{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-406.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-406.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-406.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-406.html"}],"law_id":60722,"edition_id":1,"section_id":60722,"structure_id":15774,"section_number":"8.4A-406","catch_line":"Payment by originator to beneficiary; discharge of underlying obligation","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, the originator of a funds transfer pays the beneficiary of the originator’s payment order (i) at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer and (ii) in an amount equal to the amount of the order accepted by the beneficiary’s bank, but not more than the amount of the originator’s order.b\n\nIf payment under subsection (a) of this section is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless (i) the payment under subsection (a) of this section was made by a means prohibited by the contract of the beneficiary with respect to the obligation, (ii) the beneficiary, within a reasonable time after receiving notice of receipt of the order by the beneficiary’s bank, notified the originator of the beneficiary’s refusal of the payment, (iii) funds with respect to the order were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and (iv) the beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract. If payment by the originator does not result in discharge under this section, the originator is subrogated to the rights of the beneficiary to receive payment from the beneficiary’s bank under subsection (a) of § 8.4A-404.c\n\nFor the purpose of determining whether discharge of an obligation occurs under subsection (b) of this section, if the beneficiary’s bank accepts a payment order in an amount equal to the amount of the originator’s payment order less charges of one or more receiving banks in the funds transfer, payment to the beneficiary is deemed to be in the amount of the originator’s order unless upon demand by the beneficiary the originator does not pay the beneficiary the amount of the deducted charges.d\n\nRights of the originator or of the beneficiary of a funds transfer under this section may be varied only by agreement of the originator and the beneficiary.","order_by":null,"text":{"0":{"id":221974,"text":"Subject to subsection (e) of § 8.4A-211 and subsections (d) and (e) of § 8.4A-405, the originator of a funds transfer pays the beneficiary of the originator’s payment order (i) at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer and (ii) in an amount equal to the amount of the order accepted by the beneficiary’s bank, but not more than the amount of the originator’s order.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":221975,"text":"If payment under subsection (a) of this section is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless (i) the payment under subsection (a) of this section was made by a means prohibited by the contract of the beneficiary with respect to the obligation, (ii) the beneficiary, within a reasonable time after receiving notice of receipt of the order by the beneficiary’s bank, notified the originator of the beneficiary’s refusal of the payment, (iii) funds with respect to the order were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and (iv) the beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract. If payment by the originator does not result in discharge under this section, the originator is subrogated to the rights of the beneficiary to receive payment from the beneficiary’s bank under subsection (a) of § 8.4A-404.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":221976,"text":"For the purpose of determining whether discharge of an obligation occurs under subsection (b) of this section, if the beneficiary’s bank accepts a payment order in an amount equal to the amount of the originator’s payment order less charges of one or more receiving banks in the funds transfer, payment to the beneficiary is deemed to be in the amount of the originator’s order unless upon demand by the beneficiary the originator does not pay the beneficiary the amount of the deducted charges.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":221977,"text":"Rights of the originator or of the beneficiary of a funds transfer under this section may be varied only by agreement of the originator and the beneficiary.","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":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-406\/","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":74613,"section_number":"8.4-211.1","catch_line":"Medium and time of settlement by bank","order_by":null,"url":"\/8.4-211.1\/"},{"id":76749,"section_number":"8.4A-105","catch_line":"Other definitions","order_by":null,"url":"\/8.4A-105\/"},{"id":77247,"section_number":"8.4A-405","catch_line":"Payment by beneficiary's bank to beneficiary","order_by":null,"url":"\/8.4A-405\/"}],"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":283317,"object_type":"law","relational_id":60722,"identifier":"8.4A-406","token":"8.4A\/4\/8.4A-406","url":"\/8.4A-406\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-406\/","token":"8.4A\/4\/8.4A-406","dublin_core":{"Title":"Payment by originator to beneficiary; discharge of underlying obligation","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-406","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>, the originator<\/span> of a funds transfer<\/span> pays the beneficiary of the originator<\/span>’s payment order<\/span> (i) at the time a payment order<\/span> for the benefit of the beneficiary is accepted by the beneficiary’s bank in the funds transfer<\/span> and (ii) in an amount equal to the amount of the order<\/span> accepted by the beneficiary’s bank, but not more than the amount of the originator<\/span>’s order<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If payment under subsection (a) of this section is made to satisfy an obligation, the obligation is discharged to the same extent discharge would result from payment to the beneficiary of the same amount in money, unless (i) the payment under subsection (a) of this section was made by a means prohibited by the contract<\/span> of the beneficiary with respect to the obligation, (ii) the beneficiary, within a reasonable time after receiving notice of receipt of the order<\/span> by the beneficiary’s bank, notified the originator<\/span> of the beneficiary’s refusal of the payment, (iii) funds with respect to the order<\/span> were not withdrawn by the beneficiary or applied to a debt of the beneficiary, and (iv) the beneficiary would suffer a loss that could reasonably have been avoided if payment had been made by a means complying with the contract<\/span>. If payment by the originator<\/span> does not result in discharge under this section, the originator<\/span> is subrogated to the rights of the beneficiary to receive payment from the beneficiary’s bank under subsection (a) of § 8.4A-404<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> For the purpose of determining whether discharge of an obligation occurs under subsection (b) of this section, if the beneficiary’s bank accepts a payment order<\/span> in an amount equal to the amount of the originator<\/span>’s payment order<\/span> less charges of one or more receiving banks in the funds transfer<\/span>, payment to the beneficiary is deemed to be in the amount of the originator<\/span>’s order<\/span> unless upon demand by the beneficiary the originator<\/span> does not pay the beneficiary the amount of the deducted charges. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Rights of the originator<\/span> or of the beneficiary of a funds transfer<\/span> under this section may be varied only by agreement of the originator<\/span> and the beneficiary. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPAYMENT BY ORIGINATOR TO BENEFICIARY; DISCHARGE OF UNDERLYING OBLIGATION (\u00a7\n8.4A-406)\n\na. Subject to subsection (e) of § 8.4A-211 and subsections (d) and (e) of\n§ 8.4A-405, the originator of a funds transfer pays the beneficiary of the\noriginator’s payment order (i) at the time a payment order for the benefit\nof the beneficiary is accepted by the beneficiary’s bank in the funds\ntransfer and (ii) in an amount equal to the amount of the order accepted by the\nbeneficiary’s bank, but not more than the amount of the originator’s\norder.\n\nb. If payment under subsection (a) of this section is made to satisfy an\nobligation, the obligation is discharged to the same extent discharge would\nresult from payment to the beneficiary of the same amount in money, unless (i)\nthe payment under subsection (a) of this section was made by a means prohibited\nby the contract of the beneficiary with respect to the obligation, (ii) the\nbeneficiary, within a reasonable time after receiving notice of receipt of the\norder by the beneficiary’s bank, notified the originator of the\nbeneficiary’s refusal of the payment, (iii) funds with respect to the\norder were not withdrawn by the beneficiary or applied to a debt of the\nbeneficiary, and (iv) the beneficiary would suffer a loss that could reasonably\nhave been avoided if payment had been made by a means complying with the\ncontract. If payment by the originator does not result in discharge under this\nsection, the originator is subrogated to the rights of the beneficiary to\nreceive payment from the beneficiary’s bank under subsection (a) of §\n8.4A-404.\n\nc. For the purpose of determining whether discharge of an obligation occurs\nunder subsection (b) of this section, if the beneficiary’s bank accepts a\npayment order in an amount equal to the amount of the originator’s payment\norder less charges of one or more receiving banks in the funds transfer, payment\nto the beneficiary is deemed to be in the amount of the originator’s order\nunless upon demand by the beneficiary the originator does not pay the\nbeneficiary the amount of the deducted charges.\n\nd. Rights of the originator or of the beneficiary of a funds transfer under this\nsection may be varied only by agreement of the originator and the beneficiary.\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}}