{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-405.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-405.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-405.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-405.html"}],"law_id":77247,"edition_id":1,"section_id":77247,"structure_id":15774,"section_number":"8.4A-405","catch_line":"Payment by beneficiary’s bank to beneficiary","history":"1990, c. 9.","full_text":"a\n\nIf the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under subsection (a) of § 8.4A-404 occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully applies the credit to a debt of the beneficiary, or (iii) funds with respect to the order are otherwise made available to the beneficiary by the bank.b\n\nIf the beneficiary’s bank does not credit an account of the beneficiary of a payment order, the time when payment of the bank’s obligation under subsection (a) of § 8.4A-404 occurs is governed by principles of law that determine when an obligation is satisfied.c\n\nExcept as stated in subsections (d) and (e) of this section, if the beneficiary’s bank pays the beneficiary of a payment order under a condition to payment or agreement of the beneficiary giving the bank the right to recover payment from the beneficiary if the bank does not receive payment of the order, the condition to payment or agreement is not enforceable.d\n\nA funds-transfer system rule may provide that payments made to beneficiaries of funds transfers made through the system are provisional until receipt of payment by the beneficiary’s bank of the payment order is accepted. A beneficiary’s bank that makes a payment that is provisional under the rule is entitled to refund from the beneficiary if (i) the rule requires that both the beneficiary and the originator be given notice of the provisional nature of the payment before the funds transfer is initiated, (ii) the beneficiary, the beneficiary’s bank, and the originator’s bank agreed to be bound by the rule, and (iii) the beneficiary’s bank did not receive payment of the payment order that it accepted. If the beneficiary is obliged to refund payment to the beneficiary’s bank, acceptance of the payment order by the beneficiary’s bank is nullified and no payment by the originator of the funds transfer to the beneficiary occurs under § 8.4A-406.e\n\nThis subsection applies to a funds transfer that includes a payment order transmitted over a funds-transfer system that (i) nets obligations multilaterally among participants, and (ii) has in effect a loss-sharing agreement among participants for the purpose of providing funds necessary to complete settlement of the obligations of one or more participants that do not meet their settlement obligations. If the beneficiary’s bank in the funds transfer accepts a payment order and the system fails to complete settlement pursuant to its rules with respect to any payment order in the funds transfer, (i) the acceptance by the beneficiary’s bank is nullified and no person has any right or obligation based on the acceptance, (ii) the beneficiary’s bank is entitled to recover payment from the beneficiary, (iii) no payment by the originator to the beneficiary occurs under § 8.4A-406 and (iv) subject to subsection (e) of § 8.4A-402, each sender in the funds transfer is excused from its obligation to pay its payment order under subsection (c) of § 8.4A-402 because the funds transfer has not been completed.","order_by":null,"text":{"0":{"id":277088,"text":"If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under subsection (a) of § 8.4A-404 occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully applies the credit to a debt of the beneficiary, or (iii) funds with respect to the order are otherwise made available to the beneficiary by the bank.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":277089,"text":"If the beneficiary’s bank does not credit an account of the beneficiary of a payment order, the time when payment of the bank’s obligation under subsection (a) of § 8.4A-404 occurs is governed by principles of law that determine when an obligation is satisfied.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":277090,"text":"Except as stated in subsections (d) and (e) of this section, if the beneficiary’s bank pays the beneficiary of a payment order under a condition to payment or agreement of the beneficiary giving the bank the right to recover payment from the beneficiary if the bank does not receive payment of the order, the condition to payment or agreement is not enforceable.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":277091,"text":"A funds-transfer system rule may provide that payments made to beneficiaries of funds transfers made through the system are provisional until receipt of payment by the beneficiary’s bank of the payment order is accepted. A beneficiary’s bank that makes a payment that is provisional under the rule is entitled to refund from the beneficiary if (i) the rule requires that both the beneficiary and the originator be given notice of the provisional nature of the payment before the funds transfer is initiated, (ii) the beneficiary, the beneficiary’s bank, and the originator’s bank agreed to be bound by the rule, and (iii) the beneficiary’s bank did not receive payment of the payment order that it accepted. If the beneficiary is obliged to refund payment to the beneficiary’s bank, acceptance of the payment order by the beneficiary’s bank is nullified and no payment by the originator of the funds transfer to the beneficiary occurs under § 8.4A-406.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"4":{"id":277092,"text":"This subsection applies to a funds transfer that includes a payment order transmitted over a funds-transfer system that (i) nets obligations multilaterally among participants, and (ii) has in effect a loss-sharing agreement among participants for the purpose of providing funds necessary to complete settlement of the obligations of one or more participants that do not meet their settlement obligations. If the beneficiary’s bank in the funds transfer accepts a payment order and the system fails to complete settlement pursuant to its rules with respect to any payment order in the funds transfer, (i) the acceptance by the beneficiary’s bank is nullified and no person has any right or obligation based on the acceptance, (ii) the beneficiary’s bank is entitled to recover payment from the beneficiary, (iii) no payment by the originator to the beneficiary occurs under § 8.4A-406 and (iv) subject to subsection (e) of § 8.4A-402, each sender in the funds transfer is excused from its obligation to pay its payment order under subsection (c) of § 8.4A-402 because the funds transfer has not been completed.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-405\/","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\/"},{"id":73296,"section_number":"8.4A-404","catch_line":"Obligation of beneficiary's bank to pay and give notice to beneficiary","order_by":null,"url":"\/8.4A-404\/"},{"id":60722,"section_number":"8.4A-406","catch_line":"Payment by originator to beneficiary; discharge of underlying obligation","order_by":null,"url":"\/8.4A-406\/"},{"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":81579,"section_number":"8.4A-402","catch_line":"Obligation of sender to pay receiving bank","order_by":null,"url":"\/8.4A-402\/"},{"id":73296,"section_number":"8.4A-404","catch_line":"Obligation of beneficiary's bank to pay and give notice to beneficiary","order_by":null,"url":"\/8.4A-404\/"},{"id":60722,"section_number":"8.4A-406","catch_line":"Payment by originator to beneficiary; discharge of underlying obligation","order_by":null,"url":"\/8.4A-406\/"}],"permalink":{"id":283313,"object_type":"law","relational_id":77247,"identifier":"8.4A-405","token":"8.4A\/4\/8.4A-405","url":"\/8.4A-405\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-405\/","token":"8.4A\/4\/8.4A-405","dublin_core":{"Title":"Payment by beneficiary’s bank to beneficiary","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-405","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> If the beneficiary’s bank credits an account of the beneficiary of a payment order<\/span>, payment of the bank’s obligation under subsection (a) of § 8.4A-404<\/a> occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully applies the credit to a debt of the beneficiary, or (iii) funds with respect to the order<\/span> are otherwise made available to the beneficiary by the bank. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If the beneficiary’s bank does not credit an account of the beneficiary of a payment order<\/span>, the time when payment of the bank’s obligation under subsection (a) of § 8.4A-404<\/a> occurs is governed by principles of law<\/span> that determine when an obligation is satisfied. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Except as stated in subsections (d) and (e) of this section, if the beneficiary’s bank pays the beneficiary of a payment order<\/span> under a condition to payment or agreement of the beneficiary giving the bank the right to recover payment from the beneficiary if the bank does not receive payment of the order<\/span>, the condition to payment or agreement is not enforceable. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> A funds-transfer system rule may provide that payments made to beneficiaries of funds transfers<\/span> made through the system are provisional until receipt of payment by the beneficiary’s bank of the payment order<\/span> is accepted. A beneficiary’s bank that makes a payment that is provisional under the rule is entitled to refund from the beneficiary if (i) the rule requires that both the beneficiary and the originator<\/span> be given notice of the provisional nature of the payment before the funds transfer<\/span> is initiated, (ii) the beneficiary, the beneficiary’s bank, and the originator<\/span>’s bank agreed to be bound by the rule, and (iii) the beneficiary’s bank did not receive payment of the payment order<\/span> that it accepted. If the beneficiary is obliged to refund payment to the beneficiary’s bank, acceptance of the payment order<\/span> by the beneficiary’s bank is nullified and no payment by the originator<\/span> of the funds transfer<\/span> to the beneficiary occurs under § 8.4A-406<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> This subsection applies to a funds transfer<\/span> that includes a payment order<\/span> transmitted over a funds-transfer system that (i) nets obligations multilaterally among participants, and (ii) has in effect a loss-sharing agreement among participants for the purpose of providing funds necessary to complete settlement<\/span> of the obligations of one or more participants that do not meet their settlement<\/span> obligations. If the beneficiary’s bank in the funds transfer<\/span> accepts a payment order<\/span> and the system fails to complete settlement<\/span> pursuant to its rules with respect to any payment order<\/span> in the funds transfer<\/span>, (i) the acceptance by the beneficiary’s bank is nullified and no person has any right or obligation based on the acceptance, (ii) the beneficiary’s bank is entitled to recover payment from the beneficiary, (iii) no payment by the originator<\/span> to the beneficiary occurs under § 8.4A-406<\/a> and (iv) subject to subsection (e) of § 8.4A-402<\/a>, each sender in the funds transfer<\/span> is excused from its obligation to pay its payment order<\/span> under subsection (c) of § 8.4A-402<\/a> because the funds transfer<\/span> has not been completed. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPAYMENT BY BENEFICIARY’S BANK TO BENEFICIARY (\u00a7 8.4A-405)\n\na. If the beneficiary’s bank credits an account of the beneficiary of a\npayment order, payment of the bank’s obligation under subsection (a) of\n§ 8.4A-404 occurs when and to the extent (i) the beneficiary is notified of\nthe right to withdraw the credit, (ii) the bank lawfully applies the credit to a\ndebt of the beneficiary, or (iii) funds with respect to the order are otherwise\nmade available to the beneficiary by the bank.\n\nb. If the beneficiary’s bank does not credit an account of the beneficiary\nof a payment order, the time when payment of the bank’s obligation under\nsubsection (a) of § 8.4A-404 occurs is governed by principles of law that\ndetermine when an obligation is satisfied.\n\nc. Except as stated in subsections (d) and (e) of this section, if the\nbeneficiary’s bank pays the beneficiary of a payment order under a\ncondition to payment or agreement of the beneficiary giving the bank the right\nto recover payment from the beneficiary if the bank does not receive payment of\nthe order, the condition to payment or agreement is not enforceable.\n\nd. A funds-transfer system rule may provide that payments made to beneficiaries\nof funds transfers made through the system are provisional until receipt of\npayment by the beneficiary’s bank of the payment order is accepted. A\nbeneficiary’s bank that makes a payment that is provisional under the rule\nis entitled to refund from the beneficiary if (i) the rule requires that both\nthe beneficiary and the originator be given notice of the provisional nature of\nthe payment before the funds transfer is initiated, (ii) the beneficiary, the\nbeneficiary’s bank, and the originator’s bank agreed to be bound by\nthe rule, and (iii) the beneficiary’s bank did not receive payment of the\npayment order that it accepted. If the beneficiary is obliged to refund payment\nto the beneficiary’s bank, acceptance of the payment order by the\nbeneficiary’s bank is nullified and no payment by the originator of the\nfunds transfer to the beneficiary occurs under § 8.4A-406.\n\ne. This subsection applies to a funds transfer that includes a payment order\ntransmitted over a funds-transfer system that (i) nets obligations\nmultilaterally among participants, and (ii) has in effect a loss-sharing\nagreement among participants for the purpose of providing funds necessary to\ncomplete settlement of the obligations of one or more participants that do not\nmeet their settlement obligations. If the beneficiary’s bank in the funds\ntransfer accepts a payment order and the system fails to complete settlement\npursuant to its rules with respect to any payment order in the funds transfer,\n(i) the acceptance by the beneficiary’s bank is nullified and no person\nhas any right or obligation based on the acceptance, (ii) the\nbeneficiary’s bank is entitled to recover payment from the beneficiary,\n(iii) no payment by the originator to the beneficiary occurs under §\n8.4A-406 and (iv) subject to subsection (e) of § 8.4A-402, each sender in\nthe funds transfer is excused from its obligation to pay its payment order under\nsubsection (c) of § 8.4A-402 because the funds transfer has not been\ncompleted.\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}}