{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-401.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-401.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-401.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-401.html"}],"law_id":69237,"edition_id":1,"section_id":69237,"structure_id":13333,"section_number":"8.4-401","catch_line":"When bank may charge customer’s account","history":"1964, c. 219; 1992, c. 693.","full_text":"a\n\nA bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and the bank.b\n\nA customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.c\n\nA bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in § 8.4-403 (b) for stop-payment orders, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in § 8.4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under § 8.4-402.d\n\nA bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:1\n\nthe original terms of the altered item; or2\n\nthe terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.","order_by":null,"text":{"0":{"id":250510,"text":"A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and the bank.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":250511,"text":"A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":250512,"text":"A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in § 8.4-403 (b) for stop-payment orders, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in § 8.4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under § 8.4-402.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":250513,"text":"A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"d1"},"4":{"id":250514,"text":"the original terms of the altered 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":250515,"text":"the terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1"}},"ancestry":[{"id":13333,"edition_id":1,"name":"Relationship Between Payor Bank and Its Customer","identifier":"4","label":"part","depth":2,"order_by":1,"parent_id":12768,"metadata":{},"date_created":"2026-06-26 03:44:39","date_modified":"2026-06-26 03:44:39","permalink":{"id":283139,"object_type":"structure","relational_id":13333,"identifier":"4","token":"8.4\/4","url":"\/8.4\/4\/","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":69237,"structure_id":13333,"section_number":"8.4-401","catch_line":"When bank may charge customer's account","url":"\/8.4-401\/","token":"8.4\/4\/8.4-401","metadata":false},{"id":54315,"structure_id":13333,"section_number":"8.4-402","catch_line":"Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account","url":"\/8.4-402\/","token":"8.4\/4\/8.4-402","metadata":false},{"id":67226,"structure_id":13333,"section_number":"8.4-403","catch_line":"Customer's right to stop payment; burden of proof of loss","url":"\/8.4-403\/","token":"8.4\/4\/8.4-403","metadata":false},{"id":86835,"structure_id":13333,"section_number":"8.4-404","catch_line":"Bank not obligated to pay check more than six months old","url":"\/8.4-404\/","token":"8.4\/4\/8.4-404","metadata":false},{"id":78330,"structure_id":13333,"section_number":"8.4-405","catch_line":"Death or incompetence of customer","url":"\/8.4-405\/","token":"8.4\/4\/8.4-405","metadata":false},{"id":56628,"structure_id":13333,"section_number":"8.4-406","catch_line":"Customer's duty to discover and report unauthorized signature or alteration","url":"\/8.4-406\/","token":"8.4\/4\/8.4-406","metadata":false},{"id":57675,"structure_id":13333,"section_number":"8.4-407","catch_line":"Payor bank's right to subrogation on improper payment","url":"\/8.4-407\/","token":"8.4\/4\/8.4-407","metadata":false}],"next_section":{"id":54315,"structure_id":13333,"section_number":"8.4-402","catch_line":"Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account","url":"\/8.4-402\/","token":"8.4\/4\/8.4-402","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-401\/","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":[{"id":78239,"section_number":"8.3A-113","catch_line":"Date of instrument","order_by":null,"url":"\/8.3A-113\/"}],"refers_to":[{"id":82797,"section_number":"8.4-303","catch_line":"When items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified","order_by":null,"url":"\/8.4-303\/"},{"id":67226,"section_number":"8.4-403","catch_line":"Customer's right to stop payment; burden of proof of loss","order_by":null,"url":"\/8.4-403\/"}],"permalink":{"id":283141,"object_type":"law","relational_id":69237,"identifier":"8.4-401","token":"8.4\/4\/8.4-401","url":"\/8.4-401\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-401\/","token":"8.4\/4\/8.4-401","dublin_core":{"Title":"When bank may charge customer’s account","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-401","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A bank<\/span> may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and the bank<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A bank<\/span> may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank<\/span> of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in § 8.4-403<\/a> (b) for stop-payment orders<\/span>, and must be received at such time and in such manner as to afford the bank<\/span> a reasonable opportunity to act on it before the bank<\/span> takes any action with respect to the check described in § 8.4-303<\/a>. If a bank<\/span> charges against the account of a customer a check before the date stated in the notice of postdating, the bank<\/span> is liable for damages<\/span> for the loss resulting from its act. The loss may include damages<\/span> for dishonor of subsequent items under § 8.4-402<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> A bank<\/span> that in good faith makes payment to a holder may charge the indicated account of its customer according to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the original terms of the altered item; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the terms of the completed item, even though the bank<\/span> knows the item has been completed unless the bank<\/span> has notice that the completion was improper. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nWHEN BANK MAY CHARGE CUSTOMER’S ACCOUNT (\u00a7 8.4-401)\n\na. A bank may charge against the account of a customer an item that is properly\npayable from that account even though the charge creates an overdraft. An item\nis properly payable if it is authorized by the customer and is in accordance\nwith any agreement between the customer and the bank.\n\nb. A customer is not liable for the amount of an overdraft if the customer\nneither signed the item nor benefited from the proceeds of the item.\n\nc. A bank may charge against the account of a customer a check that is otherwise\nproperly payable from the account, even though payment was made before the date\nof the check, unless the customer has given notice to the bank of the postdating\ndescribing the check with reasonable certainty. The notice is effective for the\nperiod stated in § 8.4-403 (b) for stop-payment orders, and must be\nreceived at such time and in such manner as to afford the bank a reasonable\nopportunity to act on it before the bank takes any action with respect to the\ncheck described in § 8.4-303. If a bank charges against the account of a\ncustomer a check before the date stated in the notice of postdating, the bank is\nliable for damages for the loss resulting from its act. The loss may include\ndamages for dishonor of subsequent items under § 8.4-402.\n\nd. A bank that in good faith makes payment to a holder may charge the indicated\naccount of its customer according to:\n\n 1. the original terms of the altered item; or\n\n 2. the terms of the completed item, even though the bank knows the item has\n been completed unless the bank has notice that the completion was improper.\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}}