{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/58.1-535.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/58.1-535.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/58.1-535.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/58.1-535.html"}],"law_id":73852,"edition_id":1,"section_id":73852,"structure_id":13797,"section_number":"58.1-535","catch_line":"Application of funds on deposit","history":"1988, cc. 563, 768; 1989, c. 77; 1999, c. 631.","full_text":"A\n\nIn addition to the collection remedy provided in this article, if a claimant agency has on deposit any funds which are due to the debtor, the claimant agency may apply such funds to the payment of any delinquent debt which the debtor owes to the claimant agency, provided that the claimant agency first provides written notification to the debtor of its intent to apply the funds against the debt.B\n\nThe contents of the written notification to the debtor shall clearly set forth the basis for the claim to the funds on deposit, the intention to apply the funds against the debt to the claimant agency, and the right of the debtor to contest the validity of the claim before the claimant agency.C\n\nIf as the result of an error by the claimant agency a debtor is denied all or a portion of his funds under the provisions of this section, interest shall be paid by the claimant agency to the debtor at the overpayment rate provided in § 58.1-15 for the time such funds were denied, except that a county, city or town shall pay interest in the manner prescribed in § 58.1-3916 or § 58.1-3918.D\n\nAs used in this section:\n\t\t\t“Debtor” means any individual, business or group having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy.\n\t\t\t“Funds on deposit” means any funds of a debtor that a claimant agency may have in its possession, including overpayments of taxes and any funds due to a debtor arising from a contractual agreement with a claimant agency.","order_by":null,"text":{"0":{"id":265569,"text":"In addition to the collection remedy provided in this article, if a claimant agency has on deposit any funds which are due to the debtor, the claimant agency may apply such funds to the payment of any delinquent debt which the debtor owes to the claimant agency, provided that the claimant agency first provides written notification to the debtor of its intent to apply the funds against the debt.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":265570,"text":"The contents of the written notification to the debtor shall clearly set forth the basis for the claim to the funds on deposit, the intention to apply the funds against the debt to the claimant agency, and the right of the debtor to contest the validity of the claim before the claimant agency.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":265571,"text":"If as the result of an error by the claimant agency a debtor is denied all or a portion of his funds under the provisions of this section, interest shall be paid by the claimant agency to the debtor at the overpayment rate provided in § 58.1-15 for the time such funds were denied, except that a county, city or town shall pay interest in the manner prescribed in § 58.1-3916 or § 58.1-3918.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":265572,"text":"As used in this section:\n\t\t\t“Debtor” means any individual, business or group having a delinquent debt or account with any claimant agency which obligation has not been satisfied by court order, set aside by court order, or discharged in bankruptcy.\n\t\t\t“Funds on deposit” means any funds of a debtor that a claimant agency may have in its possession, including overpayments of taxes and any funds due to a debtor arising from a contractual agreement with a claimant agency.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C"}},"ancestry":[{"id":13797,"edition_id":1,"name":"Setoff Debt Collection Act","identifier":"21","label":"article","depth":4,"order_by":1,"parent_id":13152,"metadata":{},"date_created":"2026-06-26 03:45:54","date_modified":"2026-06-26 03:45:54","permalink":{"id":254073,"object_type":"structure","relational_id":13797,"identifier":"21","token":"58.1\/I\/3\/21","url":"\/58.1\/I\/3\/21\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13152,"edition_id":1,"name":"Income Tax","identifier":"3","label":"chapter","depth":3,"order_by":1,"parent_id":12837,"metadata":{},"date_created":"2026-06-26 03:44:21","date_modified":"2026-06-26 03:44:21","permalink":{"id":253267,"object_type":"structure","relational_id":13152,"identifier":"3","token":"58.1\/I\/3","url":"\/58.1\/I\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12837,"edition_id":1,"name":"Taxes Administered by the Department of Taxation","identifier":"I","label":"subtitle","depth":2,"order_by":1,"parent_id":12703,"metadata":{},"date_created":"2026-06-26 03:43:55","date_modified":"2026-06-26 03:43:55","permalink":{"id":252075,"object_type":"structure","relational_id":12837,"identifier":"I","token":"58.1\/I","url":"\/58.1\/I\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12703,"edition_id":1,"name":"Taxation","identifier":"58.1","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:49","date_modified":"2026-06-26 03:43:49","permalink":{"id":251959,"object_type":"structure","relational_id":12703,"identifier":"58.1","token":"58.1","url":"\/58.1\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":57268,"structure_id":13797,"section_number":"58.1-520","catch_line":"(Contingent effective date) Definitions","url":"\/58.1-520\/","token":"58.1\/I\/3\/21\/58.1-520","metadata":false},{"id":85150,"structure_id":13797,"section_number":"58.1-520.1","catch_line":"Recovery of administrative costs","url":"\/58.1-520.1\/","token":"58.1\/I\/3\/21\/58.1-520.1","metadata":false},{"id":83424,"structure_id":13797,"section_number":"58.1-521","catch_line":"Remedy additional; mandatory usage; obtaining identifying information","url":"\/58.1-521\/","token":"58.1\/I\/3\/21\/58.1-521","metadata":false},{"id":79236,"structure_id":13797,"section_number":"58.1-522","catch_line":"Participation in setoff program not permitted in certain instances","url":"\/58.1-522\/","token":"58.1\/I\/3\/21\/58.1-522","metadata":false},{"id":76318,"structure_id":13797,"section_number":"58.1-523","catch_line":"Department to aid in collection of sums due claimant agencies through setoff","url":"\/58.1-523\/","token":"58.1\/I\/3\/21\/58.1-523","metadata":false},{"id":69012,"structure_id":13797,"section_number":"58.1-524","catch_line":"Notification of Department by claimant agency; action of Department","url":"\/58.1-524\/","token":"58.1\/I\/3\/21\/58.1-524","metadata":false},{"id":64147,"structure_id":13797,"section_number":"58.1-525","catch_line":"Notification of intention to set off and right to hearing","url":"\/58.1-525\/","token":"58.1\/I\/3\/21\/58.1-525","metadata":false},{"id":84436,"structure_id":13797,"section_number":"58.1-526","catch_line":"Hearing procedure","url":"\/58.1-526\/","token":"58.1\/I\/3\/21\/58.1-526","metadata":false},{"id":85890,"structure_id":13797,"section_number":"58.1-527","catch_line":"Appeals from hearings","url":"\/58.1-527\/","token":"58.1\/I\/3\/21\/58.1-527","metadata":false},{"id":69445,"structure_id":13797,"section_number":"58.1-528","catch_line":"Certification of debt by claimant agency; finalization of setoff","url":"\/58.1-528\/","token":"58.1\/I\/3\/21\/58.1-528","metadata":false},{"id":54805,"structure_id":13797,"section_number":"58.1-529","catch_line":"Notice of final setoff","url":"\/58.1-529\/","token":"58.1\/I\/3\/21\/58.1-529","metadata":false},{"id":86299,"structure_id":13797,"section_number":"58.1-530","catch_line":"(Contingent effective date -- see Editor's note) Priorities in claims to be setoff","url":"\/58.1-530\/","token":"58.1\/I\/3\/21\/58.1-530","metadata":false},{"id":85971,"structure_id":13797,"section_number":"58.1-531","catch_line":"Disposition of proceeds collected; Department's annual statement of costs","url":"\/58.1-531\/","token":"58.1\/I\/3\/21\/58.1-531","metadata":false},{"id":77927,"structure_id":13797,"section_number":"58.1-531.1","catch_line":"Errors in setoff program","url":"\/58.1-531.1\/","token":"58.1\/I\/3\/21\/58.1-531.1","metadata":false},{"id":69888,"structure_id":13797,"section_number":"58.1-532","catch_line":"Accounting to claimant agency; confidentiality; credit to debtor's obligation","url":"\/58.1-532\/","token":"58.1\/I\/3\/21\/58.1-532","metadata":false},{"id":84365,"structure_id":13797,"section_number":"58.1-533","catch_line":"Confidentiality exemption; use of information obtained","url":"\/58.1-533\/","token":"58.1\/I\/3\/21\/58.1-533","metadata":false},{"id":66617,"structure_id":13797,"section_number":"58.1-534","catch_line":"Rules and regulations","url":"\/58.1-534\/","token":"58.1\/I\/3\/21\/58.1-534","metadata":false},{"id":73852,"structure_id":13797,"section_number":"58.1-535","catch_line":"Application of funds on deposit","url":"\/58.1-535\/","token":"58.1\/I\/3\/21\/58.1-535","metadata":false}],"previous_section":{"id":66617,"structure_id":13797,"section_number":"58.1-534","catch_line":"Rules and regulations","url":"\/58.1-534\/","token":"58.1\/I\/3\/21\/58.1-534","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/58.1-535\/","history_text":"

This law was first created in 1988. The record of its establishment is cataloged in chapters 563 and 768 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. Unfortunately, the 1988 \u201cActs\u201d aren\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1989, chapter 77; in 1999, chapter 631<\/a>.<\/p>","references":[{"id":82621,"section_number":"19.2-305.1","catch_line":"Restitution for property damage or loss; community service","order_by":null,"url":"\/19.2-305.1\/"}],"refers_to":[{"id":77006,"section_number":"58.1-15","catch_line":"Rate of interest","order_by":null,"url":"\/58.1-15\/"},{"id":73325,"section_number":"58.1-3916","catch_line":"Counties, cities, and towns may provide dates for filing returns and set penalties, interest, etc","order_by":null,"url":"\/58.1-3916\/"}],"permalink":{"id":254143,"object_type":"law","relational_id":73852,"identifier":"58.1-535","token":"58.1\/I\/3\/21\/58.1-535","url":"\/58.1-535\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/58.1-535\/","token":"58.1\/I\/3\/21\/58.1-535","dublin_core":{"Title":"Application of funds on deposit","Type":"Text","Format":"text\/html","Identifier":"\u00a7 58.1-535","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> In addition to the collection remedy provided in this article, if a claimant agency<\/span> has on deposit any funds which are due to the debtor<\/span>, the claimant agency<\/span> may apply such funds to the payment of any delinquent debt<\/span> which the debtor<\/span> owes to the claimant agency<\/span>, provided that the claimant agency<\/span> first provides written notification to the debtor<\/span> of its intent<\/span> to apply the funds against the debt. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The contents of the written notification to the debtor<\/span> shall clearly set forth the basis for the claim to the funds on deposit<\/span>, the intention to apply the funds against the debt to the claimant agency<\/span>, and the right of the debtor<\/span> to contest the validity of the claim before the claimant agency<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> If as the result of an error by the claimant agency<\/span> a debtor<\/span> is denied all or a portion of his funds under the provisions of this section, interest shall be paid by the claimant agency<\/span> to the debtor<\/span> at the overpayment rate provided in § 58.1-15<\/a> for the time such funds were denied, except that a county, city or town shall pay interest in the manner prescribed in § 58.1-3916<\/a> or § 58.1-3918<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> As used in this section:\n\t\t\t“Debtor<\/span>” means any individual<\/span>, business or group having a delinquent debt<\/span> or account with any claimant agency<\/span> which obligation has not been satisfied by court order<\/span>, set aside by court order<\/span>, or discharged in bankruptcy<\/span>.\n\t\t\t“Funds on deposit<\/span>” means any funds of a debtor<\/span> that a claimant agency<\/span> may have in its possession<\/span>, including overpayments of taxes and any funds due to a debtor<\/span> arising from a contractual agreement with a claimant agency<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPLICATION OF FUNDS ON DEPOSIT (\u00a7 58.1-535)\n\nA. In addition to the collection remedy provided in this article, if a claimant\nagency has on deposit any funds which are due to the debtor, the claimant agency\nmay apply such funds to the payment of any delinquent debt which the debtor owes\nto the claimant agency, provided that the claimant agency first provides written\nnotification to the debtor of its intent to apply the funds against the debt.\n\nB. The contents of the written notification to the debtor shall clearly set\nforth the basis for the claim to the funds on deposit, the intention to apply\nthe funds against the debt to the claimant agency, and the right of the debtor\nto contest the validity of the claim before the claimant agency.\n\nC. If as the result of an error by the claimant agency a debtor is denied all or\na portion of his funds under the provisions of this section, interest shall be\npaid by the claimant agency to the debtor at the overpayment rate provided in\n§ 58.1-15 for the time such funds were denied, except that a county, city\nor town shall pay interest in the manner prescribed in § 58.1-3916 or\n§ 58.1-3918.\n\nD. As used in this section:\n\t\t\t“Debtor” means any individual, business or group having a\ndelinquent debt or account with any claimant agency which obligation has not\nbeen satisfied by court order, set aside by court order, or discharged in\nbankruptcy.\n\t\t\t“Funds on deposit” means any funds of a debtor that a claimant\nagency may have in its possession, including overpayments of taxes and any funds\ndue to a debtor arising from a contractual agreement with a claimant agency.\n\nHISTORY: 1988, cc. 563, 768; 1989, c. 77; 1999, c. 631.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}