{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-302.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-302.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-302.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-302.html"}],"law_id":62619,"edition_id":1,"section_id":62619,"structure_id":15670,"section_number":"8.4A-302","catch_line":"Obligations of receiving bank in execution of payment order","history":"1990, c. 9.","full_text":"a\n\nExcept as provided in subsections (b) through (d) of this section, if the receiving bank accepts a payment order pursuant to subsection (a) of \u00a7 8.4A-209, the bank has the following obligations in executing the order:1\n\nThe receiving bank is obliged to issue, on the execution date, a payment order complying with the sender’s order and to follow the sender’s instructions concerning (i) any intermediary bank or funds-transfer system to be used in carrying out the funds transfer, or (ii) the means by which payment orders are to be transmitted in the funds transfer. If the originator’s bank issues a payment order to an intermediary bank, the originator’s bank is obliged to instruct the intermediary bank according to the instruction of the originator. An intermediary bank in the funds transfer is similarly bound by an instruction given to it by the sender of the payment order it accepts.2\n\nIf the sender’s instruction states that the funds transfer is to be carried out telephonically or by wire transfer or otherwise indicates that the funds transfer is to be carried out by the most expeditious means, the receiving bank is obliged to transmit its payment order by the most expeditious available means, and to instruct any intermediary bank accordingly. If a sender’s instruction states a payment date, the receiving bank is obliged to transmit its payment order at a time and by means reasonably necessary to allow payment to the beneficiary on the payment date or as soon thereafter as is feasible.b\n\nUnless otherwise instructed, a receiving bank executing a payment order may (i) use any funds-transfer system if use of that system is reasonable in the circumstances, and (ii) issue a payment order to the beneficiary’s bank or to an intermediary bank through which a payment order conforming to the sender’s order can expeditiously be issued to the beneficiary’s bank if the receiving bank exercises ordinary care in the selection of the intermediary bank. A receiving bank is not required to follow an instruction of the sender designating a funds-transfer system to be used in carrying out the funds transfer if the receiving bank, in good faith, determines that it is not feasible to follow the instruction or that following the instruction would unduly delay completion of the funds transfer.c\n\nUnless subdivision (a) (2) of this section applies or the receiving bank is otherwise instructed, the bank may execute a payment order by transmitting its payment order by first class mail or by any means reasonable in the circumstances. If the receiving bank is instructed to execute the sender’s order by transmitting its payment order by a particular means, the receiving bank may issue its payment order by the means stated or by any means as expeditious as the means stated.d\n\nUnless instructed by the sender, (i) the receiving bank may not obtain payment of its charges for services and expenses in connection with the execution of the sender’s order by issuing a payment order in an amount equal to the amount of the sender’s order less the amount of the charges, and (ii) may not instruct a subsequent receiving bank to obtain payment of its charges in the same manner.","order_by":null,"text":{"0":{"id":228309,"text":"Except as provided in subsections (b) through (d) of this section, if the receiving bank accepts a payment order pursuant to subsection (a) of \u00a7 8.4A-209, the bank has the following obligations in executing the order:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":228310,"text":"The receiving bank is obliged to issue, on the execution date, a payment order complying with the sender’s order and to follow the sender’s instructions concerning (i) any intermediary bank or funds-transfer system to be used in carrying out the funds transfer, or (ii) the means by which payment orders are to be transmitted in the funds transfer. If the originator’s bank issues a payment order to an intermediary bank, the originator’s bank is obliged to instruct the intermediary bank according to the instruction of the originator. An intermediary bank in the funds transfer is similarly bound by an instruction given to it by the sender of the payment order it accepts.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":228311,"text":"If the sender’s instruction states that the funds transfer is to be carried out telephonically or by wire transfer or otherwise indicates that the funds transfer is to be carried out by the most expeditious means, the receiving bank is obliged to transmit its payment order by the most expeditious available means, and to instruct any intermediary bank accordingly. If a sender’s instruction states a payment date, the receiving bank is obliged to transmit its payment order at a time and by means reasonably necessary to allow payment to the beneficiary on the payment date or as soon thereafter as is feasible.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"3":{"id":228312,"text":"Unless otherwise instructed, a receiving bank executing a payment order may (i) use any funds-transfer system if use of that system is reasonable in the circumstances, and (ii) issue a payment order to the beneficiary’s bank or to an intermediary bank through which a payment order conforming to the sender’s order can expeditiously be issued to the beneficiary’s bank if the receiving bank exercises ordinary care in the selection of the intermediary bank. A receiving bank is not required to follow an instruction of the sender designating a funds-transfer system to be used in carrying out the funds transfer if the receiving bank, in good faith, determines that it is not feasible to follow the instruction or that following the instruction would unduly delay completion of the funds transfer.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"c"},"4":{"id":228313,"text":"Unless subdivision (a) (2) of this section applies or the receiving bank is otherwise instructed, the bank may execute a payment order by transmitting its payment order by first class mail or by any means reasonable in the circumstances. If the receiving bank is instructed to execute the sender’s order by transmitting its payment order by a particular means, the receiving bank may issue its payment order by the means stated or by any means as expeditious as the means stated.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"5":{"id":228314,"text":"Unless instructed by the sender, (i) the receiving bank may not obtain payment of its charges for services and expenses in connection with the execution of the sender’s order by issuing a payment order in an amount equal to the amount of the sender’s order less the amount of the charges, and (ii) may not instruct a subsequent receiving bank to obtain payment of its charges in the same manner.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c"}},"ancestry":[{"id":15670,"edition_id":1,"name":"Execution of Sender's Payment Order by Receiving Bank","identifier":"3","label":"part","depth":2,"order_by":1,"parent_id":13362,"metadata":{},"date_created":"2026-06-26 03:57:39","date_modified":"2026-06-26 03:57:39","permalink":{"id":283273,"object_type":"structure","relational_id":15670,"identifier":"3","token":"8.4A\/3","url":"\/8.4A\/3\/","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":59952,"structure_id":15670,"section_number":"8.4A-301","catch_line":"Execution and execution date","url":"\/8.4A-301\/","token":"8.4A\/3\/8.4A-301","metadata":false},{"id":62619,"structure_id":15670,"section_number":"8.4A-302","catch_line":"Obligations of receiving bank in execution of payment order","url":"\/8.4A-302\/","token":"8.4A\/3\/8.4A-302","metadata":false},{"id":84794,"structure_id":15670,"section_number":"8.4A-303","catch_line":"Erroneous execution of payment order","url":"\/8.4A-303\/","token":"8.4A\/3\/8.4A-303","metadata":false},{"id":63931,"structure_id":15670,"section_number":"8.4A-304","catch_line":"Duty of sender to report erroneously executed payment order","url":"\/8.4A-304\/","token":"8.4A\/3\/8.4A-304","metadata":false},{"id":75010,"structure_id":15670,"section_number":"8.4A-305","catch_line":"Liability for late or improper execution or failure to execute payment order","url":"\/8.4A-305\/","token":"8.4A\/3\/8.4A-305","metadata":false}],"previous_section":{"id":59952,"structure_id":15670,"section_number":"8.4A-301","catch_line":"Execution and execution date","url":"\/8.4A-301\/","token":"8.4A\/3\/8.4A-301","metadata":false},"next_section":{"id":84794,"structure_id":15670,"section_number":"8.4A-303","catch_line":"Erroneous execution of payment order","url":"\/8.4A-303\/","token":"8.4A\/3\/8.4A-303","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-302\/","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":65335,"section_number":"8.4A-208","catch_line":"Misdescription of intermediary bank or beneficiary's bank","order_by":null,"url":"\/8.4A-208\/"},{"id":75010,"section_number":"8.4A-305","catch_line":"Liability for late or improper execution or failure to execute payment order","order_by":null,"url":"\/8.4A-305\/"}],"refers_to":[{"id":78930,"section_number":"8.4A-209","catch_line":"Acceptance of payment order","order_by":null,"url":"\/8.4A-209\/"}],"permalink":{"id":283279,"object_type":"law","relational_id":62619,"identifier":"8.4A-302","token":"8.4A\/3\/8.4A-302","url":"\/8.4A-302\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-302\/","token":"8.4A\/3\/8.4A-302","dublin_core":{"Title":"Obligations of receiving bank in execution of payment order","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-302","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Except as provided in subsections (b) through (d) of this section, if the receiving bank accepts a payment order<\/span> pursuant to subsection (a) of \u00a7 8.4A-209<\/a>, the bank has the following obligations in executing the order<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The receiving bank is obliged to issue<\/span>, on the execution date, a payment order<\/span> complying with the sender’s order<\/span> and to follow the sender’s instructions concerning (i) any intermediary bank<\/span> or funds-transfer system to be used in carrying out the funds transfer<\/span>, or (ii) the means by which payment orders<\/span> are to be transmitted in the funds transfer<\/span>. If the originator<\/span>’s bank issues<\/span> a payment order<\/span> to an intermediary bank<\/span>, the originator<\/span>’s bank is obliged to instruct the intermediary bank<\/span> according to the instruction of the originator<\/span>. An intermediary bank<\/span> in the funds transfer<\/span> is similarly bound by an instruction given to it by the sender of the payment order<\/span> it accepts. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the sender’s instruction states that the funds transfer<\/span> is to be carried out telephonically or by wire transfer or otherwise indicates that the funds transfer<\/span> is to be carried out by the most expeditious means, the receiving bank is obliged to transmit its payment order<\/span> by the most expeditious available means, and to instruct any intermediary bank<\/span> accordingly. If a sender’s instruction states a payment date, the receiving bank is obliged to transmit its payment order<\/span> at a time and by means reasonably necessary to allow payment to the beneficiary on the payment date or as soon thereafter as is feasible. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Unless otherwise instructed, a receiving bank executing a payment order<\/span> may (i) use any funds-transfer system if use of that system is reasonable in the circumstances, and (ii) issue<\/span> a payment order<\/span> to the beneficiary’s bank or to an intermediary bank<\/span> through which a payment order<\/span> conforming to the sender’s order<\/span> can expeditiously be issued to the beneficiary’s bank if the receiving bank exercises ordinary care in the selection of the intermediary bank<\/span>. A receiving bank is not required to follow an instruction of the sender designating a funds-transfer system to be used in carrying out the funds transfer<\/span> if the receiving bank, in good faith, determines that it is not feasible to follow the instruction or that following the instruction would unduly delay completion of the funds transfer<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Unless subdivision (a) (2) of this section applies or the receiving bank is otherwise instructed, the bank may execute a payment order<\/span> by transmitting its payment order<\/span> by first class mail or by any means reasonable in the circumstances. If the receiving bank is instructed to execute the sender’s order<\/span> by transmitting its payment order<\/span> by a particular means, the receiving bank may issue<\/span> its payment order<\/span> by the means stated or by any means as expeditious as the means stated. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Unless instructed by the sender, (i) the receiving bank may not obtain payment of its charges for services and expenses in connection with the execution of the sender’s order<\/span> by issuing a payment order<\/span> in an amount equal to the amount of the sender’s order<\/span> less the amount of the charges, and (ii) may not instruct a subsequent receiving bank to obtain payment of its charges in the same manner. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOBLIGATIONS OF RECEIVING BANK IN EXECUTION OF PAYMENT ORDER (\u00a7 8.4A-302)\n\na. Except as provided in subsections (b) through (d) of this section, if the\nreceiving bank accepts a payment order pursuant to subsection (a) of \u00a7\n8.4A-209, the bank has the following obligations in executing the order:\n\n 1. The receiving bank is obliged to issue, on the execution date, a payment\n order complying with the sender’s order and to follow the sender’s\n instructions concerning (i) any intermediary bank or funds-transfer system to\n be used in carrying out the funds transfer, or (ii) the means by which payment\n orders are to be transmitted in the funds transfer. If the originator’s\n bank issues a payment order to an intermediary bank, the originator’s\n bank is obliged to instruct the intermediary bank according to the instruction\n of the originator. An intermediary bank in the funds transfer is similarly\n bound by an instruction given to it by the sender of the payment order it\n accepts.\n\n 2. If the sender’s instruction states that the funds transfer is to be\n carried out telephonically or by wire transfer or otherwise indicates that the\n funds transfer is to be carried out by the most expeditious means, the\n receiving bank is obliged to transmit its payment order by the most\n expeditious available means, and to instruct any intermediary bank\n accordingly. If a sender’s instruction states a payment date, the\n receiving bank is obliged to transmit its payment order at a time and by means\n reasonably necessary to allow payment to the beneficiary on the payment date\n or as soon thereafter as is feasible.\n\nb. Unless otherwise instructed, a receiving bank executing a payment order may\n(i) use any funds-transfer system if use of that system is reasonable in the\ncircumstances, and (ii) issue a payment order to the beneficiary’s bank or\nto an intermediary bank through which a payment order conforming to the\nsender’s order can expeditiously be issued to the beneficiary’s bank\nif the receiving bank exercises ordinary care in the selection of the\nintermediary bank. A receiving bank is not required to follow an instruction of\nthe sender designating a funds-transfer system to be used in carrying out the\nfunds transfer if the receiving bank, in good faith, determines that it is not\nfeasible to follow the instruction or that following the instruction would\nunduly delay completion of the funds transfer.\n\nc. Unless subdivision (a) (2) of this section applies or the receiving bank is\notherwise instructed, the bank may execute a payment order by transmitting its\npayment order by first class mail or by any means reasonable in the\ncircumstances. If the receiving bank is instructed to execute the sender’s\norder by transmitting its payment order by a particular means, the receiving\nbank may issue its payment order by the means stated or by any means as\nexpeditious as the means stated.\n\nd. Unless instructed by the sender, (i) the receiving bank may not obtain\npayment of its charges for services and expenses in connection with the\nexecution of the sender’s order by issuing a payment order in an amount\nequal to the amount of the sender’s order less the amount of the charges,\nand (ii) may not instruct a subsequent receiving bank to obtain payment of its\ncharges in the same manner.\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}}