                                 CODE OF VIRGINIA

LOST, DESTROYED, OR STOLEN CASHIER&#8217;S CHECK, TELLER&#8217;S CHECK, OR
CERTIFIED CHECK (§ 8.3A-312)

a. In this section:

   1. &#8220;Check&#8221; means a cashier&#8217;s check, teller&#8217;s check, or
   certified check.

   2. &#8220;Claimant&#8221; means a person who claims the right to receive the
   amount of a cashier&#8217;s check, teller&#8217;s check, or certified check
   that was lost, destroyed, or stolen.

   3. &#8220;Declaration of loss&#8221; means a written statement, made under
   penalty of perjury, to the effect that (i) the declarer lost possession of a
   check, (ii) the declarer is the drawer or payee of the check, in the case of a
   certified check, or the remitter or payee of the check, in the case of a
   cashier&#8217;s check or teller&#8217;s check, (iii) the loss of possession
   was not the result of a transfer by the declarer or a lawful seizure, and (iv)
   the declarer cannot reasonably obtain possession of the check because the
   check was destroyed, its whereabouts cannot be determined, or it is in the
   wrongful possession of an unknown person or a person that cannot be found or
   is not amenable to service of process.

   4. &#8220;Obligated bank&#8221; means the issuer of a cashier&#8217;s check or
   teller&#8217;s check or the acceptor of a certified check.

b. A claimant may assert a claim to the amount of a check by a communication to
the obligated bank describing the check with reasonable certainty and requesting
payment of the amount of the check, if (i) the claimant is the drawer or payee
of a certified check or the remitter or payee of a cashier&#8217;s check or
teller&#8217;s check, (ii) the communication contains or is accompanied by a
declaration of loss of the claimant with respect to the check, (iii) the
communication is received at a time and in a manner affording the bank a
reasonable time to act on it before the check is paid, and (iv) the claimant
provides reasonable identification if requested by the obligated bank. Delivery
of a declaration of loss is a warranty of the truth of the statements made in
the declaration. If a claim is asserted in compliance with this subsection, the
following rules apply:

   1. The claim becomes enforceable at the later of (i) the time the claim is
   asserted, or (ii) the ninetieth day following the date of the check, in the
   case of a cashier&#8217;s check or teller&#8217;s check, or the ninetieth day
   following the date of the acceptance, in the case of a certified check.

   2. Until the claim becomes enforceable, it has no legal effect and the
   obligated bank may pay the check or, in the case of a teller&#8217;s check,
   may permit the drawee to pay the check. Payment to a person entitled to
   enforce the check discharges all liability of the obligated bank with respect
   to the check.

   3. If the claim becomes enforceable before the check is presented for payment,
   the obligated bank is not obliged to pay the check.

   4. When the claim becomes enforceable, the obligated bank becomes obliged to
   pay the amount of the check to the claimant if payment of the check has not
   been made to a person entitled to enforce the check. Subject to &#xA7; 8.4-302
   (a) (1), payment to the claimant discharges all liability of the obligated
   bank with respect to the check.

c. If the obligated bank pays the amount of a check to a claimant under
subsection (b) (4) and the check is presented for payment by a person having
rights of a holder in due course, the claimant is obliged to (i) refund the
payment to the obligated bank if the check is paid, or (ii) pay the amount of
the check to the person having rights of a holder in due course if the check is
dishonored.

d. If a claimant has the right to assert a claim under subsection (b) and is
also a person entitled to enforce a cashier&#8217;s check, teller&#8217;s check,
or certified check which is lost, destroyed, or stolen, the claimant may assert
rights with respect to the check either under this section or &#xA7; 8.3A-309.

HISTORY: 1992, c. 693.