{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-212.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-212.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-212.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-212.html"}],"law_id":71273,"edition_id":1,"section_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","history":"1964, c. 219; 1992, c. 693.","full_text":"a\n\nIf a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank or otherwise to receive a settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge-back the amount of any credit given for the item to its customer’s account or obtain refund from its customer, whether or not it is able to return the item, if by its midnight deadline or within a longer reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank’s midnight deadline or a longer reasonable time after it learns the facts, the bank may revoke the settlement, charge-back the credit or obtain a refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge-back and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final.b\n\nA collecting bank returns an item when it is sent or delivered to the bank’s customer or transferor or pursuant to its instructions.c\n\nA depositary bank that is also the payor may charge-back the amount of an item to its customer’s account or obtain refund in accordance with the section governing return of an item received by a payor bank for credit on its books (§ 8.4-301).d\n\nThe right to charge-back is not affected by:1\n\nprevious use of a credit given for the item; or2\n\nfailure by any bank to exercise ordinary care with respect to the item but any bank so failing remains liable.e\n\nA failure to charge-back or claim refund does not affect other rights of the bank against the customer or any other party.f\n\nIf credit is given in dollars as the equivalent of the value of an item payable in a foreign money the dollar amount of any charge-back or refund shall be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.","order_by":null,"text":{"0":{"id":256875,"text":"If a collecting bank has made provisional settlement with its customer for an item and fails by reason of dishonor, suspension of payments by a bank or otherwise to receive a settlement for the item which is or becomes final, the bank may revoke the settlement given by it, charge-back the amount of any credit given for the item to its customer’s account or obtain refund from its customer, whether or not it is able to return the item, if by its midnight deadline or within a longer reasonable time after it learns the facts it returns the item or sends notification of the facts. If the return or notice is delayed beyond the bank’s midnight deadline or a longer reasonable time after it learns the facts, the bank may revoke the settlement, charge-back the credit or obtain a refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge-back and obtain refund terminate if and when a settlement for the item received by the bank is or becomes final.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":256876,"text":"A collecting bank returns an item when it is sent or delivered to the bank’s customer or transferor or pursuant to its instructions.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":256877,"text":"A depositary bank that is also the payor may charge-back the amount of an item to its customer’s account or obtain refund in accordance with the section governing return of an item received by a payor bank for credit on its books (§ 8.4-301).","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":256878,"text":"The right to charge-back is not affected by:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"d1"},"4":{"id":256879,"text":"previous use of a credit given for the item; or","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"5":{"id":256880,"text":"failure by any bank to exercise ordinary care with respect to the item but any bank so failing remains liable.","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"e"},"6":{"id":256881,"text":"A failure to charge-back or claim refund does not affect other rights of the bank against the customer or any other party.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d2","next_prefix":"f"},"7":{"id":256882,"text":"If credit is given in dollars as the equivalent of the value of an item payable in a foreign money the dollar amount of any charge-back or refund shall be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-212\/","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":[{"id":58497,"section_number":"8.4-301","catch_line":"Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank","order_by":null,"url":"\/8.4-301\/"}],"permalink":{"id":283113,"object_type":"law","relational_id":71273,"identifier":"8.4-212","token":"8.4\/2\/8.4-212","url":"\/8.4-212\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-212\/","token":"8.4\/2\/8.4-212","dublin_core":{"Title":"Right of charge-back or refund; liability of collecting banks; return of item","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-212","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> If a collecting bank<\/span> has made provisional settlement<\/span> with its customer for an item and fails by reason of dishonor, suspension of payments by a bank or otherwise to receive a settlement<\/span> for the item which is or becomes final, the bank may revoke the settlement<\/span> given by it, charge-back the amount of any credit given for the item to its customer’s account or obtain refund from its customer, whether or not it is able to return the item, if by its midnight deadline or within a longer reasonable time after it learns the facts<\/span> it returns the item or sends notification of the facts<\/span>. If the return or notice is delayed beyond the bank’s midnight deadline or a longer reasonable time after it learns the facts<\/span>, the bank may revoke the settlement<\/span>, charge-back the credit or obtain a refund from its customer, but it is liable for any loss resulting from the delay. These rights to revoke, charge-back and obtain refund terminate if and when a settlement<\/span> for the item received by the bank is or becomes final. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A collecting bank<\/span> returns an item when it is sent or delivered to the bank’s customer or transferor or pursuant to its instructions. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A depositary bank<\/span> that is also the payor may charge-back the amount of an item to its customer’s account or obtain refund in accordance with the section governing return of an item received by a payor bank<\/span> for credit on its books (§ 8.4-301<\/a>). <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> The right to charge-back is not affected by: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> previous use of a credit given for the item; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> failure by any bank to exercise ordinary care with respect to the item but any bank so failing remains liable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> A failure to charge-back or claim refund does not affect other rights of the bank against the customer or any other party<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> If credit is given in dollars as the equivalent of the value of an item payable in a foreign money the dollar amount of any charge-back or refund shall be calculated on the basis of the bank-offered spot rate for the foreign money prevailing on the day when the person entitled to the charge-back or refund learns that it will not receive payment in ordinary course. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRIGHT OF CHARGE-BACK OR REFUND; LIABILITY OF COLLECTING BANKS; RETURN OF ITEM\n(\u00a7 8.4-212)\n\na. If a collecting bank has made provisional settlement with its customer for an\nitem and fails by reason of dishonor, suspension of payments by a bank or\notherwise to receive a settlement for the item which is or becomes final, the\nbank may revoke the settlement given by it, charge-back the amount of any credit\ngiven for the item to its customer’s account or obtain refund from its\ncustomer, whether or not it is able to return the item, if by its midnight\ndeadline or within a longer reasonable time after it learns the facts it returns\nthe item or sends notification of the facts. If the return or notice is delayed\nbeyond the bank’s midnight deadline or a longer reasonable time after it\nlearns the facts, the bank may revoke the settlement, charge-back the credit or\nobtain a refund from its customer, but it is liable for any loss resulting from\nthe delay. These rights to revoke, charge-back and obtain refund terminate if\nand when a settlement for the item received by the bank is or becomes final.\n\nb. A collecting bank returns an item when it is sent or delivered to the\nbank’s customer or transferor or pursuant to its instructions.\n\nc. A depositary bank that is also the payor may charge-back the amount of an\nitem to its customer’s account or obtain refund in accordance with the\nsection governing return of an item received by a payor bank for credit on its\nbooks (§ 8.4-301).\n\nd. The right to charge-back is not affected by:\n\n 1. previous use of a credit given for the item; or\n\n 2. failure by any bank to exercise ordinary care with respect to the item but\n any bank so failing remains liable.\n\ne. A failure to charge-back or claim refund does not affect other rights of the\nbank against the customer or any other party.\n\nf. If credit is given in dollars as the equivalent of the value of an item\npayable in a foreign money the dollar amount of any charge-back or refund shall\nbe calculated on the basis of the bank-offered spot rate for the foreign money\nprevailing on the day when the person entitled to the charge-back or refund\nlearns that it will not receive payment in ordinary course.\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}}