                                 CODE OF VIRGINIA

REJECTION OF PAYMENT ORDER (§ 8.4A-210)

a. A payment order is rejected by the receiving bank by a notice of rejection
transmitted to the sender orally or in a record. A notice of rejection need not
use any particular words and is sufficient if it indicates that the receiving
bank is rejecting the order or will not execute or pay the order. Rejection is
effective when the notice is given if transmission is by a means that is
reasonable in the circumstances. If notice of rejection is given by a means that
is not reasonable, rejection is effective when the notice is received. If an
agreement of the sender and receiving bank establishes the means to be used to
reject a payment order, (i) any means complying with the agreement is reasonable
and (ii) any means not complying is not reasonable unless no significant delay
in receipt of the notice resulted from the use of the noncomplying means.

b. This subsection applies if a receiving bank other than the
beneficiary&#8217;s bank fails to execute a payment order despite the existence
on the execution date of a withdrawable credit balance in an authorized account
of the sender sufficient to cover the order. If the sender does not receive
notice of rejection of the order on the execution date and the authorized
account of the sender does not bear interest, the bank is obliged to pay
interest to the sender on the amount of the order for the number of days
elapsing after the execution date to the earlier of the day the order is
canceled pursuant to subsection (d) of &#xA7; 8.4A-211 or the day the sender
receives notice or learns that the order was not executed, counting the final
day of the period as an elapsed day. If the withdrawable credit balance during
that period falls below the amount of the order, the amount of interest is
reduced accordingly.

c. If a receiving bank suspends payments, all unaccepted payment orders issued
to it are deemed rejected at the time the bank suspends payments.

d. Acceptance of a payment order precludes a later rejection of the order.
Rejection of a payment order precludes a later acceptance of the order.

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