State Codes and Statutes
Statutes > Virginia > Title-8-4a > Part-4 > 8-4a-404§ 8.4A-404. Obligation of beneficiary's bank to pay and give notice tobeneficiary.
(a) Subject to subsection (e) of § 8.4A-211, and subsections (d) and (e) of §8.4A-405, if a beneficiary's bank accepts a payment order, the bank isobliged to pay the amount of the order to the beneficiary of the order.Payment is due on the payment date of the order, but if acceptance occurs onthe payment date after the close of the funds-transfer business day of thebank, payment is due on the next funds-transfer business day. If the bankrefuses to pay after demand by the beneficiary and receipt of notice ofparticular circumstances that will give rise to consequential damages as aresult of nonpayment, the beneficiary may receive damages resulting from therefusal to pay to the extent the bank had notice of the damages, unless thebank proves that it did not pay because of a reasonable doubt concerning theright of the beneficiary to payment.
(b) If a payment order accepted by the beneficiary's bank instructs paymentto an account of the beneficiary, the bank is obliged to notify thebeneficiary of receipt of the order before midnight of the nextfunds-transfer business day following the payment date. If the payment orderdoes not instruct payment to an account of the beneficiary, the bank isrequired to notify the beneficiary only if notice is required by the order.Notice may be given by first class mail or any other means reasonable in thecircumstances. If the bank fails to give the required notice, the bank isobliged to pay interest to the beneficiary on the amount of the payment orderfrom the day notice should have been given until the day the beneficiarylearned of receipt of the payment order by the bank. No other damages arerecoverable. Reasonable attorney's fees are also recoverable if demand forinterest is made and refused before an action is brought on the claim.
(c) The right of a beneficiary to receive payment and damages as stated insubsection (a) of this section may not be varied by agreement or afunds-transfer system rule. The right of a beneficiary to be notified asstated in subsection (b) of this section may be varied by agreement of thebeneficiary or by a funds-transfer system rule if the beneficiary is notifiedof the rule before initiation of the funds transfer.
(1990, c. 9.)
