Va. Code § 8.4-101
Short title
This title may be cited as Uniform Commercial Code -- Bank Deposits and Collections.
Code of Virginia Title 8.4 — Commercial Code — Bank Deposits and Collections
Virginia · statute · Va. Code tit. 8.4 · 41 active provisions
Va. Code § 8.4-102
Applicability
(a) To the extent that items within this title are also within the scope of Titles 8.3A and 8.8A, they are subject to those titles. If there is conflict this title governs Title 8.3A but Title 8.8A governs this title. (b) The liability of a bank for action or nonaction with respect to an item handled by it for purposes…
Va. Code § 8.4-103
Variation by agreement; measure of damages; action constituting ordinary care
(a) The effect of the provisions of this title may be varied by agreement but the parties to the agreement cannot disclaim a bank's responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages for the lack or failure. However, the parties may determine by agreement the…
Va. Code § 8.4-104
Definitions and index of definitions
(a) In this title, unless the context otherwise requires: (1) "Account" means any deposit or credit account with a bank including demand, time savings passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (2) "Afternoon" means the period of a day between noon and midnight;…
Va. Code § 8.4-105
"Bank"; "depositary bank"; "intermediary bank"; "collecting bank"; "payor bank"; "presenting bank."
In this title: (1) "Bank" means a person engaged in the business of banking, including a savings institution, credit union or trust company; (2) "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter; (3) "Payor b…
Va. Code § 8.4-105.1
Payable through or payable at bank; collecting bank
(a) If an item states that it is "payable through" a bank identified in the item, (i) the item designates the bank as a collecting bank and does not by itself authorize the bank to pay the item, and (ii) the item may be presented for payment only by or through the bank. (b) If an item states that it is "payable at" a b…
Va. Code § 8.4-106
Separate office of a bank
A branch or separate office of a bank is a separate bank for the purpose of computing the time within which and determining the place at or to which action may be taken or notices or orders must be given under this title and under Title 8.3A.
Va. Code § 8.4-107
Time of receipt of items
(a) For the purpose of allowing time to process items, prove balances and make the necessary entries on its books to determine its position for the day, a bank may fix an afternoon hour of 2 p.m. or later as a cutoff hour for the handling of money and items and the making of entries on its books. (b) An item or deposit…
Va. Code § 8.4-108
Delays
(a) Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may, waive, modify or extend time limits imposed or permitted by this title for a period not exceeding two additiona…
Va. Code § 8.4-110
Electronic presentment
(a) "Agreement for electronic presentment" means an agreement, clearing-house rule, or Federal Reserve regulation or operating circular, providing that presentment of an item may be made by transmission of an image of an item or information describing the item ("presentment notice") rather than delivery of the item its…
Va. Code § 8.4-111
Statute of limitations
An action to enforce an obligation, duty, or right arising under this title must be commenced within three years after the cause of action accrues.
Va. Code § 8.4-201
Status of collecting bank as agent and provisional status of credits; applicability of title; item endorsed "pay any bank."
(a) Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. This provision applies regardless of t…
Va. Code § 8.4-202
Responsibility for collection or return; when action timely
(a) A collecting bank must exercise ordinary care in: (1) presenting an item or sending it for presentment; (2) sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be; (3) settli…
Va. Code § 8.4-203
Effect of instructions
Subject to Title 8.3A concerning conversion of instruments (§ 8.3A-420 ) and restrictive endorsements (§ 8.3A-206 ), only a collecting bank's transferor can give instructions that affect the bank or constitute notice to it, and a collecting bank is not liable to prior parties for any action taken pursuant to the instru…
Va. Code § 8.4-204
Methods of sending and presenting; sending directly to payor bank
(a) A collecting bank shall send items by a reasonably prompt method, taking into consideration relevant instructions, the nature of the item, the number of those items on hand, the cost of collection involved and the method generally used by it or others to present those items. (b) A collecting bank may send: (1) an i…
Va. Code § 8.4-205.1
Depositary bank holder of unendorsed item
If a customer delivers an item to a depositary bank for collection: (1) the depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of the delivery was a holder of the item, whether or not the customer endorses the item, and, if the bank satisfies the oth…
Va. Code § 8.4-206
Transfer between banks
Any agreed method that identifies the transferor bank is sufficient for the item's further transfer to another bank.
Va. Code § 8.4-207.1
Transfer warranties
(a) A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that: (1) the warrantor is a person entitled to enforce the item; (2) all signatures on the item are authentic and authorized; (3) the item has not b…
Va. Code § 8.4-207.2
Presentment warranties
(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of transfer, warrant to the drawee that pays or accepts the draft…
Va. Code § 8.4-207.3
Encoding and retention warranties
(a) A person who encodes information on or with respect to an item after issue warrants to any subsequent collecting bank and to the payor bank or other payor that the information is correctly encoded. If the customer of a depositary bank encodes, that bank also makes the warranty. (b) A person who undertakes to retain…
Va. Code § 8.4-208
Security interest of collecting bank in items, accompanying documents and proceeds
(a) A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: (1) in case of an item deposited in an account to the extent to which credit given for the item has been withdrawn or applied; (2) in case of an item for which it has given credit available for withdrawal…
Va. Code § 8.4-209
When bank gives value for purposes of holder in due course
For purposes of determining its status as a holder in due course, a bank has given value to the extent it has a security interest in an item, if the bank otherwise complies with the requirements of § 8.3A-302 on what constitutes a holder in due course.
Va. Code § 8.4-210
Presentment by notice of item not payable by, through or at a bank; liability of drawer or endorser
(a) Unless otherwise instructed, a collecting bank may present an item not payable by, through or at a bank by sending to the party to accept or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and th…
Va. Code § 8.4-211.1
Medium and time of settlement by bank
(a) With respect to settlement by a bank, the medium and time of settlement may be prescribed by Federal Reserve regulations or circulars, clearing-house rules, and the like, or agreement. In the absence of such prescription: (1) the medium of settlement is cash or credit to an account in a Federal Reserve bank of or s…
Va. Code § 8.4-212
Right of charge-back or refund; liability of collecting banks; return of item
(a) If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank or otherwise to receive a settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge-back the amount of any credit given…
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