{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/6.2-2234.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/6.2-2234.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/6.2-2234.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/6.2-2234.html"}],"law_id":374147,"edition_id":2,"section_id":374147,"structure_id":53202,"section_number":"6.2-2234","catch_line":"Place for bringing action under a contract or agreement to provide sales-based financing; certain fees paid by provider; confessions of judgment prohibited","history":"2022, c. 516.","full_text":"A\n\nWhere a provider enters into a contract or agreement with a recipient to provide sales-based financing, any cause of action arising under such contract or agreement shall be brought in a court in the Commonwealth. Any provision in the contract or agreement mandating that such action be brought outside the Commonwealth shall be unenforceable.\n\nB\n\nWhere a contract between a provider or broker and recipient contains an arbitration provision, such contract shall not require face-to-face arbitration proceedings outside the jurisdiction where the recipient’s principal place of business is located. If the contract requires face-to-face arbitration proceedings outside such jurisdiction, such provision is unenforceable. The enforceability of the remaining provisions of the arbitration agreement and the method of selecting a forum for the conduct of the arbitration proceedings are as provided in this Code, the United States Arbitration Act (P.L. 68-401), and any applicable rules of arbitration. The provider shall pay any arbitrators’ expenses or fees or any other expenses or administrative fees incurred in the conduct of the arbitration proceedings.\n\nC\n\nNo sales-based financing contract shall contain any confession by judgment provision or any similar provision. Any such provision in the contract shall be unenforceable.\n\n","order_by":null,"text":{"0":{"id":1396729,"text":"Where a provider enters into a contract or agreement with a recipient to provide sales-based financing, any cause of action arising under such contract or agreement shall be brought in a court in the Commonwealth. Any provision in the contract or agreement mandating that such action be brought outside the Commonwealth shall be unenforceable.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":1396730,"text":"Where a contract between a provider or broker and recipient contains an arbitration provision, such contract shall not require face-to-face arbitration proceedings outside the jurisdiction where the recipient’s principal place of business is located. If the contract requires face-to-face arbitration proceedings outside such jurisdiction, such provision is unenforceable. The enforceability of the remaining provisions of the arbitration agreement and the method of selecting a forum for the conduct of the arbitration proceedings are as provided in this Code, the United States Arbitration Act (P.L. 68-401), and any applicable rules of arbitration. The provider shall pay any arbitrators’ expenses or fees or any other expenses or administrative fees incurred in the conduct of the arbitration proceedings.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":1396731,"text":"No sales-based financing contract shall contain any confession by judgment provision or any similar provision. Any such provision in the contract shall be unenforceable.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":53202,"edition_id":2,"name":"Sales-Based Financing Providers","identifier":"22.1","label":"chapter","depth":3,"order_by":10,"parent_id":53187,"metadata":{"child_laws":11,"child_structures":0},"date_created":"2026-08-02 03:12:57","date_modified":"2026-08-02 12:28:09","permalink":{"id":1494031,"object_type":"structure","relational_id":53202,"identifier":"22.1","token":"6.2\/III\/22.1","url":"\/6.2\/III\/22.1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53187,"edition_id":2,"name":"Other Regulated Providers of Financial Services","identifier":"III","label":"subtitle","depth":2,"order_by":3,"parent_id":53152,"metadata":{"child_laws":332,"child_structures":12},"date_created":"2026-08-02 03:12:17","date_modified":"2026-08-02 12:28:07","permalink":{"id":1492723,"object_type":"structure","relational_id":53187,"identifier":"III","token":"6.2\/III","url":"\/6.2\/III\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53152,"edition_id":2,"name":"Financial Institutions and Services","identifier":"6.2","label":"title","depth":1,"order_by":10,"parent_id":null,"metadata":{"child_laws":961,"child_structures":89},"date_created":"2026-08-02 03:11:41","date_modified":"2026-08-02 12:27:53","permalink":{"id":1490251,"object_type":"structure","relational_id":53152,"identifier":"6.2","token":"6.2","url":"\/6.2\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":374141,"structure_id":53202,"section_number":"6.2-2228","catch_line":"Definitions","url":"\/6.2-2228\/","token":"6.2\/III\/22.1\/6.2-2228","metadata":false},{"id":374142,"structure_id":53202,"section_number":"6.2-2229","catch_line":"Exemptions","url":"\/6.2-2229\/","token":"6.2\/III\/22.1\/6.2-2229","metadata":false},{"id":374143,"structure_id":53202,"section_number":"6.2-2230","catch_line":"Registration; authority to transact business","url":"\/6.2-2230\/","token":"6.2\/III\/22.1\/6.2-2230","metadata":false},{"id":374144,"structure_id":53202,"section_number":"6.2-2231","catch_line":"Disclosure requirements","url":"\/6.2-2231\/","token":"6.2\/III\/22.1\/6.2-2231","metadata":false},{"id":374145,"structure_id":53202,"section_number":"6.2-2232","catch_line":"Recipient place of business; required signature","url":"\/6.2-2232\/","token":"6.2\/III\/22.1\/6.2-2232","metadata":false},{"id":374146,"structure_id":53202,"section_number":"6.2-2233","catch_line":"Additional information","url":"\/6.2-2233\/","token":"6.2\/III\/22.1\/6.2-2233","metadata":false},{"id":374147,"structure_id":53202,"section_number":"6.2-2234","catch_line":"Place for bringing action under a contract or agreement to provide sales-based financing; certain fees paid by provider; confessions of judgment prohibited","url":"\/6.2-2234\/","token":"6.2\/III\/22.1\/6.2-2234","metadata":false},{"id":374148,"structure_id":53202,"section_number":"6.2-2235","catch_line":"Applicability of chapter to internet transactions","url":"\/6.2-2235\/","token":"6.2\/III\/22.1\/6.2-2235","metadata":false},{"id":374149,"structure_id":53202,"section_number":"6.2-2236","catch_line":"Validity of noncompliant sales-based financing","url":"\/6.2-2236\/","token":"6.2\/III\/22.1\/6.2-2236","metadata":false},{"id":374150,"structure_id":53202,"section_number":"6.2-2237","catch_line":"Regulations","url":"\/6.2-2237\/","token":"6.2\/III\/22.1\/6.2-2237","metadata":false},{"id":374151,"structure_id":53202,"section_number":"6.2-2238","catch_line":"Authority of Attorney General","url":"\/6.2-2238\/","token":"6.2\/III\/22.1\/6.2-2238","metadata":false}],"previous_section":{"id":374146,"structure_id":53202,"section_number":"6.2-2233","catch_line":"Additional information","url":"\/6.2-2233\/","token":"6.2\/III\/22.1\/6.2-2233","metadata":false},"next_section":{"id":374148,"structure_id":53202,"section_number":"6.2-2235","catch_line":"Applicability of chapter to internet transactions","url":"\/6.2-2235\/","token":"6.2\/III\/22.1\/6.2-2235","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/6.2-2234\/","history_text":"

This law was first created in 2022. The record of its establishment is cataloged in chapter 516<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year.<\/p>","references":false,"refers_to":false,"permalink":{"id":1494057,"object_type":"law","relational_id":374147,"identifier":"6.2-2234","token":"6.2\/III\/22.1\/6.2-2234","url":"\/6.2-2234\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/6.2-2234\/","token":"6.2\/III\/22.1\/6.2-2234","dublin_core":{"Title":"Place for bringing action under a contract or agreement to provide sales-based financing; certain fees paid by provider; confessions of judgment prohibited","Type":"Text","Format":"text\/html","Identifier":"\u00a7 6.2-2234","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Where a provider<\/span> enters into a contract<\/span> or agreement with a recipient<\/span> to provide sales-based financing<\/span>, any cause of action<\/span> arising under such contract<\/span> or agreement shall be brought in a court<\/span> in the Commonwealth. Any provision in the contract<\/span> or agreement mandating that such action be brought outside the Commonwealth shall be unenforceable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Where a contract<\/span> between a provider<\/span> or broker<\/span> and recipient<\/span> contains an arbitration provision, such contract<\/span> shall not require face-to-face arbitration proceedings outside the jurisdiction<\/span> where the recipient<\/span>’s principal place of business is located. If the contract<\/span> requires face-to-face arbitration proceedings outside such jurisdiction<\/span>, such provision is unenforceable. The enforceability of the remaining provisions of the arbitration agreement and the method of selecting a forum for the conduct of the arbitration proceedings are as provided in this Code, the United States Arbitration Act (P.L. 68-401), and any applicable rules of arbitration. The provider<\/span> shall pay any arbitrators’ expenses or fees or any other expenses or administrative fees incurred in the conduct of the arbitration proceedings. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> No sales-based financing<\/span> contract<\/span> shall contain any confession<\/span> by judgment<\/span> provision or any similar provision. Any such provision in the contract<\/span> shall be unenforceable. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPLACE FOR BRINGING ACTION UNDER A CONTRACT OR AGREEMENT TO PROVIDE SALES-BASED\nFINANCING; CERTAIN FEES PAID BY PROVIDER; CONFESSIONS OF JUDGMENT PROHIBITED (\u00a7\n6.2-2234)\n\nA. Where a provider enters into a contract or agreement with a recipient to\nprovide sales-based financing, any cause of action arising under such contract\nor agreement shall be brought in a court in the Commonwealth. Any provision in\nthe contract or agreement mandating that such action be brought outside the\nCommonwealth shall be unenforceable.\n\nB. Where a contract between a provider or broker and recipient contains an\narbitration provision, such contract shall not require face-to-face arbitration\nproceedings outside the jurisdiction where the recipient’s principal place\nof business is located. If the contract requires face-to-face arbitration\nproceedings outside such jurisdiction, such provision is unenforceable. The\nenforceability of the remaining provisions of the arbitration agreement and the\nmethod of selecting a forum for the conduct of the arbitration proceedings are\nas provided in this Code, the United States Arbitration Act (P.L. 68-401), and\nany applicable rules of arbitration. The provider shall pay any\narbitrators’ expenses or fees or any other expenses or administrative fees\nincurred in the conduct of the arbitration proceedings.\n\nC. No sales-based financing contract shall contain any confession by judgment\nprovision or any similar provision. Any such provision in the contract shall be\nunenforceable.\n\nHISTORY: 2022, c. 516.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}