119 KiB
119 KiB
| 1 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-101 | Short title. | <p>This title may be cited as Uniform Commercial Code -- Negotiable Instruments.</p><p>1964, c. 219, § 8.3-101; 1992, c. 693.</p> | ||||||||
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| 2 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-102 | Subject matter. | <p>(a) This title applies to negotiable instruments. It does not apply to money, to payment orders governed by Title 8.4A, or to securities governed by Title 8.8A.</p><p>(b) If there is conflict between this title and Title 8.4 or 8.9A, Titles 8.4 and 8.9A govern.</p><p>(c) Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the Federal Reserve Banks supersede any inconsistent provision of this title to the extent of the inconsistency.</p><p>1964, c. 219, § 8.3-103; 1992, c. 693.</p> | ||||||||
| 3 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-106 | Unconditional promise or order. | <p>(a) Except as provided in this section, for the purposes of § <a href='http://law.lis.virginia.gov/vacode/8.3A-104/'>8.3A-104</a> (a), a promise or order is unconditional unless it states (i) an express condition to payment, (ii) that the promise or order is subject to or governed by another writing, or (iii) that rights or obligations with respect to the promise or order are stated in another writing. A reference to another writing does not of itself make the promise or order conditional.</p><p>(b) A promise or order is not made conditional (i) by a reference to another writing for a statement of rights with respect to collateral, prepayment, or acceleration, or (ii) because payment is limited to resort to a particular fund or source.</p><p>(c) If a promise or order requires, as a condition to payment, a countersignature by a person whose specimen signature appears on the promise or order, the condition does not make the promise or order conditional for the purposes of § <a href='http://law.lis.virginia.gov/vacode/8.3A-104/'>8.3A-104</a> (a). If the person whose specimen signature appears on an instrument fails to countersign the instrument, the failure to countersign is a defense to the obligation of the issuer, but the failure does not prevent a transferee of the instrument from becoming a holder of the instrument.</p><p>(d) If a promise or order at the time it is issued or first comes into possession of a holder contains a statement, required by applicable statutory or administrative law, to the effect that the rights of a holder or transferee are subject to claims or defenses that the issuer could assert against the original payee, the promise or order is not thereby made conditional for the purposes of § 8.3 A-104 (a); but if the promise or order is an instrument, there cannot be a holder in due course of the instrument.</p><p>Code 1950, § 6-355; 1964, c. 219, §§ 8.3-105, 8.3-119; 1992, c. 693.</p> | ||||||||
| 4 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-107 | Instrument payable in foreign money. | <p>Unless the instrument otherwise provides, an instrument that states the amount payable in foreign money may be paid in the foreign money or in an equivalent amount in dollars calculated by using the current bank-offered spot rate at the place of payment for the purchase of dollars on the day on which the instrument is paid.</p><p>Code 1950, § 6-358; 1964, c. 219, § 8.3-107; 1992, c. 693.</p> | ||||||||
| 5 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-109 | Payable to bearer or to order. | <p>(a) A promise or order is payable to bearer if it: (1) states that it is payable to bearer or to the order of bearer or otherwise indicates that the person in possession of the promise or order is entitled to payment; (2) does not state a payee; or (3) states that it is payable to or to the order of cash or otherwise indicates that it is not payable to an identified person.</p><p>(b) A promise or order that is not payable to bearer is payable to order if it is payable (i) to the order of an identified person or (ii) to an identified person or order. A promise or order that is payable to order is payable to the identified person.</p><p>(c) An instrument payable to bearer may become payable to an identified person if it is specially endorsed pursuant to § <a href='http://law.lis.virginia.gov/vacode/8.3A-205/'>8.3A-205</a> (a). An instrument payable to an identified person may become payable to bearer if it is endorsed in blank pursuant to § <a href='http://law.lis.virginia.gov/vacode/8.3A-205/'>8.3A-205</a> (b).</p><p>Code 1950, §§ 6-360, 6-361; 1956, c. 149; 1964, c. 219, §§ 8.3-110, 8.3-111; 1992, c. 693.</p> | ||||||||
| 6 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-110 | Identification of person to whom instrument is payable. | <p>(a) The person to whom an instrument is initially payable is determined by the intent of the person, whether or not authorized, signing as, or in the name or behalf of, the issuer of the instrument. The instrument is payable to the person intended by the signer even if that person is identified in the instrument by a name or other identification that is not that of the intended person. If more than one person signs in the name or behalf of the issuer of an instrument and all the signers do not intend the same person as payee, the instrument is payable to any person intended by one or more of the signers.</p><p>(b) If the signature of the issuer of an instrument is made by automated means, such as a check-writing machine, the payee of the instrument is determined by the intent of the person who supplied the name or identification of the payee, whether or not authorized to do so.</p><p>(c) A person to whom an instrument is payable may be identified in any way, including by name, identifying number, office, or account number. For the purpose of determining the holder of an instrument, the following rules apply:</p><p>(1) If an instrument is payable to an account and the account is identified only by number, the instrument is payable to the person to whom the account is payable. If an instrument is payable to an account identified by number and by the name of a person, the instrument is payable to the named person, whether or not that person is the owner of the account identified by number.</p><p>(2) If an instrument is payable to:</p><p>(i) a trust, an estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;</p><p>(ii) a person described as agent or similar representative of a named or identified person, the instrument is payable to the represented person, the representative, or a successor of the representative;</p><p>(iii) a fund or organization that is not a legal entity, the instrument is payable to a representative of the members of the fund or organization; or</p><p>(iv) an office or to a person described as holding an office, the instrument is payable to the named person, the incumbent of the office, or a successor to the incumbent.</p><p>(d) If an instrument is payable to two or more persons alternatively, it is payable to any of them and may be negotiated, discharged, or enforced by any or all of them in possession of the instrument. If an instrument is payable to two or more persons not alternatively, it is payable to all of them and may be negotiated, discharged, or enforced only by all of them. If an instrument payable to two or more persons is ambiguous as to whether it is payable to the persons alternatively, the instrument is payable to the persons alternatively.</p><p>Code 1950, §§ 6-360, 6-393, 6-394; 1964, c. 219, §§ 8.3-110, 8.3-116, 8.3-117; 1966, c. 393; 1992, c. 693.</p> | ||||||||
| 7 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-111 | Place of payment. | <p>Except as otherwise provided for items in Title 8.4, an instrument is payable at the place of payment stated in the instrument. If no place of payment is stated, an instrument is payable at the address of the drawee or maker stated in the instrument. If no address is stated, the place of payment is the place of business of the drawee or maker. If a drawee or maker has more than one place of business, the place of payment is any place of business of the drawee or maker chosen by the person entitled to enforce the instrument. If the drawee or maker has no place of business, the place of payment is the residence of the drawee or maker.</p><p>1964, c. 219, § 8.3-501; 1992, c. 693.</p> | ||||||||
| 8 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-112 | Interest. | <p>(a) Unless otherwise provided in the instrument, (i) an instrument is not payable with interest, and (ii) interest on an interest-bearing instrument is payable from the date of the instrument.</p><p>(b) Interest may be stated in an instrument as a fixed or variable amount of money, or it may be expressed as a fixed or variable rate or rates. The amount or rate of interest may be stated or described in the instrument in any manner and may require reference to information not contained in the instrument. If an instrument provides for interest, but the amount of interest payable cannot be ascertained from the description, interest is payable at the judgment rate in effect at the place of payment of the instrument and at the time interest first accrues.</p><p>Code 1950, §§ 6-369, 6-420; 1964, c. 219, § 8.3-118; 1992, c. 693.</p> | ||||||||
| 9 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-113 | Date of instrument. | <p>(a) An instrument may be antedated or postdated. The date stated determines the time of payment if the instrument is payable at a fixed period after date. Except as provided in § <a href='http://law.lis.virginia.gov/vacode/8.4-401/'>8.4-401</a> (c), an instrument payable on demand is not payable before the date of the instrument.</p><p>(b) If an instrument is undated, its date is the date of its issue or, in the case of an unissued instrument, the date it first comes into possession of a holder.</p><p>Code 1950, §§ 6-358, 6-363, 6-364, 3-369; 1964, c. 219, § 8.3-114; 1992, c. 693.</p> | ||||||||
| 10 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-114 | Contradictory terms of instrument. | <p>If an instrument contains contradictory terms, typewritten terms prevail over printed terms, handwritten terms prevail over both, and words prevail over numbers.</p><p>Code 1950, §§ 6-369, 6-420; 1964, c. 219, § 8.3-118; 1992, c. 693.</p> | ||||||||
| 11 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-116 | Joint and several liability; contribution. | <p>(a) Except as otherwise provided in the instrument, two or more persons who have the same liability on an instrument as makers, drawers, acceptors, endorsers who endorse as joint payees, or anomalous endorsers are jointly and severally liable in the capacity in which they sign.</p><p>(b) Except as provided in § <a href='http://law.lis.virginia.gov/vacode/8.3A-419/'>8.3A-419</a> (e) or by agreement of the affected parties, a party having joint and several liability who pays the instrument is entitled to receive from any party having the same joint and several liability contribution in accordance with applicable law.</p><p>(c) Discharge of one party having joint and several liability by a person entitled to enforce the instrument does not affect the right under subsection (b) of a party having the same joint and several liability to receive contribution from the party discharged.</p><p>Code 1950, § 6-393; 1964, c. 219, § 8.3-118; 1992, c. 693.</p> | ||||||||
| 12 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-117 | Other agreements affecting instrument. | <p>Subject to applicable law regarding exclusion of proof of contemporaneous or previous agreements, the obligation of a party to an instrument to pay the instrument may be modified, supplemented, or nullified by a separate agreement of the obligor and a person entitled to enforce the instrument, if the instrument is issued or the obligation is incurred in reliance on the agreement or as part of the same transaction giving rise to the agreement. To the extent an obligation is modified, supplemented, or nullified by an agreement under this section, the agreement is a defense to the obligation.</p><p>1964, c. 219, § 8.3-119; 1992, c. 693.</p> | ||||||||
| 13 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-118 | Statute of limitations. | <p>(a) Except as provided in subsection (e), an action to enforce the obligation of a party to pay a note payable at a definite time must be commenced within six years after the due date or dates stated in the note or, if a due date is accelerated, within six years after the accelerated due date.</p><p>(b) Except as provided in subsection (d) or (e), if demand for payment is made to the maker of a note payable on demand, an action to enforce the obligation of a party to pay the note must be commenced within six years after the demand. If no demand for payment is made to the maker, an action to enforce the note is barred if neither principal nor interest on the note has been paid for a continuous period of ten years.</p><p>(c) Except as provided in subsection (d), an action to enforce the obligation of a party to an unaccepted draft to pay the draft must be commenced within three years after dishonor of the draft or ten years after the date of the draft, whichever period expires first.</p><p>(d) An action to enforce the obligation of the acceptor of a certified check or the issuer of a teller's check, cashier's check, or traveler's check must be commenced within three years after demand for payment is made to the acceptor or issuer, as the case may be.</p><p>(e) An action to enforce the obligation of a party to a certificate of deposit to pay the instrument must be commenced within six years after demand for payment is made to the maker, but if the instrument states a due date and the maker is not required to pay before that date, the six-year period begins when a demand for payment is in effect and the due date has passed.</p><p>(f) An action to enforce the obligation of a party to pay an accepted draft, other than a certified check, must be commenced (i) within six years after the due date or dates stated in the draft or acceptance if the obligation of the acceptor is payable at a definite time, or (ii) within six years after the date of the acceptance if the obligation of the acceptor is payable on demand.</p><p>(g) Unless governed by other law regarding claims for indemnity or contribution, an action (i) for conversion of an instrument, for money had and received, or like action based on conversion, (ii) for breach of warranty, or (iii) to enforce an obligation, duty, or right arising under this title and not governed by this section must be commenced within three years after the cause of action accrues.</p><p>(h) Notwithstanding the provisions of § <a href='http://law.lis.virginia.gov/vacode/8.01-246/'>8.01-246</a>, this section shall apply to negotiable and non-negotiable notes and certificates of deposit.</p><p>1992, c. 693; 2017, cc. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?171+ful+CHAP0083'>83</a>, <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?171+ful+CHAP0640'>640</a>.</p> | ||||||||
| 14 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-118.1 | Statute of limitations on deposit accounts and certificates of deposit. | <p>A. An action to enforce the obligations of a bank to pay all or part of the balance of a deposit account or certificate of deposit (collectively, a deposit) must be commenced within six years after the earlier of the following:</p><p>(1) If the deposit is a certificate of deposit to which subsection (e) of § <a href='http://law.lis.virginia.gov/vacode/8.3A-118/'>8.3A-118</a> applies, the date the six-year limitations period begins to run under subsection (e) of § <a href='http://law.lis.virginia.gov/vacode/8.3A-118/'>8.3A-118</a>; or</p><p>(2) The later of:</p><p>(A) The due date of the deposit indicated in the bank's last written notice of renewal;</p><p>(B) The date of the last written communication from the bank recognizing the bank's obligation with respect to the deposit; or</p><p>(C) The last day of the taxable year for which the owner of the deposit or the bank last reported interest income earned on the deposit for federal or state income tax purposes.</p><p>B. This section shall apply to negotiable and non-negotiable certificates of deposit.</p><p>2006, c. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?061+ful+CHAP0624'>624</a>; 2010, c. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?101+ful+CHAP0747'>747</a>; 2017, cc. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?171+ful+CHAP0083'>83</a>, <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?171+ful+CHAP0640'>640</a>.</p> | ||||||||
| 15 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 1 | GENERAL PROVISIONS AND DEFINITIONS | § 8.3A-119 | Notice of right to defend action. | <p>In an action for breach of an obligation for which a third person is answerable over pursuant to this title or Title 8.4, the defendant may give the third person written notice of the litigation, and the person notified may then give similar notice to any other person who is answerable over. If the notice states (i) that the person notified may come in and defend and (ii) that failure to do so will bind the person notified in an action later brought by the person giving the notice as to any determination of fact common to the two litigations, the person notified is so bound unless after seasonable receipt of the notice the person notified does come in and defend.</p><p>1964, c. 219, § 8.3-803; 1992, c. 693.</p> | ||||||||
| 16 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 2 | NEGOTIATION, TRANSFER, AND ENDORSEMENT | § 8.3A-202 | Negotiation subject to rescission. | <p>(a) Negotiation is effective even if obtained (i) from an infant, a corporation exceeding its powers, or a person without capacity, (ii) by fraud, duress, or mistake, or (iii) in breach of duty or as part of an illegal transaction.</p><p>(b) To the extent permitted by other law, negotiation may be rescinded or may be subject to other remedies, but those remedies may not be asserted against a subsequent holder in due course or a person paying the instrument in good faith and without knowledge of facts that are a basis for rescission or other remedy.</p><p>Code 1950, § 6-374; 1964, c. 219, § 8.3-207; 1992, c. 693.</p> | ||||||||
| 17 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 2 | NEGOTIATION, TRANSFER, AND ENDORSEMENT | § 8.3A-203 | Transfer of instrument; rights acquired by transfer. | <p>(a) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument.</p><p>(b) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee cannot acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument.</p><p>(c) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of endorsement by the transferor, the transferee has a specifically enforceable right to the unqualified endorsement of the transferor, but negotiation of the instrument does not occur until the endorsement is made.</p><p>(d) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this title and has only the rights of a partial assignee.</p><p>Code 1950, §§ 6-379, 6-382 through 6-384, 6-401, 6-410; 1964, c. 219, §§ 8.3-201, 8.3-202; 1992, c. 693.</p> | ||||||||
| 18 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 2 | NEGOTIATION, TRANSFER, AND ENDORSEMENT | § 8.3A-207 | Reacquisition. | <p>Reacquisition of an instrument occurs if it is transferred to a former holder, by negotiation or otherwise. A former holder who reacquires the instrument may cancel endorsements made after the reacquirer first became a holder of the instrument. If the cancellation causes the instrument to be payable to the reacquirer or to bearer, the reacquirer may negotiate the instrument. An endorser whose endorsement is canceled is discharged, and the discharge is effective against any subsequent holder.</p><p>Code 1950, §§ 6-400, 6-402, 6-474; 1964, c. 219, § 8.3-208; 1992, c. 693.</p> | ||||||||
| 19 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-304 | Overdue instrument. | <p>(a) An instrument payable on demand becomes overdue at the earliest of the following times:</p><p>(1) on the day after the day demand for payment is duly made;</p><p>(2) if the instrument is a check, ninety days after its date; or</p><p>(3) if the instrument is not a check, when the instrument has been outstanding for a period of time after its date which is unreasonably long under the circumstances of the particular case in light of the nature of the instrument and usage of the trade.</p><p>(b) With respect to an instrument payable at a definite time the following rules apply:</p><p>(1) If the principal is payable in installments and a due date has not been accelerated, the instrument becomes overdue upon default under the instrument for nonpayment of an installment, and the instrument remains overdue until the default is cured.</p><p>(2) If the principal is not payable in installments and the due date has not been accelerated, the instrument becomes overdue on the day after the due date.</p><p>(3) If a due date with respect to principal has been accelerated, the instrument becomes overdue on the day after the accelerated due date.</p><p>(c) Unless the due date of principal has been accelerated, an instrument does not become overdue if there is default in payment of interest but no default in payment of principal.</p><p>Code 1950, § 6-408; 1964, c. 219, § 8.3-304; 1992, c. 693.</p> | ||||||||
| 20 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-305 | Defenses and claims in recoupment. | <p>(a) Except as stated in subsection (b), the right to enforce the obligation of a party to pay an instrument is subject to the following:</p><p>(1) a defense of the obligor based on (i) infancy of the obligor to the extent it is a defense to a simple contract, (ii) duress, lack of legal capacity, or illegality of the transaction which, under other law, nullifies the obligation of the obligor, (iii) fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms, or (iv) discharge of the obligor in insolvency proceedings;</p><p>(2) a defense of the obligor stated in another section of this title or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and</p><p>(3) a claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument; but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.</p><p>(b) The right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in subsection (a) (1), but is not subject to defenses of the obligor stated in subsection (a) (2) or claims in recoupment stated in subsection (a) (3) against a person other than the holder.</p><p>(c) Except as stated in subsection (d), in an action to enforce the obligation of a party to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument (§ <a href='http://law.lis.virginia.gov/vacode/8.3A-306/'>8.3A-306</a>) of another person, but the other person's claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.</p><p>(d) In an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (a) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity.</p><p>Code 1950, §§ 6-367, 6-368, 6-380 through 6-409, 6-411; 1964, c. 219, §§ 8.3-305, 8.3-306; 1992, c. 693.</p> | ||||||||
| 21 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-306 | Claims to an instrument. | <p>A person taking an instrument, other than a person having rights of a holder in due course, is subject to a claim of a property or possessory right in the instrument or its proceeds, including a claim to rescind a negotiation and to recover the instrument or its proceeds. A person having rights of a holder in due course takes free of the claim to the instrument.</p><p>Code 1950, §§ 6-367, 6-368, 6-380, 6-409 through 6-411; 1964, c. 219, §§ 8.3-305, 8.3-306; 1992, c. 693.</p> | ||||||||
| 22 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-308 | Proof of signatures and status as holder in due course. | <p>(a) In an action with respect to an instrument, the authenticity of, and authority to make, each signature on the instrument is admitted unless specifically denied in the pleadings. If the validity of a signature is denied in the pleadings, the burden of establishing validity is on the person claiming validity, but the signature is presumed to be authentic and authorized unless the action is to enforce the liability of the purported signer and the signer is dead or incapacitated at the time of trial of the issue of validity of the signature. If an action to enforce the instrument is brought against a person as the undisclosed principal of a person who signed the instrument as a party to the instrument, the plaintiff has the burden of establishing that the defendant is liable on the instrument as a represented person under § <a href='http://law.lis.virginia.gov/vacode/8.3A-402/'>8.3A-402</a> (a).</p><p>(b) If the validity of signatures is admitted or proved and there is compliance with subsection (a), a plaintiff producing the instrument is entitled to payment if the plaintiff proves entitlement to enforce the instrument under § <a href='http://law.lis.virginia.gov/vacode/8.3A-301/'>8.3A-301</a>, unless the defendant proves a defense or claim in recoupment. If a defense or claim in recoupment is proved, the right to payment of the plaintiff is subject to the defense or claim, except to the extent the plaintiff proves that the plaintiff has rights of a holder in due course which are not subject to the defense or claim.</p><p>Code 1950, § 6-411; 1964, c. 219, § 8.3-307; 1992, c. 693; 1997, c. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?971+ful+CHAP0801'>801</a>.</p> | ||||||||
| 23 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-309 | Enforcement of lost, destroyed, or stolen instrument. | <p>(a) A person not in possession of an instrument is entitled to enforce the instrument if (i) the person was in possession of the instrument and entitled to enforce it when loss of possession occurred, (ii) the loss of possession was not the result of a transfer by the person or a lawful seizure, and (iii) the person cannot reasonably obtain possession of the instrument because the instrument was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.</p><p>(b) A person seeking enforcement of an instrument under subsection (a) must prove the terms of the instrument and the person's right to enforce the instrument. If that proof is made, § <a href='http://law.lis.virginia.gov/vacode/8.3A-308/'>8.3A-308</a> applies to the case as if the person seeking enforcement had produced the instrument. The court may not enter judgment in favor of the person seeking enforcement unless it finds that the person required to pay the instrument is adequately protected against loss that might occur by reason of a claim by another person to enforce the instrument. Adequate protection may be provided by any reasonable means.</p><p>1964, c. 219, § 8.3-804; 1992, c. 693.</p> | ||||||||
| 24 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-310 | Effect of instrument on obligation for which taken. | <p>(a) Unless otherwise agreed, if a certified check, cashier's check, or teller's check is taken for an obligation, the obligation is discharged to the same extent discharge would result if an amount of money equal to the amount of the instrument were taken in payment of the obligation. Discharge of the obligation does not affect any liability that the obligor may have as an endorser of the instrument.</p><p>(b) Unless otherwise agreed and except as provided in subsection (a), if a note or an uncertified check is taken for an obligation, the obligation is suspended to the same extent the obligation would be discharged if an amount of money equal to the amount of the instrument were taken, and the following rules apply:</p><p>(1) In the case of an uncertified check, suspension of the obligation continues until dishonor of the check or until it is paid or certified. Payment or certification of the check results in discharge of the obligation to the extent of the amount of the check.</p><p>(2) In the case of a note, suspension of the obligation continues until dishonor of the note or until it is paid. Payment of the note results in discharge of the obligation to the extent of the payment.</p><p>(3) Except as provided in paragraph (4), if the check or note is dishonored and the obligee of the obligation for which the instrument was taken is the person entitled to enforce the instrument, the obligee may enforce either the instrument or the obligation. In the case of an instrument of a third person which is negotiated to the obligee by the obligor, discharge of the obligor on the instrument also discharges the obligation.</p><p>(4) If the person entitled to enforce the instrument taken for an obligation is a person other than the obligee, the obligee may not enforce the obligation to the extent the obligation is suspended. If the obligee is the person entitled to enforce the instrument but no longer has possession of it because it was lost, stolen, or destroyed, the obligation may not be enforced to the extent of the amount payable on the instrument, and to that extent the obligee's rights against the obligor are limited to enforcement of the instrument.</p><p>(c) If an instrument other than one described in subsection (a) or (b) is taken for an obligation, the effect is (i) that stated in subsection (a) if the instrument is one on which a bank is liable as maker or acceptor, or (ii) that stated in subsection (b) in any other case.</p><p>1964, c. 219, § 8.3-802; 1992, c. 693.</p> | ||||||||
| 25 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 3 | ENFORCEMENT OF INSTRUMENTS | § 8.3A-311 | Accord and satisfaction by use of instrument. | <p>(a) If a person against whom a claim is asserted proves that (i) that person in good faith tendered an instrument to the claimant as full satisfaction of the claim, (ii) the amount of the claim was unliquidated or subject to a bona fide dispute, and (iii) the claimant obtained payment of the instrument, the following subsections apply. For purposes of this subsection, a person does not act in good faith when tendering a check in full satisfaction of an obligation under a loan if (i) such check is for less than the amount due under the terms of the loan agreement and (ii) such check is tendered to a person without knowledge of a dispute concerning the loan.</p><p>(b) Unless subsection (c) applies, the claim is discharged if the person against whom the claim is asserted proves that the instrument or an accompanying written communication contained a conspicuous statement to the effect that the instrument was tendered as full satisfaction of the claim.</p><p>(c) Subject to subsection (d), a claim is not discharged under subsection (b) if either of the following applies:</p><p>(1) The claimant, if an organization, proves that (i) within a reasonable time before the tender, the claimant sent a conspicuous statement to the person against whom the claim is asserted that communications concerning disputed debts, including an instrument tendered as full satisfaction of a debt, are to be sent to a designated person, office, or place, and (ii) the instrument or accompanying communication was not received by that designated person, office, or place.</p><p>(2) The claimant, whether or not an organization, proves that within ninety days after payment of the instrument, the claimant tendered repayment of the amount of the instrument to the person against whom the claim is asserted. This paragraph does not apply if the claimant is an organization that sent a statement complying with paragraph (1) (i).</p><p>(d) A claim is discharged if the person against whom the claim is asserted proves that within a reasonable time before collection of the instrument was initiated, the claimant, or an agent of the claimant having direct responsibility with respect to the disputed obligation, knew that the instrument was tendered in full satisfaction of the claim.</p><p>1992, c. 693; 2006, c. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?061+ful+CHAP0624'>624</a>.</p> | ||||||||
| 26 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-401 | Signature. | <p>(a) A person is not liable on an instrument unless (i) the person signed the instrument, or (ii) the person is represented by an agent or representative who signed the instrument and the signature is binding on the represented person under § <a href='http://law.lis.virginia.gov/vacode/8.3A-402/'>8.3A-402</a>.</p><p>(b) A signature may be made (i) manually or by means of a device or machine, and (ii) by the use of any name, including a trade or assumed name, or by a word, mark, or symbol executed or adopted by a person with present intention to authenticate a writing.</p><p>Code 1950, § 6-370; 1964, c. 219, § 8.3-401; 1992, c. 693.</p> | ||||||||
| 27 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-403 | Unauthorized signature. | <p>(a) Unless otherwise provided in this title or Title 8.4, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this title.</p><p>(b) If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking.</p><p>(c) The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this title which makes the unauthorized signature effective for the purposes of this title.</p><p>Code 1950, §§ 6-361, 6-375; 1956, c. 149; 1964, c. 219, §§ 8.3-404, 8.3-405; 1992, c. 693.</p> | ||||||||
| 28 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-404 | Impostors; fictitious payees. | <p>(a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an endorsement of the instrument by any person in the name of the payee is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.</p><p>(b) If (i) a person whose intent determines to whom an instrument is payable (§ <a href='http://law.lis.virginia.gov/vacode/8.3A-110/'>8.3A-110</a> (a) or (b)) does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special endorsement:</p><p>(1) Any person in possession of the instrument is its holder.</p><p>(2) An endorsement by any person in the name of the payee stated in the instrument is effective as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.</p><p>(c) Under subsection (a) or (b), an endorsement is made in the name of a payee if (i) it is made in a name substantially similar to that of the payee or (ii) the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.</p><p>(d) With respect to an instrument to which subsection (a) or (b) applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.</p><p>Code 1950, § 6-361; 1956, c. 149; 1964, c. 219, § 8.3-405; 1992, c. 693.</p> | ||||||||
| 29 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-406 | Negligence contributing to forged signature or alteration of instrument. | <p>(a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.</p><p>(b) Under subsection (a), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.</p><p>(c) Under subsection (a), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (b), the burden of proving failure to exercise ordinary care is on the person precluded.</p><p>1964, c. 219, § 8.3-406; 1992, c. 693.</p> | ||||||||
| 30 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-408 | Drawee not liable on unaccepted draft. | <p>A check or other draft does not of itself operate as an assignment of funds in the hands of the drawee available for its payment, and the drawee is not liable on the instrument until the drawee accepts it.</p><p>Code 1950, §§ 6-480, 6-543; 1964, c. 219, § 8.3-409; 1992, c. 693.</p> | ||||||||
| 31 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-410 | Acceptance varying draft. | <p>(a) If the terms of a drawee's acceptance vary from the terms of the draft as presented, the holder may refuse the acceptance and treat the draft as dishonored. In that case, the drawee may cancel the acceptance.</p><p>(b) The terms of a draft are not varied by an acceptance to pay at a particular bank or place in the United States, unless the acceptance states that the draft is to be paid only at that bank or place.</p><p>(c) If the holder assents to an acceptance varying the terms of a draft, the obligation of each drawer and endorser that does not expressly assent to the acceptance is discharged.</p><p>Code 1950, §§ 6-492 through 6-495; 1964, c. 219, § 8.3-412; 1992, c. 693.</p> | ||||||||
| 32 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-412 | Obligation of issuer of note or cashier's check. | <p>The issuer of a note or cashier's check or other draft drawn on the drawer is obliged to pay the instrument (i) according to its terms at the time it was issued or, if not issued, at the time it first came into possession of a holder, or (ii) if the issuer signed an incomplete instrument, according to its terms when completed, to the extent stated in §§ <a href='http://law.lis.virginia.gov/vacode/8.3A-115/'>8.3A-115</a> and <a href='http://law.lis.virginia.gov/vacode/8.3A-407/'>8.3A-407</a>. The obligation is owed to a person entitled to enforce the instrument or to an endorser who paid the instrument under § <a href='http://law.lis.virginia.gov/vacode/8.3A-415/'>8.3A-415</a>.</p><p>Code 1950, §§ 6-412 through 6-414; 1964, c. 219, § 8.3-413; 1992, c. 693.</p> | ||||||||
| 33 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-416 | Transfer warranties. | <p>(a) A person who transfers an instrument for consideration warrants to the transferee and, if the transfer is by endorsement, to any subsequent transferee that:</p><p>(1) the warrantor is a person entitled to enforce the instrument;</p><p>(2) all signatures on the instrument are authentic and authorized;</p><p>(3) the instrument has not been altered;</p><p>(4) the instrument is not subject to a defense or claim in recoupment of any party which can be asserted against the warrantor; and</p><p>(5) the warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer.</p><p>(b) A person to whom the warranties under subsection (a) are made and who took the instrument in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach.</p><p>(c) The warranties stated in subsection (a) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within thirty days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under subsection (b) is discharged to the extent of any loss caused by the delay in giving notice of the claim.</p><p>(d) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.</p><p>Code 1950, §§ 6-417, 6-421; 1964, c. 219, § 8.3-417; 1992, c. 693.</p> | ||||||||
| 34 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-417 | Presentment warranties. | <p>(a) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, (i) the person obtaining payment or acceptance, at the time of presentment, and (ii) a previous transferor of the draft, at the time of transfer, warrant to the drawee making payment or accepting the draft in good faith that:</p><p>(1) the warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;</p><p>(2) the draft has not been altered; and</p><p>(3) the warrantor has no knowledge that the signature of the drawer of the draft is unauthorized.</p><p>(b) A drawee making payment may recover from any warrantor damages for breach of warranty equal to the amount paid by the drawee less the amount the drawee received or is entitled to receive from the drawer because of the payment. In addition, the drawee is entitled to compensation for expenses and loss of interest resulting from the breach. The right of the drawee to recover damages under this subsection is not affected by any failure of the drawee to exercise ordinary care in making payment. If the drawee accepts the draft, breach of warranty is a defense to the obligation of the acceptor. If the acceptor makes payment with respect to the draft, the acceptor is entitled to recover from any warrantor for breach of warranty the amounts stated in this subsection.</p><p>(c) If a drawee asserts a claim for breach of warranty under subsection (a) based on an unauthorized endorsement of the draft or an alteration of the draft, the warrantor may defend by proving that the endorsement is effective under § <a href='http://law.lis.virginia.gov/vacode/8.3A-404/'>8.3A-404</a> or § <a href='http://law.lis.virginia.gov/vacode/8.3A-405/'>8.3A-405</a> or the drawer is precluded under § <a href='http://law.lis.virginia.gov/vacode/8.3A-406/'>8.3A-406</a> or § <a href='http://law.lis.virginia.gov/vacode/8.4-406/'>8.4-406</a> from asserting against the drawee the unauthorized endorsement or alteration.</p><p>(d) If (i) a dishonored draft is presented for payment to the drawer or an endorser or (ii) any other instrument is presented for payment to a party obliged to pay the instrument, and (iii) payment is received, the following rules apply:</p><p>(1) The person obtaining payment and a prior transferor of the instrument warrant to the person making payment in good faith that the warrantor is, or was, at the time the warrantor transferred the instrument, a person entitled to enforce the instrument or authorized to obtain payment on behalf of a person entitled to enforce the instrument.</p><p>(2) The person making payment may recover from any warrantor for breach of warranty an amount equal to the amount paid plus expenses and loss of interest resulting from the breach.</p><p>(e) The warranties stated in subsections (a) and (d) cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within thirty days after the claimant has reason to know of the breach and the identity of the warrantor, the liability of the warrantor under subsection (b) or (d) is discharged to the extent of any loss caused by the delay in giving notice of the claim.</p><p>(f) A cause of action for breach of warranty under this section accrues when the claimant has reason to know of the breach.</p><p>Code 1950, §§ 6-417, 6-421; 1964, c. 219, § 8.3-417; 1992, c. 693.</p> | ||||||||
| 35 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-418 | Payment or acceptance by mistake. | <p>(a) Except as provided in subsection (c), if the drawee of a draft pays or accepts the draft and the drawee acted on the mistaken belief that (i) payment of the draft had not been stopped pursuant to § <a href='http://law.lis.virginia.gov/vacode/8.4-403/'>8.4-403</a> or (ii) the signature of the drawer of the draft was authorized, the drawee may recover the amount of the draft from the person to whom or for whose benefit payment was made or, in the case of acceptance, may revoke the acceptance. Rights of the drawee under this subsection are not affected by failure of the drawee to exercise ordinary care in paying or accepting the draft.</p><p>(b) Except as provided in subsection (c), if an instrument has been paid or accepted by mistake and the case is not covered by subsection (a), the person paying or accepting may, to the extent permitted by the law governing mistake and restitution, (i) recover the payment from the person to whom or for whose benefit payment was made or (ii) in the case of acceptance, may revoke the acceptance.</p><p>(c) The remedies provided by subsection (a) or (b) may not be asserted against a person who took the instrument in good faith and for value or who in good faith changed position in reliance on the payment or acceptance. This subsection does not limit remedies provided by § <a href='http://law.lis.virginia.gov/vacode/8.3A-417/'>8.3A-417</a> or § <a href='http://law.lis.virginia.gov/vacode/8.4-407/'>8.4-407</a>.</p><p>(d) Notwithstanding § <a href='http://law.lis.virginia.gov/vacode/8.4-213/'>8.4-213</a>, if an instrument is paid or accepted by mistake and the payor or acceptor recovers payment or revokes acceptance under subsection (a) or (b), the instrument is deemed not to have been paid or accepted and is treated as dishonored, and the person from whom payment is recovered has rights as a person entitled to enforce the dishonored instrument.</p><p>Code 1950, § 6-414; 1964, c. 219, § 8.3-418; 1992, c. 693.</p> | ||||||||
| 36 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 4 | LIABILITY OF PARTIES | § 8.3A-420 | Conversion of instrument. | <p>(a) The law applicable to conversion of personal property applies to instruments. An instrument is also converted if it is taken by transfer, other than a negotiation, from a person not entitled to enforce the instrument or a bank makes or obtains payment with respect to the instrument for a person not entitled to enforce the instrument or receive payment. An action for conversion of an instrument may not be brought by (i) the issuer or acceptor of the instrument or (ii) a payee or endorsee who did not receive delivery of the instrument either directly or through delivery to an agent or a co-payee.</p><p>(b) In an action under subsection (a), the measure of liability is presumed to be the amount payable on the instrument, but recovery may not exceed the amount of the plaintiff's interest in the instrument.</p><p>(c) A representative, other than a depositary bank, who has in good faith dealt with an instrument or its proceeds on behalf of one who was not the person entitled to enforce the instrument is not liable in conversion to that person beyond the amount of any proceeds that it has not paid out.</p><p>Code 1950, § 6-490; 1964, c. 219, § 8.3-419; 1992, c. 693.</p> | ||||||||
| 37 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 5 | DISHONOR | § 8.3A-502 | Dishonor. | <p>(a) Dishonor of a note is governed by the following rules:</p><p>(1) If the note is payable on demand, the note is dishonored if presentment is duly made to the maker and the note is not paid on the day of presentment.</p><p>(2) If the note is not payable on demand and is payable at or through a bank or the terms of the note require presentment, the note is dishonored if presentment is duly made and the note is not paid on the day it becomes payable or the day of presentment, whichever is later.</p><p>(3) If the note is not payable on demand and paragraph (2) does not apply, the note is dishonored if it is not paid on the day it becomes payable.</p><p>(b) Dishonor of an unaccepted draft other than a documentary draft is governed by the following rules:</p><p>(1) If a check is duly presented for payment to the payor bank otherwise than for immediate payment over the counter, the check is dishonored if the payor bank makes timely return of the check or sends timely notice of dishonor or nonpayment under § <a href='http://law.lis.virginia.gov/vacode/8.4-301/'>8.4-301</a> or § <a href='http://law.lis.virginia.gov/vacode/8.4-302/'>8.4-302</a>, or becomes accountable for the amount of the check under § <a href='http://law.lis.virginia.gov/vacode/8.4-302/'>8.4-302</a>.</p><p>(2) If a draft is payable on demand and paragraph (1) does not apply, the draft is dishonored if presentment for payment is duly made to the drawee and the draft is not paid on the day of presentment.</p><p>(3) If a draft is payable on a date stated in the draft, the draft is dishonored if (i) presentment for payment is duly made to the drawee and payment is not made on the day the draft becomes payable or the day of presentment, whichever is later, or (ii) presentment for acceptance is duly made before the day the draft becomes payable and the draft is not accepted on the day of presentment.</p><p>(4) If a draft is payable on elapse of a period of time after sight or acceptance, the draft is dishonored if presentment for acceptance is duly made and the draft is not accepted on the day of presentment.</p><p>(c) Dishonor of an unaccepted documentary draft occurs according to the rules stated in subsections (b) (2), (3), and (4), except that payment or acceptance may be delayed without dishonor until no later than the close of the third business day of the drawee following the day on which payment or acceptance is required by those paragraphs.</p><p>(d) Dishonor of an accepted draft is governed by the following rules:</p><p>(1) If the draft is payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor and the draft is not paid on the day of presentment.</p><p>(2) If the draft is not payable on demand, the draft is dishonored if presentment for payment is duly made to the acceptor and payment is not made on the day it becomes payable or the day of presentment, whichever is later.</p><p>(e) In any case in which presentment is otherwise required for dishonor under this section and presentment is excused under § <a href='http://law.lis.virginia.gov/vacode/8.3A-504/'>8.3A-504</a>, dishonor occurs without presentment if the instrument is not duly accepted or paid.</p><p>(f) If a draft is dishonored because timely acceptance of the draft was not made and the person entitled to demand acceptance consents to a late acceptance, from the time of acceptance the draft is treated as never having been dishonored.</p><p>Code 1950, §§ 6-432 through 6-435, 6-436, 6-462, 6-464 through 6-469, 6-471, 6-496, 6-500 through 6-502, 6-505; 1964, c. 219, §§ 8.3-501, 8.3-507, 8.3-511; 1992, c. 693.</p> | ||||||||
| 38 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 5 | DISHONOR | § 8.3A-503 | Notice of dishonor. | <p>(a) The obligation of an endorser stated in § <a href='http://law.lis.virginia.gov/vacode/8.3A-415/'>8.3A-415</a> (a) and the obligation of a drawer stated § <a href='http://law.lis.virginia.gov/vacode/8.3A-414/'>8.3A-414</a> (d) may not be enforced unless (i) the endorser or drawer is given notice of dishonor of the instrument complying with this section or (ii) notice of dishonor is excused under § <a href='http://law.lis.virginia.gov/vacode/8.3A-504/'>8.3A-504</a> (b).</p><p>(b) Notice of dishonor may be given by any person; may be given by any commercially reasonable means, including an oral, written, or electronic communication; and is sufficient if it reasonably identifies the instrument and indicates that the instrument has been dishonored or has not been paid or accepted. Return of an instrument given to a bank for collection is sufficient notice of dishonor.</p><p>(c) Subject to § <a href='http://law.lis.virginia.gov/vacode/8.3A-504/'>8.3A-504</a> (c), with respect to an instrument taken for collection by a collecting bank, notice of dishonor must be given (i) by the bank before midnight of the next banking day following the banking day on which the bank receives notice of dishonor of the instrument, or (ii) by any other person within thirty days following the day on which the person receives notice of dishonor. With respect to any other instrument, notice of dishonor must be given within thirty days following the day on which dishonor occurs.</p><p>Code 1950, §§ 6-443 through 6-461, 6-471, 6-496, 6-505; 1964, c. 219, §§ 8.3-501, 8.3-508; 1992, c. 693.</p> | ||||||||
| 39 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 5 | DISHONOR | § 8.3A-504 | Excused presentment and notice of dishonor. | <p>(a) Presentment for payment or acceptance of an instrument is excused if (i) the person entitled to present the instrument cannot with reasonable diligence make presentment, (ii) the maker or acceptor has repudiated an obligation to pay the instrument or is dead or in insolvency proceedings, (iii) by the terms of the instrument presentment is not necessary to enforce the obligation of endorsers or the drawer, (iv) the drawer or endorser whose obligation is being enforced has waived presentment or otherwise has no reason to expect or right to require that the instrument be paid or accepted, or (v) the drawer instructed the drawee not to pay or accept the draft or the drawee was not obligated to the drawer to pay the draft.</p><p>(b) Notice of dishonor is excused if (i) by the terms of the instrument notice of dishonor is not necessary to enforce the obligation of a party to pay the instrument, or (ii) the party whose obligation is being enforced waived notice of dishonor. A waiver of presentment is also a waiver of notice of dishonor.</p><p>(c) Delay in giving notice of dishonor is excused if the delay was caused by circumstances beyond the control of the person giving the notice and the person giving the notice exercised reasonable diligence after the cause of the delay ceased to operate.</p><p>Code 1950, §§ 6-432 through 6-435, 6-462, 6-464 through 6-469, 6-500, 6-501; 1964, c. 219, § 8.3-511; 1992, c. 693.</p> | ||||||||
| 40 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 5 | DISHONOR | § 8.3A-505 | Evidence of dishonor. | <p>(a) The following are admissible as evidence and create a presumption of dishonor and of any notice of dishonor stated:</p><p>(1) a document regular in form as provided in subsection (b) which purports to be a protest;</p><p>(2) a purported stamp or writing of the drawee, payor bank, or presenting bank on or accompanying the instrument stating that acceptance or payment has been refused unless reasons for the refusal are stated and the reasons are not consistent with dishonor;</p><p>(3) a book or record of the drawee, payor bank, or collecting bank, kept in the usual course of business which shows dishonor, even if there is no evidence of who made the entry.</p><p>(b) A protest is a certificate of dishonor made by a United States consul or vice-consul, or a notary public or other person authorized to administer oaths by the law of the place where dishonor occurs. It may be made upon information satisfactory to that person. The protest must identify the instrument and certify either that presentment has been made or, if not made, the reason why it was not made, and that the instrument has been dishonored by nonacceptance or nonpayment. The protest may also certify that notice of dishonor has been given to some or all parties.</p><p>Code 1950, §§ 6-506 through 6-509, 6-511, 6-513; 1964, c. 219, §§ 8.3-509, 8.3-510; 1992, c. 693.</p> | ||||||||
| 41 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 6 | DISCHARGE AND PAYMENT | § 8.3A-601 | Discharge and effect of discharge. | <p>(a) The obligation of a party to pay the instrument is discharged as stated in this title or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.</p><p>(b) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge.</p><p>Code 1950, §§ 6-367, 6-368, 6-409, 6-472 through 6-474; 1964, c. 219, §§ 8.3-305, 8.3-601, 8.3-602; 1992, c. 693.</p> | ||||||||
| 42 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 6 | DISCHARGE AND PAYMENT | § 8.3A-602 | Payment. | <p>(a) Subject to subsection (b), an instrument is paid to the extent payment is made (i) by or on behalf of a party obliged to pay the instrument, and (ii) to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under § <a href='http://law.lis.virginia.gov/vacode/8.3A-306/'>8.3A-306</a> by another person.</p><p>(b) The obligation of a party to pay the instrument is not discharged under subsection (a) if:</p><p>(1) a claim to the instrument under § <a href='http://law.lis.virginia.gov/vacode/8.3A-306/'>8.3A-306</a> is enforceable against the party receiving payment and (i) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or (ii) in the case of an instrument other than a cashier's check, teller's check, or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or</p><p>(2) the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument.</p><p>(c) Within 90 days following payment in full of the obligation represented by an instrument, the holder of the instrument shall return it to the maker or his agent, unless it no longer is in existence. If the instrument no longer is in existence, upon request from the maker or his agent, the holder shall give written confirmation that the instrument no longer is in existence and the obligation has been paid in full, within 90 days of such request. In such event the holder shall be deemed to have satisfied its obligation under this subsection.</p><p>Code 1950, §§ 6-403, 6-472, 6-473, 6-524 through 6-530; 1964, c. 219, § 8.3-603; 1992, c. 693; 2003, c. <a href='http://lis.virginia.gov/cgi-bin/legp604.exe?031+ful+CHAP0342'>342</a>.</p> | ||||||||
| 43 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 6 | DISCHARGE AND PAYMENT | § 8.3A-603 | Tender of payment. | <p>(a) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract.</p><p>(b) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an endorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates.</p><p>(c) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.</p><p>Code 1950, §§ 6-423, 6-473; 1964, c. 219, § 8.3-604; 1992, c. 693.</p> | ||||||||
| 44 | 8.3A | COMMERCIAL CODE — NEGOTIABLE INSTRUMENTS | 6 | DISCHARGE AND PAYMENT | § 8.3A-604 | Discharge by cancellation or renunciation. | <p>(a) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument (i) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party's signature, or the addition of words to the instrument indicating discharge, or (ii) by agreeing not to sue or otherwise renouncing rights against the party by a signed writing.</p><p>(b) Cancellation or striking out of an endorsement pursuant to subsection (a) does not affect the status and rights of a party derived from the endorsement.</p><p>Code 1950, §§ 6-400, 6-472, 6-475, 6-476; 1964, c. 219, § 8.3-605; 1992, c. 693.</p> |