                                 CODE OF VIRGINIA

RIGHTS OF FINANCING AGENCY (§ 8.2-506)

1. A financing agency by paying or purchasing for value a draft which relates to
a shipment of goods acquires to the extent of the payment or purchase and in
addition to its own rights under the draft and any document of title securing it
any rights of the shipper in the goods including the right to stop delivery and
the shipper&#8217;s right to have the draft honored by the buyer.

2. The right to reimbursement of a financing agency which has in good faith
honored or purchased the draft under commitment to or authority from the buyer
is not impaired by subsequent discovery of defects with reference to any
relevant document which was apparently regular.

HISTORY: 1964, c. 219; 2004, c. 200.