8.4-303 - When items subject to notice, stop-payment order, legal process or setoff; order in which items may be charged or certified. - Virginia Statutes

§ 8.4-303. When items subject to notice, stop-payment order, legal process orsetoff; order in which items may be charged or certified.

(a) Any knowledge, notice or stop-payment order received by, legal processserved upon, or setoff exercised by a payor bank, comes too late toterminate, suspend or modify the bank's right or duty to pay an item or tocharge its customer's account for the item if the knowledge, notice,stop-payment order or legal process is received or served and a reasonabletime for the bank to act thereon expires or the setoff is exercised after theearliest of the following:

(1) the bank accepts or certifies the item;

(2) the bank pays the item in cash;

(3) the bank settles for the item without having a right to revoke thesettlement under statute, clearing-house rule or agreement;

(4) the bank becomes accountable for the amount of the item under § 8.4-302dealing with the payor bank's responsibility for late return of items; or

(5) with respect to checks, a cut-off hour no earlier than one hour after theopening of the next banking day after the banking day on which the bankreceived the check and no later than the close of that next banking day or,if no cut-off hour is fixed, the close of the next business day after thebanking day on which the bank received the check.

(b) Subject to subsection (a) items may be accepted, paid, certified orcharged to the indicated account of its customer in any order convenient tothe bank.

(1964, c. 219; 1992, c. 693.)