                                 CODE OF VIRGINIA

REFUSAL TO PAY CASHIER&#8217;S CHECKS, TELLER&#8217;S CHECKS, AND CERTIFIED
CHECKS (§ 8.3A-411)

a. In this section, &#8220;obligated bank&#8221; means the acceptor of a
certified check or the issuer of a cashier&#8217;s check or teller&#8217;s check
bought from the issuer.

b. If the obligated bank wrongfully (i) refuses to pay a cashier&#8217;s check
or certified check, (ii) stops payment of a teller&#8217;s check, or (iii)
refuses to pay a dishonored teller&#8217;s check, the person asserting the right
to enforce the check is entitled to compensation for expenses and loss of
interest resulting from the nonpayment and may recover consequential damages if
the obligated bank refuses to pay after receiving notice of particular
circumstances giving rise to the damages.

c. Expenses or consequential damages under subsection (b) are not recoverable if
the refusal of the obligated bank to pay occurs because (i) the bank suspends
payments, (ii) the obligated bank asserts a claim or defense of the bank that it
has reasonable grounds to believe is available against the person entitled to
enforce the instrument, (iii) the obligated bank has a reasonable doubt whether
the person demanding payment is the person entitled to enforce the instrument,
or (iv) payment is prohibited by law.

HISTORY: 1992, c. 693.