                                 CODE OF VIRGINIA

MEDIUM AND TIME OF SETTLEMENT BY BANK (§ 8.4-211.1)

a. With respect to settlement by a bank, the medium and time of settlement may
be prescribed by Federal Reserve regulations or circulars, clearing-house rules,
and the like, or agreement. In the absence of such prescription:

   1. the medium of settlement is cash or credit to an account in a Federal
   Reserve bank of or specified by the person to receive settlement; and

   2. the time of settlement, is:

i. with respect to tender of settlement by cash, a cashier&#8217;s check, or
teller&#8217;s check, when the cash or check is sent or delivered;

   ii. with respect to tender of settlement by credit in an account in a Federal
   Reserve Bank, when the credit is made;

   iii. with respect to tender of settlement by a credit or debit to an account
   in a bank, when the credit or debit is made or, in the case of tender of
   settlement by authority to charge an account, when the authority is sent or
   delivered; or

   iv. with respect to tender of settlement by a funds transfer, when payment is
   made pursuant to &#xA7; 8.4A-406 (a) to the person receiving settlement.

b. If the tender of settlement is not by a medium authorized by subsection (a)
or the time of settlement is not fixed by subsection (a), no settlement occurs
until the tender of settlement is accepted by the person receiving settlement.

c. If settlement for an item is made by cashier&#8217;s check or teller&#8217;s
check and the person receiving settlement, before its midnight deadline:

   1. presents or forwards the check for collection, settlement is final when the
   check is finally paid; or

   2. fails to present or forward the check for collection, settlement is final
   at the midnight deadline of the person receiving settlement.

d. If settlement for an item is made by giving authority to charge the account
of the bank giving settlement in the bank receiving settlement, settlement is
final when the charge is made by the bank receiving settlement if there are
funds available in the account for the amount of the item.

HISTORY: 1992, c. 693.