{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-502.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-502.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-502.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-502.html"}],"law_id":59560,"edition_id":1,"section_id":59560,"structure_id":15605,"section_number":"8.4A-502","catch_line":"Creditor process served on receiving bank; setoff by beneficiary’s bank","history":"1990, c. 9.","full_text":"a\n\nAs used in this section, “creditor process” means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account.b\n\nThis subsection applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights with respect to the creditor process, if the receiving bank accepts the payment order the balance in the authorized account is deemed to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.c\n\nIf a beneficiary’s bank has received a payment order for payment to the beneficiary’s account in the bank, the following rules apply:1\n\nThe bank may credit the beneficiary’s account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process served on the bank with respect to the account.2\n\nThe bank may credit the beneficiary’s account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.3\n\nIf creditor process with respect to the beneficiary’s account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order except for a reason unrelated to the service of process.d\n\nCreditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary’s bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act with respect to the process.","order_by":null,"text":{"0":{"id":218179,"text":"As used in this section, “creditor process” means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":218180,"text":"This subsection applies to creditor process with respect to an authorized account of the sender of a payment order if the creditor process is served on the receiving bank. For the purpose of determining rights with respect to the creditor process, if the receiving bank accepts the payment order the balance in the authorized account is deemed to be reduced by the amount of the payment order to the extent the bank did not otherwise receive payment of the order, unless the creditor process is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":218181,"text":"If a beneficiary’s bank has received a payment order for payment to the beneficiary’s account in the bank, the following rules apply:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"c1"},"3":{"id":218182,"text":"The bank may credit the beneficiary’s account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process served on the bank with respect to the account.","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"4":{"id":218183,"text":"The bank may credit the beneficiary’s account and allow withdrawal of the amount credited unless creditor process with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"c3"},"5":{"id":218184,"text":"If creditor process with respect to the beneficiary’s account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order except for a reason unrelated to the service of process.","type":"section","prefixes":["c","3"],"prefix":"3","entire_prefix":"c3","prefix_anchor":"c3","level":2,"prior_prefix":"c2","next_prefix":"d"},"6":{"id":218185,"text":"Creditor process with respect to a payment by the originator to the beneficiary pursuant to a funds transfer may be served only on the beneficiary’s bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process is not obliged to act with respect to the process.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c3"}},"ancestry":[{"id":15605,"edition_id":1,"name":"Miscellaneous Provisions","identifier":"5","label":"part","depth":2,"order_by":1,"parent_id":13362,"metadata":{},"date_created":"2026-06-26 03:56:47","date_modified":"2026-06-26 03:56:47","permalink":{"id":283321,"object_type":"structure","relational_id":15605,"identifier":"5","token":"8.4A\/5","url":"\/8.4A\/5\/","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":79909,"structure_id":15605,"section_number":"8.4A-501","catch_line":"Variation by agreement and effect of funds-transfer system rule","url":"\/8.4A-501\/","token":"8.4A\/5\/8.4A-501","metadata":false},{"id":59560,"structure_id":15605,"section_number":"8.4A-502","catch_line":"Creditor process served on receiving bank; setoff by beneficiary's bank","url":"\/8.4A-502\/","token":"8.4A\/5\/8.4A-502","metadata":false},{"id":86903,"structure_id":15605,"section_number":"8.4A-503","catch_line":"Injunction or restraining order with respect to funds transfer","url":"\/8.4A-503\/","token":"8.4A\/5\/8.4A-503","metadata":false},{"id":74780,"structure_id":15605,"section_number":"8.4A-504","catch_line":"Order in which items and payment orders may be charged to account; order of withdrawals from account","url":"\/8.4A-504\/","token":"8.4A\/5\/8.4A-504","metadata":false},{"id":73346,"structure_id":15605,"section_number":"8.4A-505","catch_line":"Preclusion of objection to debit of customer's account","url":"\/8.4A-505\/","token":"8.4A\/5\/8.4A-505","metadata":false},{"id":69858,"structure_id":15605,"section_number":"8.4A-506","catch_line":"Rate of interest","url":"\/8.4A-506\/","token":"8.4A\/5\/8.4A-506","metadata":false},{"id":64515,"structure_id":15605,"section_number":"8.4A-507","catch_line":"Choice of law","url":"\/8.4A-507\/","token":"8.4A\/5\/8.4A-507","metadata":false}],"previous_section":{"id":79909,"structure_id":15605,"section_number":"8.4A-501","catch_line":"Variation by agreement and effect of funds-transfer system rule","url":"\/8.4A-501\/","token":"8.4A\/5\/8.4A-501","metadata":false},"next_section":{"id":86903,"structure_id":15605,"section_number":"8.4A-503","catch_line":"Injunction or restraining order with respect to funds transfer","url":"\/8.4A-503\/","token":"8.4A\/5\/8.4A-503","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-502\/","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":false,"refers_to":false,"permalink":{"id":283327,"object_type":"law","relational_id":59560,"identifier":"8.4A-502","token":"8.4A\/5\/8.4A-502","url":"\/8.4A-502\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-502\/","token":"8.4A\/5\/8.4A-502","dublin_core":{"Title":"Creditor process served on receiving bank; setoff by beneficiary’s bank","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-502","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> As used in this section, “creditor process<\/span>” means levy<\/span>, attachment<\/span>, garnishment<\/span>, notice of lien<\/span>, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> This subsection applies to creditor process<\/span> with respect to an authorized account of the sender of a payment order<\/span> if the creditor process<\/span> is served on the receiving bank. For the purpose of determining rights with respect to the creditor process<\/span>, if the receiving bank accepts the payment order<\/span> the balance in the authorized account is deemed to be reduced by the amount of the payment order<\/span> to the extent the bank did not otherwise receive payment of the order<\/span>, unless the creditor process<\/span> is served at a time and in a manner affording the bank a reasonable opportunity to act on it before the bank accepts the payment order<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If a beneficiary’s bank has received a payment order<\/span> for payment to the beneficiary’s account in the bank, the following rules apply: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The bank may credit the beneficiary’s account. The amount credited may be set off against an obligation owed by the beneficiary to the bank or may be applied to satisfy creditor process<\/span> served on the bank with respect to the account. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The bank may credit the beneficiary’s account and allow withdrawal of the amount credited unless creditor process<\/span> with respect to the account is served at a time and in a manner affording the bank a reasonable opportunity to act to prevent withdrawal. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> If creditor process<\/span> with respect to the beneficiary’s account has been served and the bank has had a reasonable opportunity to act on it, the bank may not reject the payment order<\/span> except for a reason unrelated to the service of process<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> Creditor process<\/span> with respect to a payment by the originator<\/span> to the beneficiary pursuant to a funds transfer<\/span> may be served only on the beneficiary’s bank with respect to the debt owed by that bank to the beneficiary. Any other bank served with the creditor process<\/span> is not obliged to act with respect to the process. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCREDITOR PROCESS SERVED ON RECEIVING BANK; SETOFF BY BENEFICIARY’S BANK\n(\u00a7 8.4A-502)\n\na. As used in this section, “creditor process” means levy,\nattachment, garnishment, notice of lien, sequestration, or similar process\nissued by or on behalf of a creditor or other claimant with respect to an\naccount.\n\nb. This subsection applies to creditor process with respect to an authorized\naccount of the sender of a payment order if the creditor process is served on\nthe receiving bank. For the purpose of determining rights with respect to the\ncreditor process, if the receiving bank accepts the payment order the balance in\nthe authorized account is deemed to be reduced by the amount of the payment\norder to the extent the bank did not otherwise receive payment of the order,\nunless the creditor process is served at a time and in a manner affording the\nbank a reasonable opportunity to act on it before the bank accepts the payment\norder.\n\nc. If a beneficiary’s bank has received a payment order for payment to the\nbeneficiary’s account in the bank, the following rules apply:\n\n 1. The bank may credit the beneficiary’s account. The amount credited\n may be set off against an obligation owed by the beneficiary to the bank or\n may be applied to satisfy creditor process served on the bank with respect to\n the account.\n\n 2. The bank may credit the beneficiary’s account and allow withdrawal of\n the amount credited unless creditor process with respect to the account is\n served at a time and in a manner affording the bank a reasonable opportunity\n to act to prevent withdrawal.\n\n 3. If creditor process with respect to the beneficiary’s account has\n been served and the bank has had a reasonable opportunity to act on it, the\n bank may not reject the payment order except for a reason unrelated to the\n service of process.\n\nd. Creditor process with respect to a payment by the originator to the\nbeneficiary pursuant to a funds transfer may be served only on the\nbeneficiary’s bank with respect to the debt owed by that bank to the\nbeneficiary. Any other bank served with the creditor process is not obliged to\nact with respect to the process.\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}}