Virginia § 8.4-205.1 Depositary bank holder of unendorsed item

Virginia Statutes

§ 8.4-205.1 — Depositary bank holder of unendorsed item

Virginia § 8.4-205.1

Title 8.4COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS

Part 2COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS

This text of Virginia § 8.4-205.1 (Depositary bank holder of unendorsed item) is published on Counsel Stack Legal Research, covering Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Va. Code Ann. § 8.4-205.1 (2026).

Text

If a customer delivers an item to a depositary bank for collection:

(1)the depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of the delivery was a holder of the item, whether or not the customer endorses the item, and, if the bank satisfies the other requirements of § 8.3A-302, it is a holder in due course; and

(2)the depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.

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If a customer delivers an item to a depositary bank for collection:

(1) the depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of the delivery was a holder of the item, whether or not the customer endorses the item, and, if the bank satisfies the other requirements of § 8.3A-302, it is a holder in due course; and

(2) the depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer's account.