{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4A-507.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4A-507.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4A-507.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4A-507.html"}],"law_id":64515,"edition_id":1,"section_id":64515,"structure_id":15605,"section_number":"8.4A-507","catch_line":"Choice of law","history":"1990, c. 9.","full_text":"a\n\nThe following rules apply unless the affected parties otherwise agree or subsection (c) of this section applies:1\n\nThe rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located.2\n\nThe rights and obligations between the beneficiary’s bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary’s bank is located.3\n\nThe issue of when payment is made pursuant to a funds transfer by the originator to the beneficiary is governed by the law of the jurisdiction in which the beneficiary’s bank is located.b\n\nIf the parties described in each subdivision of subsection (a) of this section have made an agreement selecting the law of a particular jurisdiction to govern rights and obligations between each other, the law of that jurisdiction governs those rights and obligations, whether or not the payment order or the funds transfer bears a reasonable relation to that jurisdiction.c\n\nA funds-transfer system rule may select the law of a particular jurisdiction to govern (i) rights and obligations between participating banks with respect to payment orders transmitted or processed through the system, or (ii) the rights and obligations of some or all parties to a funds transfer any part of which is carried out by means of the system. A choice of law made pursuant to clause (i) of this subsection is binding on participating banks. A choice of law made pursuant to clause (ii) of this subsection is binding on the originator, other sender, or a receiving bank having notice that the funds-transfer system might be used in the funds transfer and of the choice of law by the system which the originator, other sender, or receiving bank issued or accepted a payment order. The beneficiary of a funds transfer is bound by the choice of law if, when the funds transfer is initiated, the beneficiary has notice that the funds transfer system might be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern, whether or not that law bears a reasonable relation to the matter in issue.d\n\nIn the event of inconsistency between an agreement under subsection (b) of this section, and a choice-of-law rule under subsection (c) of this section, the agreement under subsection (b) of this section prevails.e\n\nIf a funds transfer is made by use of more than one funds-transfer system and there is inconsistency between choice-of-law rules of the systems, the matter in issue is governed by the law of the selected jurisdiction that has the most significant relationship to the matter in issue.","order_by":null,"text":{"0":{"id":234806,"text":"The following rules apply unless the affected parties otherwise agree or subsection (c) of this section applies:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":234807,"text":"The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":234808,"text":"The rights and obligations between the beneficiary’s bank and the beneficiary are governed by the law of the jurisdiction in which the beneficiary’s bank is located.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":234809,"text":"The issue of when payment is made pursuant to a funds transfer by the originator to the beneficiary is governed by the law of the jurisdiction in which the beneficiary’s bank is located.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"b"},"4":{"id":234810,"text":"If the parties described in each subdivision of subsection (a) of this section have made an agreement selecting the law of a particular jurisdiction to govern rights and obligations between each other, the law of that jurisdiction governs those rights and obligations, whether or not the payment order or the funds transfer bears a reasonable relation to that jurisdiction.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a3","next_prefix":"c"},"5":{"id":234811,"text":"A funds-transfer system rule may select the law of a particular jurisdiction to govern (i) rights and obligations between participating banks with respect to payment orders transmitted or processed through the system, or (ii) the rights and obligations of some or all parties to a funds transfer any part of which is carried out by means of the system. A choice of law made pursuant to clause (i) of this subsection is binding on participating banks. A choice of law made pursuant to clause (ii) of this subsection is binding on the originator, other sender, or a receiving bank having notice that the funds-transfer system might be used in the funds transfer and of the choice of law by the system which the originator, other sender, or receiving bank issued or accepted a payment order. The beneficiary of a funds transfer is bound by the choice of law if, when the funds transfer is initiated, the beneficiary has notice that the funds transfer system might be used in the funds transfer and of the choice of law by the system. The law of a jurisdiction selected pursuant to this subsection may govern, whether or not that law bears a reasonable relation to the matter in issue.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"6":{"id":234812,"text":"In the event of inconsistency between an agreement under subsection (b) of this section, and a choice-of-law rule under subsection (c) of this section, the agreement under subsection (b) of this section prevails.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"e"},"7":{"id":234813,"text":"If a funds transfer is made by use of more than one funds-transfer system and there is inconsistency between choice-of-law rules of the systems, the matter in issue is governed by the law of the selected jurisdiction that has the most significant relationship to the matter in issue.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d"}},"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":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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4A-507\/","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":58892,"section_number":"8.1A-301","catch_line":"Territorial applicability; parties' power to choose applicable law","order_by":null,"url":"\/8.1A-301\/"},{"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":false,"permalink":{"id":283347,"object_type":"law","relational_id":64515,"identifier":"8.4A-507","token":"8.4A\/5\/8.4A-507","url":"\/8.4A-507\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4A-507\/","token":"8.4A\/5\/8.4A-507","dublin_core":{"Title":"Choice of law","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4A-507","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> The following rules apply unless the affected parties otherwise agree or subsection (c) of this section applies: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The rights and obligations between the sender of a payment order<\/span> and the receiving bank are governed by the law<\/span> of the jurisdiction<\/span> in which the receiving bank is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The rights and obligations between the beneficiary’s bank and the beneficiary are governed by the law<\/span> of the jurisdiction<\/span> in which the beneficiary’s bank is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The issue<\/span> of when payment is made pursuant to a funds transfer<\/span> by the originator<\/span> to the beneficiary is governed by the law<\/span> of the jurisdiction<\/span> in which the beneficiary’s bank is located. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If the parties described in each subdivision of subsection (a) of this section have made an agreement selecting the law<\/span> of a particular jurisdiction<\/span> to govern rights and obligations between each other, the law<\/span> of that jurisdiction<\/span> governs those rights and obligations, whether or not the payment order<\/span> or the funds transfer<\/span> bears a reasonable relation to that jurisdiction<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> A funds-transfer system rule may select the law<\/span> of a particular jurisdiction<\/span> to govern (i) rights and obligations between participating banks with respect to payment orders<\/span> transmitted or processed through the system, or (ii) the rights and obligations of some or all parties to a funds transfer<\/span> any part of which is carried out by means of the system. A choice of law<\/span> made pursuant to clause (i) of this subsection is binding on participating banks. A choice of law<\/span> made pursuant to clause (ii) of this subsection is binding on the originator<\/span>, other sender, or a receiving bank having notice that the funds-transfer system might be used in the funds transfer<\/span> and of the choice of law<\/span> by the system which the originator<\/span>, other sender, or receiving bank issued or accepted a payment order<\/span>. The beneficiary of a funds transfer<\/span> is bound by the choice of law<\/span> if, when the funds transfer<\/span> is initiated, the beneficiary has notice that the funds transfer<\/span> system might be used in the funds transfer<\/span> and of the choice of law<\/span> by the system. The law<\/span> of a jurisdiction<\/span> selected pursuant to this subsection may govern, whether or not that law<\/span> bears a reasonable relation to the matter in issue<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> In the event of inconsistency between an agreement under subsection (b) of this section, and a choice-of-law<\/span> rule under subsection (c) of this section, the agreement under subsection (b) of this section prevails. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> If a funds transfer<\/span> is made by use of more than one funds-transfer system and there is inconsistency between choice-of-law<\/span> rules of the systems, the matter in issue<\/span> is governed by the law<\/span> of the selected jurisdiction<\/span> that has the most significant relationship to the matter in issue<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCHOICE OF LAW (\u00a7 8.4A-507)\n\na. The following rules apply unless the affected parties otherwise agree or\nsubsection (c) of this section applies:\n\n 1. The rights and obligations between the sender of a payment order and the\n receiving bank are governed by the law of the jurisdiction in which the\n receiving bank is located.\n\n 2. The rights and obligations between the beneficiary’s bank and the\n beneficiary are governed by the law of the jurisdiction in which the\n beneficiary’s bank is located.\n\n 3. The issue of when payment is made pursuant to a funds transfer by the\n originator to the beneficiary is governed by the law of the jurisdiction in\n which the beneficiary’s bank is located.\n\nb. If the parties described in each subdivision of subsection (a) of this\nsection have made an agreement selecting the law of a particular jurisdiction to\ngovern rights and obligations between each other, the law of that jurisdiction\ngoverns those rights and obligations, whether or not the payment order or the\nfunds transfer bears a reasonable relation to that jurisdiction.\n\nc. A funds-transfer system rule may select the law of a particular jurisdiction\nto govern (i) rights and obligations between participating banks with respect to\npayment orders transmitted or processed through the system, or (ii) the rights\nand obligations of some or all parties to a funds transfer any part of which is\ncarried out by means of the system. A choice of law made pursuant to clause (i)\nof this subsection is binding on participating banks. A choice of law made\npursuant to clause (ii) of this subsection is binding on the originator, other\nsender, or a receiving bank having notice that the funds-transfer system might\nbe used in the funds transfer and of the choice of law by the system which the\noriginator, other sender, or receiving bank issued or accepted a payment order.\nThe beneficiary of a funds transfer is bound by the choice of law if, when the\nfunds transfer is initiated, the beneficiary has notice that the funds transfer\nsystem might be used in the funds transfer and of the choice of law by the\nsystem. The law of a jurisdiction selected pursuant to this subsection may\ngovern, whether or not that law bears a reasonable relation to the matter in\nissue.\n\nd. In the event of inconsistency between an agreement under subsection (b) of\nthis section, and a choice-of-law rule under subsection (c) of this section, the\nagreement under subsection (b) of this section prevails.\n\ne. If a funds transfer is made by use of more than one funds-transfer system and\nthere is inconsistency between choice-of-law rules of the systems, the matter in\nissue is governed by the law of the selected jurisdiction that has the most\nsignificant relationship to the matter in issue.\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}}