{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-404.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-404.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-404.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-404.html"}],"law_id":73296,"edition_id":1,"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","history":"1990, c. 9.","full_text":"a\n\nSubject to subsection (e) of § 8.4A-211, and subsections (d) and (e) of § 8.4A-405, if a beneficiary’s bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may receive damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.b\n\nIf a payment order accepted by the beneficiary’s bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. No other damages are recoverable. Reasonable attorney’s fees are also recoverable if demand for interest is made and refused before an action is brought on the claim.c\n\nThe right of a beneficiary to receive payment and damages as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer.","order_by":null,"text":{"0":{"id":263763,"text":"Subject to subsection (e) of § 8.4A-211, and subsections (d) and (e) of § 8.4A-405, if a beneficiary’s bank accepts a payment order, the bank is obliged to pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages as a result of nonpayment, the beneficiary may receive damages resulting from the refusal to pay to the extent the bank had notice of the damages, unless the bank proves that it did not pay because of a reasonable doubt concerning the right of the beneficiary to payment.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":263764,"text":"If a payment order accepted by the beneficiary’s bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order before midnight of the next funds-transfer business day following the payment date. If the payment order does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order from the day notice should have been given until the day the beneficiary learned of receipt of the payment order by the bank. No other damages are recoverable. Reasonable attorney’s fees are also recoverable if demand for interest is made and refused before an action is brought on the claim.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":263765,"text":"The right of a beneficiary to receive payment and damages as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-404\/","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":77247,"section_number":"8.4A-405","catch_line":"Payment by beneficiary's bank to beneficiary","order_by":null,"url":"\/8.4A-405\/"},{"id":79909,"section_number":"8.4A-501","catch_line":"Variation by agreement and effect of funds-transfer system rule","order_by":null,"url":"\/8.4A-501\/"}],"refers_to":[{"id":85898,"section_number":"8.4A-211","catch_line":"Cancellation and amendment of payment order","order_by":null,"url":"\/8.4A-211\/"},{"id":77247,"section_number":"8.4A-405","catch_line":"Payment by beneficiary's bank to beneficiary","order_by":null,"url":"\/8.4A-405\/"}],"permalink":{"id":283309,"object_type":"law","relational_id":73296,"identifier":"8.4A-404","token":"8.4A\/4\/8.4A-404","url":"\/8.4A-404\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-404\/","token":"8.4A\/4\/8.4A-404","dublin_core":{"Title":"Obligation of beneficiary’s bank to pay and give notice to beneficiary","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-404","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Subject to subsection (e) of § 8.4A-211<\/a>, and subsections (d) and (e) of § 8.4A-405<\/a>, if a beneficiary’s bank accepts a payment order<\/span>, the bank is obliged to pay the amount of the order<\/span> to the beneficiary of the order<\/span>. Payment is due on the payment date of the order<\/span>, but if acceptance occurs on the payment date after the close of the funds-transfer business day of the bank, payment is due on the next funds-transfer business day. If the bank refuses to pay after demand by the beneficiary and receipt of notice of particular circumstances that will give rise to consequential damages<\/span> as a result of nonpayment, the beneficiary may receive damages<\/span> resulting from the refusal to pay to the extent the bank had notice of the damages<\/span>, unless the bank proves that it did not pay because of a reasonable doubt<\/span> concerning the right of the beneficiary to payment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If a payment order<\/span> accepted by the beneficiary’s bank instructs payment to an account of the beneficiary, the bank is obliged to notify the beneficiary of receipt of the order<\/span> before midnight of the next funds-transfer business day following the payment date. If the payment order<\/span> does not instruct payment to an account of the beneficiary, the bank is required to notify the beneficiary only if notice is required by the order<\/span>. Notice may be given by first class mail or any other means reasonable in the circumstances. If the bank fails to give the required notice, the bank is obliged to pay interest to the beneficiary on the amount of the payment order<\/span> from the day notice should have been given until the day the beneficiary learned of receipt of the payment order<\/span> by the bank. No other damages<\/span> are recoverable. Reasonable attorney’s fees are also recoverable if demand for interest is made and refused before an action is brought on the claim. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> The right of a beneficiary to receive payment and damages<\/span> as stated in subsection (a) of this section may not be varied by agreement or a funds-transfer system rule. The right of a beneficiary to be notified as stated in subsection (b) of this section may be varied by agreement of the beneficiary or by a funds-transfer system rule if the beneficiary is notified of the rule before initiation of the funds transfer<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nOBLIGATION OF BENEFICIARY’S BANK TO PAY AND GIVE NOTICE TO BENEFICIARY (\u00a7\n8.4A-404)\n\na. Subject to subsection (e) of § 8.4A-211, and subsections (d) and (e) of\n§ 8.4A-405, if a beneficiary’s bank accepts a payment order, the bank\nis obliged to pay the amount of the order to the beneficiary of the order.\nPayment is due on the payment date of the order, but if acceptance occurs on the\npayment date after the close of the funds-transfer business day of the bank,\npayment is due on the next funds-transfer business day. If the bank refuses to\npay after demand by the beneficiary and receipt of notice of particular\ncircumstances that will give rise to consequential damages as a result of\nnonpayment, the beneficiary may receive damages resulting from the refusal to\npay to the extent the bank had notice of the damages, unless the bank proves\nthat it did not pay because of a reasonable doubt concerning the right of the\nbeneficiary to payment.\n\nb. If a payment order accepted by the beneficiary’s bank instructs payment\nto an account of the beneficiary, the bank is obliged to notify the beneficiary\nof receipt of the order before midnight of the next funds-transfer business day\nfollowing the payment date. If the payment order does not instruct payment to an\naccount of the beneficiary, the bank is required to notify the beneficiary only\nif notice is required by the order. Notice may be given by first class mail or\nany other means reasonable in the circumstances. If the bank fails to give the\nrequired notice, the bank is obliged to pay interest to the beneficiary on the\namount of the payment order from the day notice should have been given until the\nday the beneficiary learned of receipt of the payment order by the bank. No\nother damages are recoverable. Reasonable attorney’s fees are also\nrecoverable if demand for interest is made and refused before an action is\nbrought on the claim.\n\nc. The right of a beneficiary to receive payment and damages as stated in\nsubsection (a) of this section may not be varied by agreement or a\nfunds-transfer system rule. The right of a beneficiary to be notified as stated\nin subsection (b) of this section may be varied by agreement of the beneficiary\nor by a funds-transfer system rule if the beneficiary is notified of the rule\nbefore initiation of the funds transfer.\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}}