{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-202.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-202.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-202.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-202.html"}],"law_id":70013,"edition_id":1,"section_id":70013,"structure_id":14847,"section_number":"8.4-202","catch_line":"Responsibility for collection or return; when action timely","history":"Code 1950, \u00a7 6-63; 1964, c. 219; 1992, c. 693.","full_text":"a\n\nA collecting bank must exercise ordinary care in:1\n\npresenting an item or sending it for presentment;2\n\nsending 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\n\nsettling for an item when the bank receives final settlement; and4\n\nnotifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.b\n\nA collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.c\n\nSubject to subsection (a) (1), a bank is not liable for the insolvency, neglect, misconduct, mistake or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.","order_by":null,"text":{"0":{"id":252959,"text":"A collecting bank must exercise ordinary care in:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":252960,"text":"presenting an item or sending it for presentment;","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":252961,"text":"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;","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":252962,"text":"settling for an item when the bank receives final settlement; and","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"a4"},"4":{"id":252963,"text":"notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.","type":"section","prefixes":["a","4"],"prefix":"4","entire_prefix":"a4","prefix_anchor":"a4","level":2,"prior_prefix":"a3","next_prefix":"b"},"5":{"id":252964,"text":"A collecting bank exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a4","next_prefix":"c"},"6":{"id":252965,"text":"Subject to subsection (a) (1), a bank is not liable for the insolvency, neglect, misconduct, mistake or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b"}},"ancestry":[{"id":14847,"edition_id":1,"name":"Collection of Items: Depositary and Collecting Banks","identifier":"2","label":"part","depth":2,"order_by":1,"parent_id":12768,"metadata":{},"date_created":"2026-06-26 03:50:22","date_modified":"2026-06-26 03:50:22","permalink":{"id":283047,"object_type":"structure","relational_id":14847,"identifier":"2","token":"8.4\/2","url":"\/8.4\/2\/","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":61258,"structure_id":14847,"section_number":"8.4-201","catch_line":"Status of collecting bank as agent and provisional status of credits; applicability of title; item endorsed \"pay any bank.\"","url":"\/8.4-201\/","token":"8.4\/2\/8.4-201","metadata":false},{"id":70013,"structure_id":14847,"section_number":"8.4-202","catch_line":"Responsibility for collection or return; when action timely","url":"\/8.4-202\/","token":"8.4\/2\/8.4-202","metadata":false},{"id":81502,"structure_id":14847,"section_number":"8.4-203","catch_line":"Effect of instructions","url":"\/8.4-203\/","token":"8.4\/2\/8.4-203","metadata":false},{"id":58958,"structure_id":14847,"section_number":"8.4-204","catch_line":"Methods of sending and presenting; sending directly to payor bank","url":"\/8.4-204\/","token":"8.4\/2\/8.4-204","metadata":false},{"id":67407,"structure_id":14847,"section_number":"8.4-205","catch_line":"Repealed","url":"\/8.4-205\/","token":"8.4\/2\/8.4-205","metadata":false},{"id":85489,"structure_id":14847,"section_number":"8.4-205.1","catch_line":"Depositary bank holder of unendorsed item","url":"\/8.4-205.1\/","token":"8.4\/2\/8.4-205.1","metadata":false},{"id":78749,"structure_id":14847,"section_number":"8.4-206","catch_line":"Transfer between banks","url":"\/8.4-206\/","token":"8.4\/2\/8.4-206","metadata":false},{"id":69127,"structure_id":14847,"section_number":"8.4-207","catch_line":"Repealed","url":"\/8.4-207\/","token":"8.4\/2\/8.4-207","metadata":false},{"id":56757,"structure_id":14847,"section_number":"8.4-207.1","catch_line":"Transfer warranties","url":"\/8.4-207.1\/","token":"8.4\/2\/8.4-207.1","metadata":false},{"id":80890,"structure_id":14847,"section_number":"8.4-207.2","catch_line":"Presentment warranties","url":"\/8.4-207.2\/","token":"8.4\/2\/8.4-207.2","metadata":false},{"id":58319,"structure_id":14847,"section_number":"8.4-207.3","catch_line":"Encoding and retention warranties","url":"\/8.4-207.3\/","token":"8.4\/2\/8.4-207.3","metadata":false},{"id":83512,"structure_id":14847,"section_number":"8.4-208","catch_line":"Security interest of collecting bank in items, accompanying documents and proceeds","url":"\/8.4-208\/","token":"8.4\/2\/8.4-208","metadata":false},{"id":69286,"structure_id":14847,"section_number":"8.4-209","catch_line":"When bank gives value for purposes of holder in due course","url":"\/8.4-209\/","token":"8.4\/2\/8.4-209","metadata":false},{"id":64339,"structure_id":14847,"section_number":"8.4-210","catch_line":"Presentment by notice of item not payable by, through or at a bank; liability of drawer or endorser","url":"\/8.4-210\/","token":"8.4\/2\/8.4-210","metadata":false},{"id":71107,"structure_id":14847,"section_number":"8.4-211","catch_line":"Repealed","url":"\/8.4-211\/","token":"8.4\/2\/8.4-211","metadata":false},{"id":74613,"structure_id":14847,"section_number":"8.4-211.1","catch_line":"Medium and time of settlement by bank","url":"\/8.4-211.1\/","token":"8.4\/2\/8.4-211.1","metadata":false},{"id":71273,"structure_id":14847,"section_number":"8.4-212","catch_line":"Right of charge-back or refund; liability of collecting banks; return of item","url":"\/8.4-212\/","token":"8.4\/2\/8.4-212","metadata":false},{"id":63165,"structure_id":14847,"section_number":"8.4-213","catch_line":"Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal","url":"\/8.4-213\/","token":"8.4\/2\/8.4-213","metadata":false},{"id":83511,"structure_id":14847,"section_number":"8.4-214","catch_line":"Insolvency and preference","url":"\/8.4-214\/","token":"8.4\/2\/8.4-214","metadata":false}],"previous_section":{"id":61258,"structure_id":14847,"section_number":"8.4-201","catch_line":"Status of collecting bank as agent and provisional status of credits; applicability of title; item endorsed \"pay any bank.\"","url":"\/8.4-201\/","token":"8.4\/2\/8.4-201","metadata":false},"next_section":{"id":81502,"structure_id":14847,"section_number":"8.4-203","catch_line":"Effect of instructions","url":"\/8.4-203\/","token":"8.4\/2\/8.4-203","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-202\/","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":false,"refers_to":false,"permalink":{"id":283053,"object_type":"law","relational_id":70013,"identifier":"8.4-202","token":"8.4\/2\/8.4-202","url":"\/8.4-202\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-202\/","token":"8.4\/2\/8.4-202","dublin_core":{"Title":"Responsibility for collection or return; when action timely","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-202","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A collecting bank<\/span> must exercise ordinary care in: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> presenting an item or sending it for presentment<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> 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; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> settling for an item when the bank receives final settlement<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> notifying its transferor of any loss or delay in transit within a reasonable time after discovery<\/span> thereof. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A collecting bank<\/span> exercises ordinary care under subsection (a) by taking proper action before its midnight deadline following receipt of an item, notice, or settlement<\/span>. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Subject to subsection (a) (1), a bank is not liable for the insolvency, neglect, misconduct, mistake or default<\/span> of another bank or person or for loss or destruction of an item in the possession<\/span> of others or in transit. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRESPONSIBILITY FOR COLLECTION OR RETURN; WHEN ACTION TIMELY (\u00a7 8.4-202)\n\na. A collecting bank must exercise ordinary care in:\n\n 1. presenting an item or sending it for presentment;\n\n 2. sending notice of dishonor or nonpayment or returning an item other than a\n documentary draft to the bank’s transferor after learning that the item\n has not been paid or accepted, as the case may be;\n\n 3. settling for an item when the bank receives final settlement; and\n\n 4. notifying its transferor of any loss or delay in transit within a\n reasonable time after discovery thereof.\n\nb. A collecting bank exercises ordinary care under subsection (a) by taking\nproper action before its midnight deadline following receipt of an item, notice,\nor settlement. Taking proper action within a reasonably longer time may\nconstitute the exercise of ordinary care, but the bank has the burden of\nestablishing timeliness.\n\nc. Subject to subsection (a) (1), a bank is not liable for the insolvency,\nneglect, misconduct, mistake or default of another bank or person or for loss or\ndestruction of an item in the possession of others or in transit.\n\nHISTORY: Code 1950, \u00a7 6-63; 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}}