8.3A-411 - A-411. Refusal to pay cashier's checks, teller's checks, and certified checks. - Virginia Statutes

§ 8.3A-411. Refusal to pay cashier's checks, teller's checks, and certifiedchecks.

(a) In this section, "obligated bank" means the acceptor of a certifiedcheck or the issuer of a cashier's check or teller's check bought from theissuer.

(b) If the obligated bank wrongfully (i) refuses to pay a cashier's check orcertified check, (ii) stops payment of a teller's check, or (iii) refuses topay a dishonored teller's check, the person asserting the right to enforcethe check is entitled to compensation for expenses and loss of interestresulting from the nonpayment and may recover consequential damages if theobligated bank refuses to pay after receiving notice of particularcircumstances giving rise to the damages.

(c) Expenses or consequential damages under subsection (b) are notrecoverable if the refusal of the obligated bank to pay occurs because (i)the bank suspends payments, (ii) the obligated bank asserts a claim ordefense of the bank that it has reasonable grounds to believe is availableagainst the person entitled to enforce the instrument, (iii) the obligatedbank has a reasonable doubt whether the person demanding payment is theperson entitled to enforce the instrument, or (iv) payment is prohibited bylaw.

(1992, c. 693.)