{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.3A-305.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.3A-305.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.3A-305.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.3A-305.html"}],"law_id":65312,"edition_id":1,"section_id":65312,"structure_id":13055,"section_number":"8.3A-305","catch_line":"Defenses and claims in recoupment","history":"Code 1950, \u00a7\u00a7 6-367, 6-368, 6-380 through 6-409, 6-411; 1964, c. 219, \u00a7\u00a7 8.3-305, 8.3-306; 1992, c. 693.","full_text":"a\n\nExcept as stated in subsection (b), the right to enforce the obligation of a party to pay an instrument is subject to the following:1\n\na defense of the obligor based on (i) infancy of the obligor to the extent it is a defense to a simple contract, (ii) duress, lack of legal capacity, or illegality of the transaction which, under other law, nullifies the obligation of the obligor, (iii) fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms, or (iv) discharge of the obligor in insolvency proceedings;2\n\na defense of the obligor stated in another section of this title or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and3\n\na claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument; but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.b\n\nThe right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in subsection (a) (1), but is not subject to defenses of the obligor stated in subsection (a) (2) or claims in recoupment stated in subsection (a) (3) against a person other than the holder.c\n\nExcept as stated in subsection (d), in an action to enforce the obligation of a party to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument (§ 8.3A-306) of another person, but the other person’s claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.d\n\nIn an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (a) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity.","order_by":null,"text":{"0":{"id":237525,"text":"Except as stated in subsection (b), the right to enforce the obligation of a party to pay an instrument is subject to the following:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":237526,"text":"a defense of the obligor based on (i) infancy of the obligor to the extent it is a defense to a simple contract, (ii) duress, lack of legal capacity, or illegality of the transaction which, under other law, nullifies the obligation of the obligor, (iii) fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms, or (iv) discharge of the obligor in insolvency proceedings;","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":237527,"text":"a defense of the obligor stated in another section of this title or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":237528,"text":"a claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument; but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"b"},"4":{"id":237529,"text":"The right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in subsection (a) (1), but is not subject to defenses of the obligor stated in subsection (a) (2) or claims in recoupment stated in subsection (a) (3) against a person other than the holder.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a3","next_prefix":"c"},"5":{"id":237530,"text":"Except as stated in subsection (d), in an action to enforce the obligation of a party to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument (§ 8.3A-306) of another person, but the other person’s claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"6":{"id":237531,"text":"In an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (a) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c"}},"ancestry":[{"id":13055,"edition_id":1,"name":"Enforcement of Instruments","identifier":"3","label":"part","depth":2,"order_by":1,"parent_id":13054,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":282819,"object_type":"structure","relational_id":13055,"identifier":"3","token":"8.3A\/3","url":"\/8.3A\/3\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13054,"edition_id":1,"name":"Commercial Code \u2014 Negotiable Instruments","identifier":"8.3A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":282705,"object_type":"structure","relational_id":13054,"identifier":"8.3A","token":"8.3A","url":"\/8.3A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":65014,"structure_id":13055,"section_number":"8.3A-301","catch_line":"Person entitled to enforce instrument","url":"\/8.3A-301\/","token":"8.3A\/3\/8.3A-301","metadata":false},{"id":57239,"structure_id":13055,"section_number":"8.3A-302","catch_line":"Holder in due course","url":"\/8.3A-302\/","token":"8.3A\/3\/8.3A-302","metadata":false},{"id":57109,"structure_id":13055,"section_number":"8.3A-303","catch_line":"Value and consideration","url":"\/8.3A-303\/","token":"8.3A\/3\/8.3A-303","metadata":false},{"id":54111,"structure_id":13055,"section_number":"8.3A-304","catch_line":"Overdue instrument","url":"\/8.3A-304\/","token":"8.3A\/3\/8.3A-304","metadata":false},{"id":65312,"structure_id":13055,"section_number":"8.3A-305","catch_line":"Defenses and claims in recoupment","url":"\/8.3A-305\/","token":"8.3A\/3\/8.3A-305","metadata":false},{"id":70356,"structure_id":13055,"section_number":"8.3A-306","catch_line":"Claims to an instrument","url":"\/8.3A-306\/","token":"8.3A\/3\/8.3A-306","metadata":false},{"id":57726,"structure_id":13055,"section_number":"8.3A-307","catch_line":"Notice of breach of fiduciary duty","url":"\/8.3A-307\/","token":"8.3A\/3\/8.3A-307","metadata":false},{"id":60258,"structure_id":13055,"section_number":"8.3A-308","catch_line":"Proof of signatures and status as holder in due course","url":"\/8.3A-308\/","token":"8.3A\/3\/8.3A-308","metadata":false},{"id":57632,"structure_id":13055,"section_number":"8.3A-309","catch_line":"Enforcement of lost, destroyed, or stolen instrument","url":"\/8.3A-309\/","token":"8.3A\/3\/8.3A-309","metadata":false},{"id":82224,"structure_id":13055,"section_number":"8.3A-310","catch_line":"Effect of instrument on obligation for which taken","url":"\/8.3A-310\/","token":"8.3A\/3\/8.3A-310","metadata":false},{"id":83612,"structure_id":13055,"section_number":"8.3A-311","catch_line":"Accord and satisfaction by use of instrument","url":"\/8.3A-311\/","token":"8.3A\/3\/8.3A-311","metadata":false},{"id":82560,"structure_id":13055,"section_number":"8.3A-312","catch_line":"Lost, destroyed, or stolen cashier's check, teller's check, or certified check","url":"\/8.3A-312\/","token":"8.3A\/3\/8.3A-312","metadata":false}],"previous_section":{"id":54111,"structure_id":13055,"section_number":"8.3A-304","catch_line":"Overdue instrument","url":"\/8.3A-304\/","token":"8.3A\/3\/8.3A-304","metadata":false},"next_section":{"id":70356,"structure_id":13055,"section_number":"8.3A-306","catch_line":"Claims to an instrument","url":"\/8.3A-306\/","token":"8.3A\/3\/8.3A-306","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.3A-305\/","history_text":"

The record of this law\u2019s original creation isn\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 1964, chapter 219; in 1992, chapter 693.<\/p>","references":[{"id":57239,"section_number":"8.3A-302","catch_line":"Holder in due course","order_by":null,"url":"\/8.3A-302\/"},{"id":56757,"section_number":"8.4-207.1","catch_line":"Transfer warranties","order_by":null,"url":"\/8.4-207.1\/"},{"id":81896,"section_number":"8.9A-403","catch_line":"Agreement not to assert defenses against assignee","order_by":null,"url":"\/8.9A-403\/"}],"refers_to":[{"id":70356,"section_number":"8.3A-306","catch_line":"Claims to an instrument","order_by":null,"url":"\/8.3A-306\/"}],"permalink":{"id":282837,"object_type":"law","relational_id":65312,"identifier":"8.3A-305","token":"8.3A\/3\/8.3A-305","url":"\/8.3A-305\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.3A-305\/","token":"8.3A\/3\/8.3A-305","dublin_core":{"Title":"Defenses and claims in recoupment","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.3A-305","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Except as stated in subsection (b), the right to enforce the obligation of a party<\/span> to pay an instrument is subject to the following: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> a defense of the obligor based on (i) infancy of the obligor to the extent it is a defense to a simple contract<\/span>, (ii) duress, lack of legal capacity, or illegality of the transaction which, under other law<\/span>, nullifies the obligation of the obligor, (iii) fraud<\/span> that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms, or (iv) discharge of the obligor in insolvency proceedings; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> a defense of the obligor stated in another section of this title or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> a claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument; but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> The right of a holder in due course to enforce the obligation of a party<\/span> to pay the instrument is subject to defenses of the obligor stated in subsection (a) (1), but is not subject to defenses of the obligor stated in subsection (a) (2) or claims in recoupment stated in subsection (a) (3) against a person other than the holder. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Except as stated in subsection (d), in an action to enforce the obligation of a party<\/span> to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument (§ 8.3A-306<\/a>) of another person, but the other person’s claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> In an action to enforce the obligation of an accommodation party<\/span> to pay an instrument, the accommodation party<\/span> may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (a) that the accommodated party<\/span> could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFENSES AND CLAIMS IN RECOUPMENT (\u00a7 8.3A-305)\n\na. Except as stated in subsection (b), the right to enforce the obligation of a\nparty to pay an instrument is subject to the following:\n\n 1. a defense of the obligor based on (i) infancy of the obligor to the extent\n it is a defense to a simple contract, (ii) duress, lack of legal capacity, or\n illegality of the transaction which, under other law, nullifies the obligation\n of the obligor, (iii) fraud that induced the obligor to sign the instrument\n with neither knowledge nor reasonable opportunity to learn of its character or\n its essential terms, or (iv) discharge of the obligor in insolvency\n proceedings;\n\n 2. a defense of the obligor stated in another section of this title or a\n defense of the obligor that would be available if the person entitled to\n enforce the instrument were enforcing a right to payment under a simple\n contract; and\n\n 3. a claim in recoupment of the obligor against the original payee of the\n instrument if the claim arose from the transaction that gave rise to the\n instrument; but the claim of the obligor may be asserted against a transferee\n of the instrument only to reduce the amount owing on the instrument at the\n time the action is brought.\n\nb. The right of a holder in due course to enforce the obligation of a party to\npay the instrument is subject to defenses of the obligor stated in subsection\n(a) (1), but is not subject to defenses of the obligor stated in subsection (a)\n(2) or claims in recoupment stated in subsection (a) (3) against a person other\nthan the holder.\n\nc. Except as stated in subsection (d), in an action to enforce the obligation of\na party to pay the instrument, the obligor may not assert against the person\nentitled to enforce the instrument a defense, claim in recoupment, or claim to\nthe instrument (§ 8.3A-306) of another person, but the other person’s\nclaim to the instrument may be asserted by the obligor if the other person is\njoined in the action and personally asserts the claim against the person\nentitled to enforce the instrument. An obligor is not obliged to pay the\ninstrument if the person seeking enforcement of the instrument does not have\nrights of a holder in due course and the obligor proves that the instrument is a\nlost or stolen instrument.\n\nd. In an action to enforce the obligation of an accommodation party to pay an\ninstrument, the accommodation party may assert against the person entitled to\nenforce the instrument any defense or claim in recoupment under subsection (a)\nthat the accommodated party could assert against the person entitled to enforce\nthe instrument, except the defenses of discharge in insolvency proceedings,\ninfancy, and lack of legal capacity.\n\nHISTORY: Code 1950, \u00a7\u00a7 6-367, 6-368, 6-380 through 6-409, 6-411; 1964, c. 219,\n\u00a7\u00a7 8.3-305, 8.3-306; 1992, c. 693.","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}}