                                 CODE OF VIRGINIA

OBLIGATION OF SENDER TO PAY RECEIVING BANK (§ 8.4A-402)

a. This section is subject to &#xA7;&#xA7; 8.4A-205 and 8.4A-207.

b. With respect to a payment order issued to the beneficiary&#8217;s bank,
acceptance of the order by the bank obliges the sender to pay the bank the
amount of the order, but payment is not due until the payment date of the order.

c. This subsection is subject to subsection (e) of this section, and to &#xA7;
8.4A-303. With respect to a payment order issued to a receiving bank other than
the beneficiary&#8217;s bank, acceptance of the order by the receiving bank
obliges the sender to pay the bank the amount of the sender&#8217;s order.
Payment by the sender is not due until the execution date of the sender&#8217;s
order. The obligation of that sender to pay its payment order is excused if the
funds transfer is not completed by acceptance by the beneficiary&#8217;s bank of
a payment order instructing payment to the beneficiary of that sender&#8217;s
payment order.

d. If the sender of a payment order pays the order and was not obliged to pay
all or part of the amount paid, the bank receiving payment is obliged to refund
payment to the extent the sender was not obliged to pay. Except as provided in
&#xA7;&#xA7; 8.4A-204 and 8.4A-304, interest is payable on the refundable amount
from the date of payment.

e. If a funds transfer is not completed as stated in subsection (c) of this
section, and an intermediary bank is obliged to refund payment as stated in
subsection (d) of this section, but is unable to do so because not permitted by
applicable law or because the bank suspends payments, a sender in the funds
transfer that executed a payment order in compliance with an instruction, as
stated in subdivision (a) (1) of &#xA7; 8.4 A-302, to route the funds transfer
through that intermediary bank is entitled to receive or retain payment from the
sender of the payment order that it accepted. The first sender in the funds
transfer that issued an instruction requiring routing through that intermediary
bank is subrogated to the right of the bank that paid the intermediary bank to
refund as stated in subsection (d) of this section.

f. The right of the sender of a payment order to be excused from the obligation
to pay the order as stated in subsection (c) of this section, or to receive
refund under subsection (d) of this section, may not be varied by agreement.

HISTORY: 1990, c. 9.