{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-207.3.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-207.3.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-207.3.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-207.3.html"}],"law_id":58319,"edition_id":1,"section_id":58319,"structure_id":14847,"section_number":"8.4-207.3","catch_line":"Encoding and retention warranties","history":"1992, c. 693.","full_text":"a\n\nA 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\n\nA person who undertakes to retain an item pursuant to an agreement for electric presentment warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.c\n\nA person to whom warranties are made under this section and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result of the breach.","order_by":null,"text":{"0":{"id":213592,"text":"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.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":213593,"text":"A person who undertakes to retain an item pursuant to an agreement for electric presentment warrants to any subsequent collecting bank and to the payor bank or other payor that retention and presentment of the item comply with the agreement. If a customer of a depositary bank undertakes to retain an item, that bank also makes this warranty.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":213594,"text":"A person to whom warranties are made under this section and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result of the breach.","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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-207.3\/","history_text":"

This law was first created in 1992. The record of its establishment is cataloged in chapter 693 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 1992 \u201cActs\u201d aren\u2019t available online.<\/p>","references":false,"refers_to":false,"permalink":{"id":283089,"object_type":"law","relational_id":58319,"identifier":"8.4-207.3","token":"8.4\/2\/8.4-207.3","url":"\/8.4-207.3\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-207.3\/","token":"8.4\/2\/8.4-207.3","dublin_core":{"Title":"Encoding and retention warranties","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-207.3","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A person who encodes information on or with respect to an item after issue<\/span> warrants to any subsequent collecting bank<\/span> and to the payor bank<\/span> or other payor that the information is correctly encoded. If the customer of a depositary bank<\/span> encodes, that bank also makes the warranty. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A person who undertakes to retain an item pursuant to an agreement for electric presentment<\/span> warrants to any subsequent collecting bank<\/span> and to the payor bank<\/span> or other payor that retention and presentment<\/span> of the item comply with the agreement. If a customer of a depositary bank<\/span> undertakes to retain an item, that bank also makes this warranty. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A person to whom warranties are made under this section and who took the item in good faith may recover from the warrantor as damages<\/span> for breach of warranty an amount equal to the loss suffered as a result of the breach, plus expenses and loss of interest incurred as a result of the breach. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nENCODING AND RETENTION WARRANTIES (\u00a7 8.4-207.3)\n\na. A person who encodes information on or with respect to an item after issue\nwarrants to any subsequent collecting bank and to the payor bank or other payor\nthat the information is correctly encoded. If the customer of a depositary bank\nencodes, that bank also makes the warranty.\n\nb. A person who undertakes to retain an item pursuant to an agreement for\nelectric presentment warrants to any subsequent collecting bank and to the payor\nbank or other payor that retention and presentment of the item comply with the\nagreement. If a customer of a depositary bank undertakes to retain an item, that\nbank also makes this warranty.\n\nc. A person to whom warranties are made under this section and who took the item\nin good faith may recover from the warrantor as damages for breach of warranty\nan amount equal to the loss suffered as a result of the breach, plus expenses\nand loss of interest incurred as a result of the breach.\n\nHISTORY: 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}}