence or place of business or
the location of the collateral or its use, whichever controlled the original
filing, is thereafter changed.

(4) If collateral is brought into this State from another jurisdiction,
a Paina stated in § 8.9-108 determine whether filing is necessary in this
(5) For the purpose of determining the place of filing under su
section (1) (a) above, (a) a Virginia corporation shall be deemed |
have tts residence at its registered office, (b) a foreign corporation havir
a registered office in Virginia shall be deemed to have a residence at suc
registered office, and (c) a foreign corporation having no registered o
fice in Virginia shall be deemed a non-resident.