8.4-302 - Payor bank's responsibility for late return of item. - Virginia Statutes

§ 8.4-302. Payor bank's responsibility for late return of item.

(a) If an item is presented and received by a payor bank, the bank isaccountable for the amount to:

(1) a demand item, other than a documentary draft, whether properly payableor not if the bank, in any case where it is not also the depositary bank,retains the item beyond midnight of the banking day of receipt withoutsettling for it or, regardless of whether it is also the depositary bank,does not pay or return the item or send notice of dishonor until after itsmidnight deadline; or

(2) any other properly payable item unless, within the time allowed foracceptance or payment of that item, the bank either accepts or pays the itemor returns it and accompanying documents.

(b) The liability of a payor bank to pay an item pursuant to subsection (a)is subject to defenses based on breach of a presentment warranty (§8.4-207.2) or proof that the person seeking enforcement of the liabilitypresented or transferred the item for the purpose of defrauding the payorbank.

(Code 1950, §§ 6-543.1 to 6-543.3, pp. 60, 61; 1964, c. 219; 1992, c. 693.)