{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-208.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-208.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-208.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-208.html"}],"law_id":83512,"edition_id":1,"section_id":83512,"structure_id":14847,"section_number":"8.4-208","catch_line":"Security interest of collecting bank in items, accompanying documents and proceeds","history":"1964, c. 219; 1992, c. 693; 2000, c. 1007; 2004, c. 200.","full_text":"a\n\nA collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:1\n\nin case of an item deposited in an account to the extent to which credit given for the item has been withdrawn or applied;2\n\nin case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or3\n\nif it makes an advance on or against the item.b\n\nIf credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.c\n\nReceipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Title 8.9A but:1\n\nno security agreement is necessary to make the security interest enforceable (subdivision (b) (3) (A) of § 8.9A-203); and2\n\nno filing is required to perfect the security interest; and3\n\nthe security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds.","order_by":null,"text":{"0":{"id":299258,"text":"A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":299259,"text":"in case of an item deposited in an account to the extent to which credit given for the item has been withdrawn or applied;","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":299260,"text":"in case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":299261,"text":"if it makes an advance on or against the item.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"b"},"4":{"id":299262,"text":"If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a3","next_prefix":"c"},"5":{"id":299263,"text":"Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Title 8.9A but:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"c1"},"6":{"id":299264,"text":"no security agreement is necessary to make the security interest enforceable (subdivision (b) (3) (A) of § 8.9A-203); and","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"7":{"id":299265,"text":"no filing is required to perfect the security interest; and","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"c3"},"8":{"id":299266,"text":"the security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds.","type":"section","prefixes":["c","3"],"prefix":"3","entire_prefix":"c3","prefix_anchor":"c3","level":2,"prior_prefix":"c2"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-208\/","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 3 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 1992, chapter 693; in 2000, chapter 1007<\/a>; in 2004, chapter 200<\/a>.<\/p>","references":false,"refers_to":[{"id":74128,"section_number":"8.9A-203","catch_line":"Attachment and enforceability of security interest; proceeds, supporting obligations; formal requisites","order_by":null,"url":"\/8.9A-203\/"}],"permalink":{"id":283093,"object_type":"law","relational_id":83512,"identifier":"8.4-208","token":"8.4\/2\/8.4-208","url":"\/8.4-208\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-208\/","token":"8.4\/2\/8.4-208","dublin_core":{"Title":"Security interest of collecting bank in items, accompanying documents and proceeds","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-208","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A collecting bank<\/span> has a security interest in an item and any accompanying documents or the proceeds of either: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> in case of an item deposited in an account to the extent to which credit given for the item has been withdrawn or applied; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> in case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> if it makes an advance on or against the item. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents or the proceeds of either. For the purpose of this section, credits first given are first withdrawn. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Receipt by a collecting bank<\/span> of a final settlement<\/span> for an item is a realization on its security interest in the item, accompanying documents and proceeds. So long as the bank does not receive final settlement<\/span> for the item or give up possession<\/span> of the item or possession<\/span> or control of accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Title 8.9A but: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> no security agreement is necessary to make the security interest enforceable (subdivision (b) (3) (A) of § 8.9A-203<\/a>); and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> no filing is required to perfect the security interest; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the security interest has priority over conflicting perfected security interests in the item, accompanying documents or proceeds. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSECURITY INTEREST OF COLLECTING BANK IN ITEMS, ACCOMPANYING DOCUMENTS AND\nPROCEEDS (\u00a7 8.4-208)\n\na. A collecting bank has a security interest in an item and any accompanying\ndocuments or the proceeds of either:\n\n 1. in case of an item deposited in an account to the extent to which credit\n given for the item has been withdrawn or applied;\n\n 2. in case of an item for which it has given credit available for withdrawal\n as of right, to the extent of the credit given, whether or not the credit is\n drawn upon or there is a right of charge-back; or\n\n 3. if it makes an advance on or against the item.\n\nb. If credit given for several items received at one time or pursuant to a\nsingle agreement is withdrawn or applied in part, the security interest remains\nupon all the items, any accompanying documents or the proceeds of either. For\nthe purpose of this section, credits first given are first withdrawn.\n\nc. Receipt by a collecting bank of a final settlement for an item is a\nrealization on its security interest in the item, accompanying documents and\nproceeds. So long as the bank does not receive final settlement for the item or\ngive up possession of the item or possession or control of accompanying\ndocuments for purposes other than collection, the security interest continues to\nthat extent and is subject to Title 8.9A but:\n\n 1. no security agreement is necessary to make the security interest\n enforceable (subdivision (b) (3) (A) of § 8.9A-203); and\n\n 2. no filing is required to perfect the security interest; and\n\n 3. the security interest has priority over conflicting perfected security\n interests in the item, accompanying documents or proceeds.\n\nHISTORY: 1964, c. 219; 1992, c. 693; 2000, c. 1007; 2004, c. 200.","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}}