{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-205.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-205.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-205.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-205.html"}],"law_id":77755,"edition_id":1,"section_id":77755,"structure_id":14106,"section_number":"8.4A-205","catch_line":"Erroneous payment orders","history":"1990, c. 9.","full_text":"a\n\nIf an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed payment in an amount greater than the amount intended by the sender, or (iii) was an erroneously transmitted duplicate of a payment order previously sent by the sender, the following rules apply:1\n\nIf the sender proves that the sender or a person acting on behalf of the sender pursuant to § 8.4A-206 complied with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obliged to pay the order to the extent stated in subdivisions (2) and (3) of this subsection.2\n\nIf the funds transfer is completed on the basis of an erroneous payment order described in clause (i) or (iii) of this subsection, the sender is not obliged to pay the order and the receiving bank is entitled to recover from the beneficiary any amount paid to the beneficiary to the extent allowed by the law governing mistake and restitution.3\n\nIf the funds transfer is completed on the basis of a payment order described in clause (ii) of this subsection, the sender is not obliged to pay the order to the extent the amount received by the beneficiary is greater than the amount intended by the sender. In that case, the receiving bank is entitled to recover from the beneficiary the excess amount received to the extent allowed by the law governing mistake and restitution.b\n\nIf (i) the sender of an erroneous payment order described in subsection (a) of this section is not obliged to pay all or part of the order, and (ii) the sender receives notification from the receiving bank that the order was accepted by the bank or that the sender’s account was debited with respect to the order, the sender has a duty to exercise ordinary care, on the basis of information available to the sender, to discover the error with respect to the order and to advise the bank of the relevant facts within a reasonable time, not exceeding ninety days, after the bank’s notification was received by the sender. If the bank proves that the sender failed to perform that duty, the sender is liable to the bank for the loss the bank proves it incurred as a result of the failure, but the liability of the sender may not exceed the amount of the sender’s order.c\n\nThis section applies to amendments to payment orders to the same extent it applies to payment orders.","order_by":null,"text":{"0":{"id":278878,"text":"If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed payment in an amount greater than the amount intended by the sender, or (iii) was an erroneously transmitted duplicate of a payment order previously sent by the sender, the following rules apply:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":278879,"text":"If the sender proves that the sender or a person acting on behalf of the sender pursuant to § 8.4A-206 complied with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obliged to pay the order to the extent stated in subdivisions (2) and (3) of this subsection.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":278880,"text":"If the funds transfer is completed on the basis of an erroneous payment order described in clause (i) or (iii) of this subsection, the sender is not obliged to pay the order and the receiving bank is entitled to recover from the beneficiary any amount paid to the beneficiary to the extent allowed by the law governing mistake and restitution.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":278881,"text":"If the funds transfer is completed on the basis of a payment order described in clause (ii) of this subsection, the sender is not obliged to pay the order to the extent the amount received by the beneficiary is greater than the amount intended by the sender. In that case, the receiving bank is entitled to recover from the beneficiary the excess amount received to the extent allowed by the law governing mistake and restitution.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"b"},"4":{"id":278882,"text":"If (i) the sender of an erroneous payment order described in subsection (a) of this section is not obliged to pay all or part of the order, and (ii) the sender receives notification from the receiving bank that the order was accepted by the bank or that the sender’s account was debited with respect to the order, the sender has a duty to exercise ordinary care, on the basis of information available to the sender, to discover the error with respect to the order and to advise the bank of the relevant facts within a reasonable time, not exceeding ninety days, after the bank’s notification was received by the sender. If the bank proves that the sender failed to perform that duty, the sender is liable to the bank for the loss the bank proves it incurred as a result of the failure, but the liability of the sender may not exceed the amount of the sender’s order.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a3","next_prefix":"c"},"5":{"id":278883,"text":"This section applies to amendments to payment orders to the same extent it applies to payment orders.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-205\/","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.<\/p>","references":[{"id":81579,"section_number":"8.4A-402","catch_line":"Obligation of sender to pay receiving bank","order_by":null,"url":"\/8.4A-402\/"}],"refers_to":[{"id":64984,"section_number":"8.4A-206","catch_line":"Transmission of payment order through funds-transfer or other communication system","order_by":null,"url":"\/8.4A-206\/"}],"permalink":{"id":283241,"object_type":"law","relational_id":77755,"identifier":"8.4A-205","token":"8.4A\/2\/8.4A-205","url":"\/8.4A-205\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-205\/","token":"8.4A\/2\/8.4A-205","dublin_core":{"Title":"Erroneous payment orders","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-205","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> If an accepted payment order<\/span> was transmitted pursuant to a security procedure for the detection of error and the payment order<\/span> (i) erroneously instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed payment in an amount greater than the amount intended by the sender, or (iii) was an erroneously transmitted duplicate of a payment order<\/span> previously sent by the sender, the following rules apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the sender proves that the sender or a person acting on behalf of the sender pursuant to § 8.4A-206<\/a> complied with the security procedure and that the error would have been detected if the receiving bank had also complied, the sender is not obliged to pay the order<\/span> to the extent stated in subdivisions (2) and (3) of this subsection. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the funds transfer<\/span> is completed on the basis of an erroneous payment order<\/span> described in clause (i) or (iii) of this subsection, the sender is not obliged to pay the order<\/span> and the receiving bank is entitled to recover from the beneficiary any amount paid to the beneficiary to the extent allowed by the law<\/span> governing mistake and restitution<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the funds transfer<\/span> is completed on the basis of a payment order<\/span> described in clause (ii) of this subsection, the sender is not obliged to pay the order<\/span> to the extent the amount received by the beneficiary is greater than the amount intended by the sender. In that case, the receiving bank is entitled to recover from the beneficiary the excess amount received to the extent allowed by the law<\/span> governing mistake and restitution<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If (i) the sender of an erroneous payment order<\/span> described in subsection (a) of this section is not obliged to pay all or part of the order<\/span>, and (ii) the sender receives notification from the receiving bank that the order<\/span> was accepted by the bank or that the sender’s account was debited with respect to the order<\/span>, the sender has a duty to exercise ordinary care, on the basis of information available to the sender, to discover the error with respect to the order<\/span> and to advise the bank of the relevant facts<\/span> within a reasonable time, not exceeding ninety days, after the bank’s notification was received by the sender. If the bank proves that the sender failed to perform that duty, the sender is liable to the bank for the loss the bank proves it incurred as a result of the failure, but the liability of the sender may not exceed the amount of the sender’s order<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> This section applies to amendments to payment orders<\/span> to the same extent it applies to payment orders<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nERRONEOUS PAYMENT ORDERS (\u00a7 8.4A-205)\n\na. If an accepted payment order was transmitted pursuant to a security procedure\nfor the detection of error and the payment order (i) erroneously instructed\npayment to a beneficiary not intended by the sender, (ii) erroneously instructed\npayment in an amount greater than the amount intended by the sender, or (iii)\nwas an erroneously transmitted duplicate of a payment order previously sent by\nthe sender, the following rules apply:\n\n 1. If the sender proves that the sender or a person acting on behalf of the\n sender pursuant to § 8.4A-206 complied with the security procedure and\n that the error would have been detected if the receiving bank had also\n complied, the sender is not obliged to pay the order to the extent stated in\n subdivisions (2) and (3) of this subsection.\n\n 2. If the funds transfer is completed on the basis of an erroneous payment\n order described in clause (i) or (iii) of this subsection, the sender is not\n obliged to pay the order and the receiving bank is entitled to recover from\n the beneficiary any amount paid to the beneficiary to the extent allowed by\n the law governing mistake and restitution.\n\n 3. If the funds transfer is completed on the basis of a payment order\n described in clause (ii) of this subsection, the sender is not obliged to pay\n the order to the extent the amount received by the beneficiary is greater than\n the amount intended by the sender. In that case, the receiving bank is\n entitled to recover from the beneficiary the excess amount received to the\n extent allowed by the law governing mistake and restitution.\n\nb. If (i) the sender of an erroneous payment order described in subsection (a)\nof this section is not obliged to pay all or part of the order, and (ii) the\nsender receives notification from the receiving bank that the order was accepted\nby the bank or that the sender’s account was debited with respect to the\norder, the sender has a duty to exercise ordinary care, on the basis of\ninformation available to the sender, to discover the error with respect to the\norder and to advise the bank of the relevant facts within a reasonable time, not\nexceeding ninety days, after the bank’s notification was received by the\nsender. If the bank proves that the sender failed to perform that duty, the\nsender is liable to the bank for the loss the bank proves it incurred as a\nresult of the failure, but the liability of the sender may not exceed the amount\nof the sender’s order.\n\nc. This section applies to amendments to payment orders to the same extent it\napplies to payment orders.\n\nHISTORY: 1990, c. 9.","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}}