{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-103.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-103.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-103.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-103.html"}],"law_id":71564,"edition_id":1,"section_id":71564,"structure_id":12769,"section_number":"8.4-103","catch_line":"Variation by agreement; measure of damages; action constituting ordinary care","history":"1964, c. 219; 1992, c. 693.","full_text":"a\n\nThe 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 standards by which the bank’s responsibility is to be measured if those standards are not manifestly unreasonable.b\n\nFederal reserve regulations and operating circulars, clearing house rules, and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled.c\n\nAction or nonaction approved by this title or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearing-house rules and the like or with a general banking usage not disapproved by this title, prima facie the exercise of ordinary care.d\n\nThe specification or approval of certain procedures by this title is not disapproval of other procedures that may be reasonable under the circumstances.e\n\nThe measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.","order_by":null,"text":{"0":{"id":257962,"text":"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 standards by which the bank’s responsibility is to be measured if those standards are not manifestly unreasonable.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":257963,"text":"Federal reserve regulations and operating circulars, clearing house rules, and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":257964,"text":"Action or nonaction approved by this title or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearing-house rules and the like or with a general banking usage not disapproved by this title, prima facie the exercise of ordinary care.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":257965,"text":"The specification or approval of certain procedures by this title is not disapproval of other procedures that may be reasonable under the circumstances.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":257966,"text":"The measure of damages for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages the party suffered as a proximate consequence.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d"}},"ancestry":[{"id":12769,"edition_id":1,"name":"General Provisions and Definitions","identifier":"1","label":"part","depth":2,"order_by":1,"parent_id":12768,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":282997,"object_type":"structure","relational_id":12769,"identifier":"1","token":"8.4\/1","url":"\/8.4\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12768,"edition_id":1,"name":"Commercial Code \u2014 Bank Deposits and Collections","identifier":"8.4","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":282995,"object_type":"structure","relational_id":12768,"identifier":"8.4","token":"8.4","url":"\/8.4\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":84896,"structure_id":12769,"section_number":"8.4-101","catch_line":"Short title","url":"\/8.4-101\/","token":"8.4\/1\/8.4-101","metadata":false},{"id":75718,"structure_id":12769,"section_number":"8.4-102","catch_line":"Applicability","url":"\/8.4-102\/","token":"8.4\/1\/8.4-102","metadata":false},{"id":71564,"structure_id":12769,"section_number":"8.4-103","catch_line":"Variation by agreement; measure of damages; action constituting ordinary care","url":"\/8.4-103\/","token":"8.4\/1\/8.4-103","metadata":false},{"id":73125,"structure_id":12769,"section_number":"8.4-104","catch_line":"Definitions and index of definitions","url":"\/8.4-104\/","token":"8.4\/1\/8.4-104","metadata":false},{"id":79280,"structure_id":12769,"section_number":"8.4-105","catch_line":"\"Bank\"; \"depositary bank\"; \"intermediary bank\"; \"collecting bank\"; \"payor bank\"; \"presenting bank.\"","url":"\/8.4-105\/","token":"8.4\/1\/8.4-105","metadata":false},{"id":59400,"structure_id":12769,"section_number":"8.4-105.1","catch_line":"Payable through or payable at bank; collecting bank","url":"\/8.4-105.1\/","token":"8.4\/1\/8.4-105.1","metadata":false},{"id":53957,"structure_id":12769,"section_number":"8.4-106","catch_line":"Separate office of a bank","url":"\/8.4-106\/","token":"8.4\/1\/8.4-106","metadata":false},{"id":65448,"structure_id":12769,"section_number":"8.4-107","catch_line":"Time of receipt of items","url":"\/8.4-107\/","token":"8.4\/1\/8.4-107","metadata":false},{"id":63473,"structure_id":12769,"section_number":"8.4-108","catch_line":"Delays","url":"\/8.4-108\/","token":"8.4\/1\/8.4-108","metadata":false},{"id":66349,"structure_id":12769,"section_number":"8.4-109","catch_line":"Repealed","url":"\/8.4-109\/","token":"8.4\/1\/8.4-109","metadata":false},{"id":64500,"structure_id":12769,"section_number":"8.4-110","catch_line":"Electronic presentment","url":"\/8.4-110\/","token":"8.4\/1\/8.4-110","metadata":false},{"id":72982,"structure_id":12769,"section_number":"8.4-111","catch_line":"Statute of limitations","url":"\/8.4-111\/","token":"8.4\/1\/8.4-111","metadata":false}],"previous_section":{"id":75718,"structure_id":12769,"section_number":"8.4-102","catch_line":"Applicability","url":"\/8.4-102\/","token":"8.4\/1\/8.4-102","metadata":false},"next_section":{"id":73125,"structure_id":12769,"section_number":"8.4-104","catch_line":"Definitions and index of definitions","url":"\/8.4-104\/","token":"8.4\/1\/8.4-104","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-103\/","history_text":"

This law was first created in 1964. The record of its establishment is cataloged in chapter 219 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 1964 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. 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. That modification is as follows: in 1992, chapter 693.<\/p>","references":false,"refers_to":false,"permalink":{"id":283007,"object_type":"law","relational_id":71564,"identifier":"8.4-103","token":"8.4\/1\/8.4-103","url":"\/8.4-103\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-103\/","token":"8.4\/1\/8.4-103","dublin_core":{"Title":"Variation by agreement; measure of damages; action constituting ordinary care","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-103","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> The effect of the provisions of this title may be varied by agreement but the parties to the agreement cannot disclaim a bank<\/span>’s responsibility for its lack of good faith or failure to exercise ordinary care or limit the measure of damages<\/span> for the lack or failure. However, the parties may determine by agreement the standards by which the bank<\/span>’s responsibility is to be measured if those standards are not manifestly unreasonable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Federal reserve regulations and operating circulars, clearing house rules, and the like have the effect of agreements under subsection (a), whether or not specifically assented to by all parties interested in items handled. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Action or nonaction approved by this title or pursuant to federal reserve regulations or operating circulars is the exercise of ordinary care and, in the absence of special instructions, action or nonaction consistent with clearing-house rules and the like or with a general banking usage not disapproved by this title, prima facie the exercise of ordinary care. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> The specification or approval of certain procedures by this title is not disapproval of other procedures that may be reasonable under the circumstances. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> The measure of damages<\/span> for failure to exercise ordinary care in handling an item is the amount of the item reduced by an amount that could not have been realized by the exercise of ordinary care. If there is also bad faith it includes any other damages<\/span> the party<\/span> suffered as a proximate consequence. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nVARIATION BY AGREEMENT; MEASURE OF DAMAGES; ACTION CONSTITUTING ORDINARY CARE\n(\u00a7 8.4-103)\n\na. The effect of the provisions of this title may be varied by agreement but the\nparties to the agreement cannot disclaim a bank’s responsibility for its\nlack of good faith or failure to exercise ordinary care or limit the measure of\ndamages for the lack or failure. However, the parties may determine by agreement\nthe standards by which the bank’s responsibility is to be measured if\nthose standards are not manifestly unreasonable.\n\nb. Federal reserve regulations and operating circulars, clearing house rules,\nand the like have the effect of agreements under subsection (a), whether or not\nspecifically assented to by all parties interested in items handled.\n\nc. Action or nonaction approved by this title or pursuant to federal reserve\nregulations or operating circulars is the exercise of ordinary care and, in the\nabsence of special instructions, action or nonaction consistent with\nclearing-house rules and the like or with a general banking usage not\ndisapproved by this title, prima facie the exercise of ordinary care.\n\nd. The specification or approval of certain procedures by this title is not\ndisapproval of other procedures that may be reasonable under the circumstances.\n\ne. The measure of damages for failure to exercise ordinary care in handling an\nitem is the amount of the item reduced by an amount that could not have been\nrealized by the exercise of ordinary care. If there is also bad faith it\nincludes any other damages the party suffered as a proximate consequence.\n\nHISTORY: 1964, c. 219; 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}}