{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-305.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-305.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-305.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-305.html"}],"law_id":75010,"edition_id":1,"section_id":75010,"structure_id":15670,"section_number":"8.4A-305","catch_line":"Liability for late or improper execution or failure to execute payment order","history":"1990, c. 9; 2024, c. 652.","full_text":"a\n\nIf a funds transfer is completed but execution of a payment order by the receiving bank in breach of § 8.4A-302 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in subsection (c) of this section, additional damages are not recoverable.b\n\nIf execution of a payment order by a receiving bank in breach of § 8.4A-302 results in (i) noncompletion of the funds transfer, (ii) failure to use an intermediary bank designated by the originator, or (iii) issuance of a payment order that does not comply with the terms of the payment order of the originator, the bank is liable to the originator for its expenses in the funds transfer and for incidental expenses and interest losses, to the extent not covered by subsection (a) of this section, resulting from the improper execution. Except as provided in subsection (c) of this section, additional damages are not recoverable.c\n\nIn addition to the amounts payable under subsections (a) and (b) of this section, damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record.d\n\nIf a receiving bank fails to execute a payment order it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record, but are not otherwise recoverable.e\n\nReasonable attorney’s fees are recoverable if demand for compensation under subsection (a) or (b) of this section is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under subsection (d) of this section, and the agreement does not provide for damages, reasonable attorney’s fees are recoverable if demand for compensation under subsection (d) of this section, is made and refused before an action is brought on the claim.f\n\nExcept as stated in this section, the liability of a receiving bank under subsections (a) and (b) of this section may not be varied by agreement.","order_by":null,"text":{"0":{"id":269441,"text":"If a funds transfer is completed but execution of a payment order by the receiving bank in breach of § 8.4A-302 results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator or the beneficiary of the funds transfer for the period of delay caused by the improper execution. Except as provided in subsection (c) of this section, additional damages are not recoverable.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":269442,"text":"If execution of a payment order by a receiving bank in breach of § 8.4A-302 results in (i) noncompletion of the funds transfer, (ii) failure to use an intermediary bank designated by the originator, or (iii) issuance of a payment order that does not comply with the terms of the payment order of the originator, the bank is liable to the originator for its expenses in the funds transfer and for incidental expenses and interest losses, to the extent not covered by subsection (a) of this section, resulting from the improper execution. Except as provided in subsection (c) of this section, additional damages are not recoverable.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":269443,"text":"In addition to the amounts payable under subsections (a) and (b) of this section, damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":269444,"text":"If a receiving bank fails to execute a payment order it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages, including consequential damages, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record, but are not otherwise recoverable.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":269445,"text":"Reasonable attorney’s fees are recoverable if demand for compensation under subsection (a) or (b) of this section is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under subsection (d) of this section, and the agreement does not provide for damages, reasonable attorney’s fees are recoverable if demand for compensation under subsection (d) of this section, is made and refused before an action is brought on the claim.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"f"},"5":{"id":269446,"text":"Except as stated in this section, the liability of a receiving bank under subsections (a) and (b) of this section 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":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":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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-305\/","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":false,"refers_to":[{"id":62619,"section_number":"8.4A-302","catch_line":"Obligations of receiving bank in execution of payment order","order_by":null,"url":"\/8.4A-302\/"}],"permalink":{"id":283291,"object_type":"law","relational_id":75010,"identifier":"8.4A-305","token":"8.4A\/3\/8.4A-305","url":"\/8.4A-305\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-305\/","token":"8.4A\/3\/8.4A-305","dublin_core":{"Title":"Liability for late or improper execution or failure to execute payment order","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-305","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> If a funds transfer<\/span> is completed but execution of a payment order<\/span> by the receiving bank in breach of § 8.4A-302<\/a> results in delay in payment to the beneficiary, the bank is obliged to pay interest to either the originator<\/span> or the beneficiary of the funds transfer<\/span> for the period of delay caused by the improper execution. Except as provided in subsection (c) of this section, additional damages<\/span> are not recoverable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If execution of a payment order<\/span> by a receiving bank in breach of § 8.4A-302<\/a> results in (i) noncompletion of the funds transfer<\/span>, (ii) failure to use an intermediary bank<\/span> designated by the originator<\/span>, or (iii) issuance of a payment order<\/span> that does not comply with the terms of the payment order<\/span> of the originator<\/span>, the bank is liable to the originator<\/span> for its expenses in the funds transfer<\/span> and for incidental expenses and interest losses, to the extent not covered by subsection (a) of this section, resulting from the improper execution. Except as provided in subsection (c) of this section, additional damages<\/span> are not recoverable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> In addition to the amounts payable under subsections (a) and (b) of this section, damages<\/span>, including consequential damages<\/span>, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> If a receiving bank fails to execute a payment order<\/span> it was obliged by express agreement to execute, the receiving bank is liable to the sender for its expenses in the transaction and for incidental expenses and interest losses resulting from the failure to execute. Additional damages<\/span>, including consequential damages<\/span>, are recoverable to the extent provided in an express agreement of the receiving bank, evidenced by a record, but are not otherwise recoverable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Reasonable attorney’s fees are recoverable if demand for compensation under subsection (a) or (b) of this section is made and refused before an action is brought on the claim. If a claim is made for breach of an agreement under subsection (d) of this section, and the agreement does not provide for damages<\/span>, reasonable attorney’s fees are recoverable if demand for compensation under subsection (d) of this section, is made and refused before an action is brought on the claim. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Except as stated in this section, the liability of a receiving bank under subsections (a) and (b) of this section may not be varied by agreement. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nLIABILITY FOR LATE OR IMPROPER EXECUTION OR FAILURE TO EXECUTE PAYMENT ORDER (\u00a7\n8.4A-305)\n\na. If a funds transfer is completed but execution of a payment order by the\nreceiving bank in breach of § 8.4A-302 results in delay in payment to the\nbeneficiary, the bank is obliged to pay interest to either the originator or the\nbeneficiary of the funds transfer for the period of delay caused by the improper\nexecution. Except as provided in subsection (c) of this section, additional\ndamages are not recoverable.\n\nb. If execution of a payment order by a receiving bank in breach of §\n8.4A-302 results in (i) noncompletion of the funds transfer, (ii) failure to use\nan intermediary bank designated by the originator, or (iii) issuance of a\npayment order that does not comply with the terms of the payment order of the\noriginator, the bank is liable to the originator for its expenses in the funds\ntransfer and for incidental expenses and interest losses, to the extent not\ncovered by subsection (a) of this section, resulting from the improper\nexecution. Except as provided in subsection (c) of this section, additional\ndamages are not recoverable.\n\nc. In addition to the amounts payable under subsections (a) and (b) of this\nsection, damages, including consequential damages, are recoverable to the extent\nprovided in an express agreement of the receiving bank, evidenced by a record.\n\nd. If a receiving bank fails to execute a payment order it was obliged by\nexpress agreement to execute, the receiving bank is liable to the sender for its\nexpenses in the transaction and for incidental expenses and interest losses\nresulting from the failure to execute. Additional damages, including\nconsequential damages, are recoverable to the extent provided in an express\nagreement of the receiving bank, evidenced by a record, but are not otherwise\nrecoverable.\n\ne. Reasonable attorney’s fees are recoverable if demand for compensation\nunder subsection (a) or (b) of this section is made and refused before an action\nis brought on the claim. If a claim is made for breach of an agreement under\nsubsection (d) of this section, and the agreement does not provide for damages,\nreasonable attorney’s fees are recoverable if demand for compensation\nunder subsection (d) of this section, is made and refused before an action is\nbrought on the claim.\n\nf. Except as stated in this section, the liability of a receiving bank under\nsubsections (a) and (b) of this section may 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}}