6.2-883 - (Effective October 1, 2010) Acceptance of drafts or bills of exchange; issuance of letters of credit. - Virginia Statutes

§ 6.2-883. (Effective October 1, 2010) Acceptance of drafts or bills ofexchange; issuance of letters of credit.

A. Any bank doing business in the Commonwealth, subject to conditions,limitations, and restrictions imposed by the Commission, may (i) accept forpayment at a future date drafts or bills of exchange drawn upon it by itscustomers on time not exceeding six months and (ii) issue letters of credit,upon such terms and conditions and of such duration as may be deemedappropriate by such bank, that authorize the holders thereof to draw draftsupon it or its correspondent, which drafts may be payable at sight or may beaccepted for payment from the date of presentment on time not exceeding sixmonths.

B. The Commission, in adopting conditions, limitations, and restrictions withrespect to such acceptances or letters of credit, shall use as a standard orguide the respective conditions, limitations, and restrictions, if any,imposed from time to time by federal statute or by the Federal Reserve Boardon its member banks.

(Code 1950, § 6-82; 1966, c. 584, § 6.1-68; 1974, c. 81; 1976, c. 152; 1994,c. 7; 2010, c. 794.)