{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-403.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-403.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-403.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-403.html"}],"law_id":80646,"edition_id":1,"section_id":80646,"structure_id":15774,"section_number":"8.4A-403","catch_line":"Payment by sender to receiving bank","history":"1990, c. 9.","full_text":"a\n\nPayment of the sender’s obligation under \u00a7 8.4A-402 to pay the receiving bank occurs as follows:1\n\nIf the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system.2\n\nIf the sender is a bank and the sender (i) credited an account of the receiving bank with the sender, or (ii) caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.3\n\nIf the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account.b\n\nIf the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement when settlement is complete in accordance with the rules of the system. The obligation of the sender to pay the amount of a payment order transmitted through the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender’s obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order transmitted to the sender by the receiving bank through the funds-transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system. The aggregate balance is determined after the right of setoff stated in the second sentence of this subsection has been exercised.c\n\nIf two banks transmit payment orders to each other under an agreement that settlement of the obligations of each bank to the other under § 8.4A-402 will be made at the end of the day or other period, the total amount owed with respect to all orders transmitted by one bank shall be set off against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other.d\n\nIn a case not covered by subsection (a) of this section, the time when payment of the sender’s obligation under subsection (b) or (c) of § 8.4A-402 occurs is governed by applicable principles of law that determine when an obligation is satisfied.","order_by":null,"text":{"0":{"id":289027,"text":"Payment of the sender’s obligation under \u00a7 8.4A-402 to pay the receiving bank occurs as follows:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":289028,"text":"If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a Federal Reserve Bank or through a funds-transfer system.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":289029,"text":"If the sender is a bank and the sender (i) credited an account of the receiving bank with the sender, or (ii) caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":289030,"text":"If the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"b"},"4":{"id":289031,"text":"If the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement when settlement is complete in accordance with the rules of the system. The obligation of the sender to pay the amount of a payment order transmitted through the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender’s obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order transmitted to the sender by the receiving bank through the funds-transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system. The aggregate balance is determined after the right of setoff stated in the second sentence of this subsection has been exercised.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a3","next_prefix":"c"},"5":{"id":289032,"text":"If two banks transmit payment orders to each other under an agreement that settlement of the obligations of each bank to the other under § 8.4A-402 will be made at the end of the day or other period, the total amount owed with respect to all orders transmitted by one bank shall be set off against the total amount owed with respect to all orders transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"6":{"id":289033,"text":"In a case not covered by subsection (a) of this section, the time when payment of the sender’s obligation under subsection (b) or (c) of § 8.4A-402 occurs is governed by applicable principles of law that determine when an obligation is satisfied.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c"}},"ancestry":[{"id":15774,"edition_id":1,"name":"Payment","identifier":"4","label":"part","depth":2,"order_by":1,"parent_id":13362,"metadata":{},"date_created":"2026-06-26 03:59:21","date_modified":"2026-06-26 03:59:21","permalink":{"id":283295,"object_type":"structure","relational_id":15774,"identifier":"4","token":"8.4A\/4","url":"\/8.4A\/4\/","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":63521,"structure_id":15774,"section_number":"8.4A-401","catch_line":"Payment date","url":"\/8.4A-401\/","token":"8.4A\/4\/8.4A-401","metadata":false},{"id":81579,"structure_id":15774,"section_number":"8.4A-402","catch_line":"Obligation of sender to pay receiving bank","url":"\/8.4A-402\/","token":"8.4A\/4\/8.4A-402","metadata":false},{"id":80646,"structure_id":15774,"section_number":"8.4A-403","catch_line":"Payment by sender to receiving bank","url":"\/8.4A-403\/","token":"8.4A\/4\/8.4A-403","metadata":false},{"id":73296,"structure_id":15774,"section_number":"8.4A-404","catch_line":"Obligation of beneficiary's bank to pay and give notice to beneficiary","url":"\/8.4A-404\/","token":"8.4A\/4\/8.4A-404","metadata":false},{"id":77247,"structure_id":15774,"section_number":"8.4A-405","catch_line":"Payment by beneficiary's bank to beneficiary","url":"\/8.4A-405\/","token":"8.4A\/4\/8.4A-405","metadata":false},{"id":60722,"structure_id":15774,"section_number":"8.4A-406","catch_line":"Payment by originator to beneficiary; discharge of underlying obligation","url":"\/8.4A-406\/","token":"8.4A\/4\/8.4A-406","metadata":false}],"previous_section":{"id":81579,"structure_id":15774,"section_number":"8.4A-402","catch_line":"Obligation of sender to pay receiving bank","url":"\/8.4A-402\/","token":"8.4A\/4\/8.4A-402","metadata":false},"next_section":{"id":73296,"structure_id":15774,"section_number":"8.4A-404","catch_line":"Obligation of beneficiary's bank to pay and give notice to beneficiary","url":"\/8.4A-404\/","token":"8.4A\/4\/8.4A-404","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-403\/","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":76749,"section_number":"8.4A-105","catch_line":"Other definitions","order_by":null,"url":"\/8.4A-105\/"},{"id":78930,"section_number":"8.4A-209","catch_line":"Acceptance of payment order","order_by":null,"url":"\/8.4A-209\/"}],"refers_to":[{"id":81579,"section_number":"8.4A-402","catch_line":"Obligation of sender to pay receiving bank","order_by":null,"url":"\/8.4A-402\/"}],"permalink":{"id":283305,"object_type":"law","relational_id":80646,"identifier":"8.4A-403","token":"8.4A\/4\/8.4A-403","url":"\/8.4A-403\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-403\/","token":"8.4A\/4\/8.4A-403","dublin_core":{"Title":"Payment by sender to receiving bank","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-403","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Payment of the sender’s obligation under \u00a7 8.4A-402<\/a> to pay the receiving bank occurs as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> If the sender is a bank, payment occurs when the receiving bank receives final settlement<\/span> of the obligation through a Federal Reserve Bank or through a funds-transfer system. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> If the sender is a bank and the sender (i) credited an account of the receiving bank with the sender, or (ii) caused an account of the receiving bank in another bank to be credited, payment occurs when the credit is withdrawn or, if not withdrawn, at midnight of the day on which the credit is withdrawable and the receiving bank learns of that fact<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If the receiving bank debits an account of the sender with the receiving bank, payment occurs when the debit is made to the extent the debit is covered by a withdrawable credit balance in the account. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If the sender and receiving bank are members of a funds-transfer system that nets obligations multilaterally among participants, the receiving bank receives final settlement<\/span> when settlement<\/span> is complete in accordance with the rules of the system. The obligation of the sender to pay the amount of a payment order<\/span> transmitted through the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against the sender’s obligation the right of the sender to receive payment from the receiving bank of the amount of any other payment order<\/span> transmitted to the sender by the receiving bank through the funds-transfer system. The aggregate balance of obligations owed by each sender to each receiving bank in the funds-transfer system may be satisfied, to the extent permitted by the rules of the system, by setting off and applying against that balance the aggregate balance of obligations owed to the sender by other members of the system. The aggregate balance is determined after the right of setoff stated in the second sentence of this subsection has been exercised. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If two banks transmit payment orders<\/span> to each other under an agreement that settlement<\/span> of the obligations of each bank to the other under § 8.4A-402<\/a> will be made at the end of the day or other period, the total amount owed with respect to all orders<\/span> transmitted by one bank shall be set off against the total amount owed with respect to all orders<\/span> transmitted by the other bank. To the extent of the setoff, each bank has made payment to the other. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> In a case not covered by subsection (a) of this section, the time when payment of the sender’s obligation under subsection (b) or (c) of § 8.4A-402<\/a> occurs is governed by applicable principles of law<\/span> that determine when an obligation is satisfied. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPAYMENT BY SENDER TO RECEIVING BANK (\u00a7 8.4A-403)\n\na. Payment of the sender’s obligation under \u00a7 8.4A-402 to pay the\nreceiving bank occurs as follows:\n\n 1. If the sender is a bank, payment occurs when the receiving bank receives\n final settlement of the obligation through a Federal Reserve Bank or through a\n funds-transfer system.\n\n 2. If the sender is a bank and the sender (i) credited an account of the\n receiving bank with the sender, or (ii) caused an account of the receiving\n bank in another bank to be credited, payment occurs when the credit is\n withdrawn or, if not withdrawn, at midnight of the day on which the credit is\n withdrawable and the receiving bank learns of that fact.\n\n 3. If the receiving bank debits an account of the sender with the receiving\n bank, payment occurs when the debit is made to the extent the debit is covered\n by a withdrawable credit balance in the account.\n\nb. If the sender and receiving bank are members of a funds-transfer system that\nnets obligations multilaterally among participants, the receiving bank receives\nfinal settlement when settlement is complete in accordance with the rules of the\nsystem. The obligation of the sender to pay the amount of a payment order\ntransmitted through the funds-transfer system may be satisfied, to the extent\npermitted by the rules of the system, by setting off and applying against the\nsender’s obligation the right of the sender to receive payment from the\nreceiving bank of the amount of any other payment order transmitted to the\nsender by the receiving bank through the funds-transfer system. The aggregate\nbalance of obligations owed by each sender to each receiving bank in the\nfunds-transfer system may be satisfied, to the extent permitted by the rules of\nthe system, by setting off and applying against that balance the aggregate\nbalance of obligations owed to the sender by other members of the system. The\naggregate balance is determined after the right of setoff stated in the second\nsentence of this subsection has been exercised.\n\nc. If two banks transmit payment orders to each other under an agreement that\nsettlement of the obligations of each bank to the other under § 8.4A-402\nwill be made at the end of the day or other period, the total amount owed with\nrespect to all orders transmitted by one bank shall be set off against the total\namount owed with respect to all orders transmitted by the other bank. To the\nextent of the setoff, each bank has made payment to the other.\n\nd. In a case not covered by subsection (a) of this section, the time when\npayment of the sender’s obligation under subsection (b) or (c) of §\n8.4A-402 occurs is governed by applicable principles of law that determine when\nan obligation is satisfied.\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}}