                                 CODE OF VIRGINIA

WHEN ITEMS SUBJECT TO NOTICE, STOP-PAYMENT ORDER, LEGAL PROCESS OR SETOFF; ORDER
IN WHICH ITEMS MAY BE CHARGED OR CERTIFIED (§ 8.4-303)

a. Any knowledge, notice or stop-payment order received by, legal process served
upon, or setoff exercised by a payor bank, comes too late to terminate, suspend
or modify the bank&#8217;s right or duty to pay an item or to charge its
customer&#8217;s account for the item if the knowledge, notice, stop-payment
order or legal process is received or served and a reasonable time for the bank
to act thereon expires or the setoff is exercised after the earliest of the
following:

   1. the bank accepts or certifies the item;

   2. the bank pays the item in cash;

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

   4. the bank becomes accountable for the amount of the item under &#xA7;
   8.4-302 dealing with the payor bank&#8217;s responsibility for late return of
   items; or

   5. with respect to checks, a cut-off hour no earlier than one hour after the
   opening of the next banking day after the banking day on which the bank
   received the check and no later than the close of that next banking day or, if
   no cut-off hour is fixed, the close of the next business day after the banking
   day on which the bank received the check.

b. Subject to subsection (a) items may be accepted, paid, certified or charged
to the indicated account of its customer in any order convenient to the bank.

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