{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-506.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-506.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-506.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-506.html"}],"law_id":69858,"edition_id":1,"section_id":69858,"structure_id":15605,"section_number":"8.4A-506","catch_line":"Rate of interest","history":"1990, c. 9.","full_text":"a\n\nIf, under this title, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system.b\n\nIf the amount of interest is not determined by an agreement or rule as stated in subsection (a) of this section, the amount is calculated by multiplying the applicable Federal Funds rate by the amount on which interest is payable, and then multiplying the product by the number of days for which interest is payable. The applicable Federal Funds rate is the average of the Federal Funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable divided by 360. The Federal Funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order is required to refund payment to the sender of the order because the funds transfer was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.","order_by":null,"text":{"0":{"id":252430,"text":"If, under this title, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if the payment order is transmitted through a funds-transfer system.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":252431,"text":"If the amount of interest is not determined by an agreement or rule as stated in subsection (a) of this section, the amount is calculated by multiplying the applicable Federal Funds rate by the amount on which interest is payable, and then multiplying the product by the number of days for which interest is payable. The applicable Federal Funds rate is the average of the Federal Funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable divided by 360. The Federal Funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order is required to refund payment to the sender of the order because the funds transfer was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-506\/","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":283343,"object_type":"law","relational_id":69858,"identifier":"8.4A-506","token":"8.4A\/5\/8.4A-506","url":"\/8.4A-506\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-506\/","token":"8.4A\/5\/8.4A-506","dublin_core":{"Title":"Rate of interest","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-506","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> If, under this title, a receiving bank is obliged to pay interest with respect to a payment order<\/span> issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, or (ii) by a funds-transfer system rule if the payment order<\/span> is transmitted through a funds-transfer system. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If the amount of interest is not determined by an agreement or rule as stated in subsection (a) of this section, the amount is calculated by multiplying the applicable Federal Funds rate by the amount on which interest is payable, and then multiplying the product by the number of days for which interest is payable. The applicable Federal Funds rate is the average of the Federal Funds rates published by the Federal Reserve Bank of New York for each of the days for which interest is payable divided by 360. The Federal Funds rate for any day on which a published rate is not available is the same as the published rate for the next preceding day for which there is a published rate. If a receiving bank that accepted a payment order<\/span> is required to refund payment to the sender of the order<\/span> because the funds transfer<\/span> was not completed, but the failure to complete was not due to any fault by the bank, the interest payable is reduced by a percentage equal to the reserve requirement on deposits of the receiving bank. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRATE OF INTEREST (\u00a7 8.4A-506)\n\na. If, under this title, a receiving bank is obliged to pay interest with\nrespect to a payment order issued to the bank, the amount payable may be\ndetermined (i) by agreement of the sender and receiving bank, or (ii) by a\nfunds-transfer system rule if the payment order is transmitted through a\nfunds-transfer system.\n\nb. If the amount of interest is not determined by an agreement or rule as stated\nin subsection (a) of this section, the amount is calculated by multiplying the\napplicable Federal Funds rate by the amount on which interest is payable, and\nthen multiplying the product by the number of days for which interest is\npayable. The applicable Federal Funds rate is the average of the Federal Funds\nrates published by the Federal Reserve Bank of New York for each of the days for\nwhich interest is payable divided by 360. The Federal Funds rate for any day on\nwhich a published rate is not available is the same as the published rate for\nthe next preceding day for which there is a published rate. If a receiving bank\nthat accepted a payment order is required to refund payment to the sender of the\norder because the funds transfer was not completed, but the failure to complete\nwas not due to any fault by the bank, the interest payable is reduced by a\npercentage equal to the reserve requirement on deposits of the receiving bank.\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}}