Virginia § 8.4-503 Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need

Virginia Statutes

§ 8.4-503 — Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need

Virginia § 8.4-503

Title 8.4COMMERCIAL CODE — BANK DEPOSITS AND COLLECTIONS

Part 5COLLECTION OF DOCUMENTARY DRAFTS

This text of Virginia § 8.4-503 (Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need) 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. § 8.4-503 (2026).

Text

Unless otherwise instructed and except as provided in Title 8.5A, a bank presenting a documentary draft:

(1)must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and

(2)upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated in the draft or if the presenting bank does not choose to utilize the referee's services, it must use diligence and good faith to ascertain the reason for dishonor, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor and must request instructions. However, the presenting bank is under no obligation

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Unless otherwise instructed and except as provided in Title 8.5A, a bank presenting a documentary draft:

(1) must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and

(2) upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated in the draft or if the presenting bank does not choose to utilize the referee's services, it must use diligence and good faith to ascertain the reason for dishonor, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor and must request instructions.

However, the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received; it has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses.