{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/8.4-214.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/8.4-214.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/8.4-214.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/8.4-214.html"}],"law_id":378188,"edition_id":2,"section_id":378188,"structure_id":53739,"section_number":"8.4-214","catch_line":"Insolvency and preference","history":"Code 1950, \u00a7 6-63; 1964, c. 219; 1992, c. 693.","full_text":"a\n\nIf an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank’s customer.\n\nb\n\nIf a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.\n\nc\n\nIf a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement’s becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.\n\nd\n\nIf a collecting bank receives from subsequent parties settlement for an item which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.\n\n","order_by":null,"text":{"0":{"id":1410850,"text":"If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank’s customer.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":1410851,"text":"If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":1410852,"text":"If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement’s becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":1410853,"text":"If a collecting bank receives from subsequent parties settlement for an item which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c"}},"ancestry":[{"id":53739,"edition_id":2,"name":"Collection of Items: Depositary and Collecting Banks","identifier":"2","label":"part","depth":2,"order_by":2,"parent_id":53737,"metadata":{"child_laws":19,"child_structures":0},"date_created":"2026-08-02 03:21:28","date_modified":"2026-08-02 12:28:32","permalink":{"id":1510049,"object_type":"structure","relational_id":53739,"identifier":"2","token":"8.4\/2","url":"\/8.4\/2\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53737,"edition_id":2,"name":"Commercial Code \u2014 Bank Deposits and Collections","identifier":"8.4","label":"title","depth":1,"order_by":21,"parent_id":null,"metadata":{"child_laws":45,"child_structures":5},"date_created":"2026-08-02 03:21:27","date_modified":"2026-08-02 12:28:32","permalink":{"id":1509997,"object_type":"structure","relational_id":53737,"identifier":"8.4","token":"8.4","url":"\/8.4\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":378170,"structure_id":53739,"section_number":"8.4-201","catch_line":"Status of collecting bank as agent and provisional status of credits; applicability of title; item endorsed \"pay any bank.\"","url":"\/8.4-201\/","token":"8.4\/2\/8.4-201","metadata":false},{"id":378171,"structure_id":53739,"section_number":"8.4-202","catch_line":"Responsibility for collection or return; when action timely","url":"\/8.4-202\/","token":"8.4\/2\/8.4-202","metadata":false},{"id":378172,"structure_id":53739,"section_number":"8.4-203","catch_line":"Effect of instructions","url":"\/8.4-203\/","token":"8.4\/2\/8.4-203","metadata":false},{"id":378173,"structure_id":53739,"section_number":"8.4-204","catch_line":"Methods of sending and presenting; sending directly to payor bank","url":"\/8.4-204\/","token":"8.4\/2\/8.4-204","metadata":false},{"id":378175,"structure_id":53739,"section_number":"8.4-205","catch_line":"Repealed","url":"\/8.4-205\/","token":"8.4\/2\/8.4-205","metadata":false},{"id":378174,"structure_id":53739,"section_number":"8.4-205.1","catch_line":"Depositary bank holder of unendorsed item","url":"\/8.4-205.1\/","token":"8.4\/2\/8.4-205.1","metadata":false},{"id":378176,"structure_id":53739,"section_number":"8.4-206","catch_line":"Transfer between banks","url":"\/8.4-206\/","token":"8.4\/2\/8.4-206","metadata":false},{"id":378180,"structure_id":53739,"section_number":"8.4-207","catch_line":"Repealed","url":"\/8.4-207\/","token":"8.4\/2\/8.4-207","metadata":false},{"id":378177,"structure_id":53739,"section_number":"8.4-207.1","catch_line":"Transfer warranties","url":"\/8.4-207.1\/","token":"8.4\/2\/8.4-207.1","metadata":false},{"id":378178,"structure_id":53739,"section_number":"8.4-207.2","catch_line":"Presentment warranties","url":"\/8.4-207.2\/","token":"8.4\/2\/8.4-207.2","metadata":false},{"id":378179,"structure_id":53739,"section_number":"8.4-207.3","catch_line":"Encoding and retention warranties","url":"\/8.4-207.3\/","token":"8.4\/2\/8.4-207.3","metadata":false},{"id":378181,"structure_id":53739,"section_number":"8.4-208","catch_line":"Security interest of collecting bank in items, accompanying documents and proceeds","url":"\/8.4-208\/","token":"8.4\/2\/8.4-208","metadata":false},{"id":378182,"structure_id":53739,"section_number":"8.4-209","catch_line":"When bank gives value for purposes of holder in due course","url":"\/8.4-209\/","token":"8.4\/2\/8.4-209","metadata":false},{"id":378183,"structure_id":53739,"section_number":"8.4-210","catch_line":"Presentment by notice of item not payable by, through or at a bank; liability of drawer or endorser","url":"\/8.4-210\/","token":"8.4\/2\/8.4-210","metadata":false},{"id":378185,"structure_id":53739,"section_number":"8.4-211","catch_line":"Repealed","url":"\/8.4-211\/","token":"8.4\/2\/8.4-211","metadata":false},{"id":378184,"structure_id":53739,"section_number":"8.4-211.1","catch_line":"Medium and time of settlement by bank","url":"\/8.4-211.1\/","token":"8.4\/2\/8.4-211.1","metadata":false},{"id":378186,"structure_id":53739,"section_number":"8.4-212","catch_line":"Right of charge-back or refund; liability of collecting banks; return of item","url":"\/8.4-212\/","token":"8.4\/2\/8.4-212","metadata":false},{"id":378187,"structure_id":53739,"section_number":"8.4-213","catch_line":"Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal","url":"\/8.4-213\/","token":"8.4\/2\/8.4-213","metadata":false},{"id":378188,"structure_id":53739,"section_number":"8.4-214","catch_line":"Insolvency and preference","url":"\/8.4-214\/","token":"8.4\/2\/8.4-214","metadata":false}],"previous_section":{"id":378187,"structure_id":53739,"section_number":"8.4-213","catch_line":"Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal","url":"\/8.4-213\/","token":"8.4\/2\/8.4-213","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-214\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1964, chapter 219; in 1992, chapter 693.<\/p>","references":false,"refers_to":false,"permalink":{"id":1510123,"object_type":"law","relational_id":378188,"identifier":"8.4-214","token":"8.4\/2\/8.4-214","url":"\/8.4-214\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/8.4-214\/","token":"8.4\/2\/8.4-214","dublin_core":{"Title":"Insolvency and preference","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-214","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> If an item is in or comes into the possession<\/span> of a payor or collecting bank<\/span> that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank<\/span> or the closed bank’s customer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> If a payor bank<\/span> finally pays an item and suspends payments without making a settlement<\/span> for the item with its customer or the presenting bank<\/span> which settlement<\/span> is or becomes final, the owner of the item has a preferred claim against the payor bank<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If a payor bank<\/span> gives or a collecting bank<\/span> gives or receives a provisional settlement<\/span> for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement<\/span>’s becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> If a collecting bank<\/span> receives from subsequent parties settlement<\/span> for an item which settlement<\/span> is or becomes final and the bank suspends payments without making a settlement<\/span> for the item with its customer which settlement<\/span> is or becomes final, the owner of the item has a preferred claim against the collecting bank<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nINSOLVENCY AND PREFERENCE (\u00a7 8.4-214)\n\na. If an item is in or comes into the possession of a payor or collecting bank\nthat suspends payment and the item has not been finally paid, the item must be\nreturned by the receiver, trustee, or agent in charge of the closed bank to the\npresenting bank or the closed bank’s customer.\n\nb. If a payor bank finally pays an item and suspends payments without making a\nsettlement for the item with its customer or the presenting bank which\nsettlement is or becomes final, the owner of the item has a preferred claim\nagainst the payor bank.\n\nc. If a payor bank gives or a collecting bank gives or receives a provisional\nsettlement for an item and thereafter suspends payments, the suspension does not\nprevent or interfere with the settlement’s becoming final if the finality\noccurs automatically upon the lapse of certain time or the happening of certain\nevents.\n\nd. If a collecting bank receives from subsequent parties settlement for an item\nwhich settlement is or becomes final and the bank suspends payments without\nmaking a settlement for the item with its customer which settlement is or\nbecomes final, the owner of the item has a preferred claim against the\ncollecting bank.\n\nHISTORY: Code 1950, \u00a7 6-63; 1964, c. 219; 1992, c. 693.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}