                                 CODE OF VIRGINIA

UNENFORCEABILITY OF CERTAIN VERIFIED PAYMENT ORDERS (§ 8.4A-203)

a. If an accepted payment order is not, under subsection (a) of § 8.4A-202, an
authorized order of a customer identified as sender, but is effective as an
order of the customer pursuant to subsection (b) of § 8.4A-202, the following
rules apply:

   1. By express agreement evidenced by a record, the receiving bank may limit
   the extent to which it is entitled to enforce or retain payment of the payment
   order.

   2. The receiving bank is not entitled to enforce or retain payment of payment
   order if the customer proves that the order was not caused, directly or
   indirectly, by a person (i) entrusted at any time with duties to act for the
   customer with respect to payment orders or the security procedure, or (ii) who
   obtained access to transmitting facilities of the customer or who obtained,
   from a source controlled by the customer and without authority of the
   receiving bank, information facilitating breach of the security procedure,
   regardless of how the information was obtained or whether the customer was at
   fault. Information includes any access device, computer software, or the like.

b. This section applies to amendments of payment orders to the same extent it
applies to payment orders.

HISTORY: 1990, c. 9; 2024, c. 652.