                                 CODE OF VIRGINIA

RATE OF INTEREST (§ 8.4A-506)

a. If, under this title, a receiving bank is obliged to pay interest with
respect to a payment order issued to the bank, the amount payable may be
determined (i) by agreement of the sender and receiving bank, or (ii) by a
funds-transfer system rule if the payment order is transmitted through a
funds-transfer system.

b. If the amount of interest is not determined by an agreement or rule as stated
in subsection (a) of this section, the amount is calculated by multiplying the
applicable Federal Funds rate by the amount on which interest is payable, and
then multiplying the product by the number of days for which interest is
payable. The applicable Federal Funds rate is the average of the Federal Funds
rates published by the Federal Reserve Bank of New York for each of the days for
which interest is payable divided by 360. The Federal Funds rate for any day on
which a published rate is not available is the same as the published rate for
the next preceding day for which there is a published rate. If a receiving bank
that accepted a payment order is required to refund payment to the sender of the
order because the funds transfer was not completed, but the failure to complete
was not due to any fault by the bank, the interest payable is reduced by a
percentage equal to the reserve requirement on deposits of the receiving bank.

HISTORY: 1990, c. 9.