{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-202.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-202.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-202.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-202.html"}],"law_id":81942,"edition_id":1,"section_id":81942,"structure_id":14106,"section_number":"8.4A-202","catch_line":"Authorized and verified payment orders","history":"1990, c. 9; 2024, c. 652.","full_text":"a\n\nA payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency.b\n\nIf a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if (i) the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and (ii) the bank proves that it accepted the payment order in good faith and in compliance with the bank’s obligations under the security procedure and any agreement or instruction of the customer, evidenced by a record, restricting acceptance of payment orders issued in the name of the customer. The bank is not required to follow an instruction that violates an agreement with the customer, evidenced by a record, or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order is accepted.c\n\nCommercial reasonableness of a security procedure is a question of law to be determined by considering the wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated. A security procedure is deemed to be commercially reasonable if (i) the security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer, and (ii) the customer expressly agreed in a record to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the bank’s obligations under the security procedure chosen by the customer.d\n\nThe term “sender” in this title includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under subsection (a) of this section, or it is effective as the order of the customer under subsection (b) of this section.e\n\nThis section applies to amendments and cancellations of payment orders to the same extent it applies to payment orders.f\n\nExcept as provided in this section and in subdivision (a) (1) of § 8.4A-203, rights and obligations arising under this section or § 8.4A-203 may not be varied by agreement.","order_by":null,"text":{"0":{"id":293593,"text":"A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":293594,"text":"If a bank and its customer have agreed that the authenticity of payment orders issued to the bank in the name of the customer as sender will be verified pursuant to a security procedure, a payment order received by the receiving bank is effective as the order of the customer, whether or not authorized, if (i) the security procedure is a commercially reasonable method of providing security against unauthorized payment orders, and (ii) the bank proves that it accepted the payment order in good faith and in compliance with the bank’s obligations under the security procedure and any agreement or instruction of the customer, evidenced by a record, restricting acceptance of payment orders issued in the name of the customer. The bank is not required to follow an instruction that violates an agreement with the customer, evidenced by a record, or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order is accepted.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":293595,"text":"Commercial reasonableness of a security procedure is a question of law to be determined by considering the wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated. A security procedure is deemed to be commercially reasonable if (i) the security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer, and (ii) the customer expressly agreed in a record to be bound by any payment order, whether or not authorized, issued in its name and accepted by the bank in compliance with the bank’s obligations under the security procedure chosen by the customer.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":293596,"text":"The term “sender” in this title includes the customer in whose name a payment order is issued if the order is the authorized order of the customer under subsection (a) of this section, or it is effective as the order of the customer under subsection (b) of this section.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":293597,"text":"This section applies to amendments and cancellations of payment orders to the same extent it applies to payment orders.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"5":{"id":293598,"text":"Except as provided in this section and in subdivision (a) (1) of § 8.4A-203, rights and obligations arising under this section or § 8.4A-203 may not be varied by agreement.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e"}},"ancestry":[{"id":14106,"edition_id":1,"name":"Issue and Acceptance of Payment Order","identifier":"2","label":"part","depth":2,"order_by":1,"parent_id":13362,"metadata":{},"date_created":"2026-06-26 03:46:53","date_modified":"2026-06-26 03:46:53","permalink":{"id":283223,"object_type":"structure","relational_id":14106,"identifier":"2","token":"8.4A\/2","url":"\/8.4A\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13362,"edition_id":1,"name":"Commercial Code \u2014 Funds Transfers","identifier":"8.4A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:42","date_modified":"2026-06-26 03:44:42","permalink":{"id":283187,"object_type":"structure","relational_id":13362,"identifier":"8.4A","token":"8.4A","url":"\/8.4A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72906,"structure_id":14106,"section_number":"8.4A-201","catch_line":"Security procedure","url":"\/8.4A-201\/","token":"8.4A\/2\/8.4A-201","metadata":false},{"id":81942,"structure_id":14106,"section_number":"8.4A-202","catch_line":"Authorized and verified payment orders","url":"\/8.4A-202\/","token":"8.4A\/2\/8.4A-202","metadata":false},{"id":68248,"structure_id":14106,"section_number":"8.4A-203","catch_line":"Unenforceability of certain verified payment orders","url":"\/8.4A-203\/","token":"8.4A\/2\/8.4A-203","metadata":false},{"id":78010,"structure_id":14106,"section_number":"8.4A-204","catch_line":"Refund of payment and duty of customer to report with respect to unauthorized payment order","url":"\/8.4A-204\/","token":"8.4A\/2\/8.4A-204","metadata":false},{"id":77755,"structure_id":14106,"section_number":"8.4A-205","catch_line":"Erroneous payment orders","url":"\/8.4A-205\/","token":"8.4A\/2\/8.4A-205","metadata":false},{"id":64984,"structure_id":14106,"section_number":"8.4A-206","catch_line":"Transmission of payment order through funds-transfer or other communication system","url":"\/8.4A-206\/","token":"8.4A\/2\/8.4A-206","metadata":false},{"id":59923,"structure_id":14106,"section_number":"8.4A-207","catch_line":"Misdescription of beneficiary","url":"\/8.4A-207\/","token":"8.4A\/2\/8.4A-207","metadata":false},{"id":65335,"structure_id":14106,"section_number":"8.4A-208","catch_line":"Misdescription of intermediary bank or beneficiary's bank","url":"\/8.4A-208\/","token":"8.4A\/2\/8.4A-208","metadata":false},{"id":78930,"structure_id":14106,"section_number":"8.4A-209","catch_line":"Acceptance of payment order","url":"\/8.4A-209\/","token":"8.4A\/2\/8.4A-209","metadata":false},{"id":55237,"structure_id":14106,"section_number":"8.4A-210","catch_line":"Rejection of payment order","url":"\/8.4A-210\/","token":"8.4A\/2\/8.4A-210","metadata":false},{"id":85898,"structure_id":14106,"section_number":"8.4A-211","catch_line":"Cancellation and amendment of payment order","url":"\/8.4A-211\/","token":"8.4A\/2\/8.4A-211","metadata":false},{"id":69041,"structure_id":14106,"section_number":"8.4A-212","catch_line":"Liability and duty of receiving bank regarding unaccepted payment order","url":"\/8.4A-212\/","token":"8.4A\/2\/8.4A-212","metadata":false}],"previous_section":{"id":72906,"structure_id":14106,"section_number":"8.4A-201","catch_line":"Security procedure","url":"\/8.4A-201\/","token":"8.4A\/2\/8.4A-201","metadata":false},"next_section":{"id":68248,"structure_id":14106,"section_number":"8.4A-203","catch_line":"Unenforceability of certain verified payment orders","url":"\/8.4A-203\/","token":"8.4A\/2\/8.4A-203","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-202\/","history_text":"

This law was first created in 1990. The record of its establishment is cataloged in chapter 9 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 1990 \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 2024, chapter 652<\/a>.<\/p>","references":[{"id":68248,"section_number":"8.4A-203","catch_line":"Unenforceability of certain verified payment orders","order_by":null,"url":"\/8.4A-203\/"},{"id":78010,"section_number":"8.4A-204","catch_line":"Refund of payment and duty of customer to report with respect to unauthorized payment order","order_by":null,"url":"\/8.4A-204\/"}],"refers_to":[{"id":68248,"section_number":"8.4A-203","catch_line":"Unenforceability of certain verified payment orders","order_by":null,"url":"\/8.4A-203\/"}],"permalink":{"id":283229,"object_type":"law","relational_id":81942,"identifier":"8.4A-202","token":"8.4A\/2\/8.4A-202","url":"\/8.4A-202\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-202\/","token":"8.4A\/2\/8.4A-202","dublin_core":{"Title":"Authorized and verified payment orders","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-202","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A payment order<\/span> received by the receiving bank is the authorized order<\/span> of the person identified as sender<\/span> if that person authorized the order<\/span> or is otherwise bound by it under the law<\/span> of agency. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If a bank and its customer have agreed that the authenticity of payment orders<\/span> issued to the bank in the name of the customer as sender<\/span> will be verified pursuant to a security procedure, a payment order<\/span> received by the receiving bank is effective as the order<\/span> of the customer, whether or not authorized, if (i) the security procedure is a commercially reasonable method of providing security against unauthorized payment orders<\/span>, and (ii) the bank proves that it accepted the payment order<\/span> in good faith and in compliance with the bank’s obligations under the security procedure and any agreement or instruction of the customer, evidenced by a record, restricting acceptance of payment orders<\/span> issued in the name of the customer. The bank is not required to follow an instruction that violates an agreement with the customer, evidenced by a record, or notice of which is not received at a time and in a manner affording the bank a reasonable opportunity to act on it before the payment order<\/span> is accepted. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Commercial reasonableness of a security procedure is a question of law<\/span> to be determined by considering the wishes of the customer expressed to the bank, the circumstances of the customer known to the bank, including the size, type, and frequency of payment orders<\/span> normally issued by the customer to the bank, alternative security procedures offered to the customer, and security procedures in general use by customers and receiving banks similarly situated. A security procedure is deemed to be commercially reasonable if (i) the security procedure was chosen by the customer after the bank offered, and the customer refused, a security procedure that was commercially reasonable for that customer, and (ii) the customer expressly agreed in a record to be bound by any payment order<\/span>, whether or not authorized, issued in its name and accepted by the bank in compliance with the bank’s obligations under the security procedure chosen by the customer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> The term “sender<\/span>” in this title includes the customer in whose name a payment order<\/span> is issued if the order<\/span> is the authorized order<\/span> of the customer under subsection (a) of this section, or it is effective as the order<\/span> of the customer under subsection (b) of this section. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> This section applies to amendments and cancellations of payment orders<\/span> to the same extent it applies to payment orders<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Except as provided in this section and in subdivision (a) (1) of § 8.4A-203<\/a>, rights and obligations arising under this section or § 8.4A-203<\/a> may not be varied by agreement. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAUTHORIZED AND VERIFIED PAYMENT ORDERS (\u00a7 8.4A-202)\n\na. A payment order received by the receiving bank is the authorized order of the\nperson identified as sender if that person authorized the order or is otherwise\nbound by it under the law of agency.\n\nb. If a bank and its customer have agreed that the authenticity of payment\norders issued to the bank in the name of the customer as sender will be verified\npursuant to a security procedure, a payment order received by the receiving bank\nis effective as the order of the customer, whether or not authorized, if (i) the\nsecurity procedure is a commercially reasonable method of providing security\nagainst unauthorized payment orders, and (ii) the bank proves that it accepted\nthe payment order in good faith and in compliance with the bank’s\nobligations under the security procedure and any agreement or instruction of the\ncustomer, evidenced by a record, restricting acceptance of payment orders issued\nin the name of the customer. The bank is not required to follow an instruction\nthat violates an agreement with the customer, evidenced by a record, or notice\nof which is not received at a time and in a manner affording the bank a\nreasonable opportunity to act on it before the payment order is accepted.\n\nc. Commercial reasonableness of a security procedure is a question of law to be\ndetermined by considering the wishes of the customer expressed to the bank, the\ncircumstances of the customer known to the bank, including the size, type, and\nfrequency of payment orders normally issued by the customer to the bank,\nalternative security procedures offered to the customer, and security procedures\nin general use by customers and receiving banks similarly situated. A security\nprocedure is deemed to be commercially reasonable if (i) the security procedure\nwas chosen by the customer after the bank offered, and the customer refused, a\nsecurity procedure that was commercially reasonable for that customer, and (ii)\nthe customer expressly agreed in a record to be bound by any payment order,\nwhether or not authorized, issued in its name and accepted by the bank in\ncompliance with the bank’s obligations under the security procedure chosen\nby the customer.\n\nd. The term “sender” in this title includes the customer in whose\nname a payment order is issued if the order is the authorized order of the\ncustomer under subsection (a) of this section, or it is effective as the order\nof the customer under subsection (b) of this section.\n\ne. This section applies to amendments and cancellations of payment orders to the\nsame extent it applies to payment orders.\n\nf. Except as provided in this section and in subdivision (a) (1) of §\n8.4A-203, rights and obligations arising under this section or § 8.4A-203\nmay not be varied by agreement.\n\nHISTORY: 1990, c. 9; 2024, c. 652.","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}}