{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-407.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-407.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-407.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-407.html"}],"law_id":57675,"edition_id":1,"section_id":57675,"structure_id":13333,"section_number":"8.4-407","catch_line":"Payor bank’s right to subrogation on improper payment","history":"1964, c. 219; 1992, c. 693.","full_text":"If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights:\n\n1\n\nof any holder in due course on the item against the drawer or maker;2\n\nof the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose; and3\n\nof the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.","order_by":null,"text":{"0":{"id":211299,"text":"If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank is subrogated to the rights:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":211300,"text":"of any holder in due course on the item against the drawer or maker;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":211301,"text":"of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose; and","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":211302,"text":"of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2"}},"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}],"previous_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-407\/","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":false,"permalink":{"id":283165,"object_type":"law","relational_id":57675,"identifier":"8.4-407","token":"8.4\/4\/8.4-407","url":"\/8.4-407\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-407\/","token":"8.4\/4\/8.4-407","dublin_core":{"Title":"Payor bank’s right to subrogation on improper payment","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-407","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

If a payor bank<\/span> has paid an item over the order<\/span> of the drawer or maker to stop payment, or after an account has been closed or otherwise under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent necessary to prevent loss to the bank by reason of its payment of the item, the payor bank<\/span> is subrogated to the rights:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> of any holder in due course on the item against the drawer or maker; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> of the payee or any other holder of the item against the drawer or maker either on the item or under the transaction out of which the item arose; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPAYOR BANK’S RIGHT TO SUBROGATION ON IMPROPER PAYMENT (\u00a7 8.4-407)\n\nIf a payor bank has paid an item over the order of the drawer or maker to stop\npayment, or after an account has been closed or otherwise under circumstances\ngiving a basis for objection by the drawer or maker, to prevent unjust\nenrichment and only to the extent necessary to prevent loss to the bank by\nreason of its payment of the item, the payor bank is subrogated to the rights:\n\n1. of any holder in due course on the item against the drawer or maker;\n\n2. of the payee or any other holder of the item against the drawer or maker\neither on the item or under the transaction out of which the item arose; and\n\n3. of the drawer or maker against the payee or any other holder of the item with\nrespect to the transaction out of which the item arose.\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}}