                                 CODE OF VIRGINIA

FINAL PAYMENT OF ITEM BY PAYOR BANK; WHEN PROVISIONAL DEBITS AND CREDITS BECOME
FINAL; WHEN CERTAIN CREDITS BECOME AVAILABLE FOR WITHDRAWAL (§ 8.4-213)

a. An item is finally paid by a payor bank when the bank has first done any of
the following:

   1. paid the item in cash;

   2. settled for the item without having a right to revoke the settlement under
   statute, clearing-house rule, or agreement; or

   3. made a provisional settlement for the item and failed to revoke the
   settlement in the time and manner permitted by statute, clearing-house rule or
   agreement.

b. If provisional settlement for an item does not become final, the item is not
finally paid.

c. If provisional settlement for an item between the presenting and payor banks
is made through a clearing house or by debits or credits in an account between
them, then to the extent that provisional debits or credits for the item are
entered in accounts between the presenting and payor banks or between the
presenting and successive prior collecting banks seriatim, they become final
upon final payment of the item by the payor bank.

d. If a collecting bank receives a settlement for an item which is or becomes
final the bank is accountable to its customer for the amount of the item and any
provisional credit given for the item in an account with its customer becomes
final.

e. Subject to (i) applicable law stating a time for availability of funds and
(ii) any right of the bank to apply the credit to an obligation of the customer,
credit given by a bank for an item in a customer&#8217;s account becomes
available for withdrawal as of right:

   1. if the bank has received a provisional settlement for the item, when the
   settlement becomes final and the bank has had a reasonable time to receive
   return of the item and the item has not been received within that time;

   2. if the bank is both the depositary bank and the payor bank, and the item is
   finally paid, at the opening of the bank&#8217;s second banking day following
   receipt of the item.

f. Subject to applicable law stating a time for availability of funds and any
right of a bank to apply a deposit to an obligation of the depositor, a deposit
of money becomes available for withdrawal as of right at the opening of the
bank&#8217;s next banking day after receipt of the deposit.

HISTORY: 1964, c. 219; 1992, c. 693.