CHAPTER 48

AN ACT to amend and reenact § 6-543.1 of the Code of 1950 by
revising § 6-548.1 and adding two sections numbered
6-548.2 and 6-548.3, relating to the collection, payment and
dishonor of demand items by banks and the revocation of
credit for, and payment of, such items.

[H 81 ]

Approved February 23, 1950

Be it enacted by the General Assembly of Virginia:

1. That § 6-543.1 of the Code of 1950 be amended and re-
enacted by revising § 6-543.1 and adding two sections numbered
6-543.2 and 6-543.3, as follows:

§ 6-543.1. * Collection, payment and dishonor of demand
items; when credit may be revoked.—In any case in which a
bank receives, other than for immediate payment over the coun-
ter, a demand item payable by, at or through such bank and
gives credit therefor before midnight of the day of receipt, the
bank may have until midnight of its next business day after
receipt within which to dishonor or refuse payment of such
item. Any credit so given, together with all related entries on
the books of the receiving bank, may be revoked by returning
the item, or if the item is held for protest or at the time is lost
or is not in the possession of the bank, by giving written notice
of dishonor, nonpayment, or revocation; provided that such item
or notice is dispatched in the mails or by other expeditious
means not later than midnight of the bank’s next business day
after the item was received. For the purpose of determining
when notice of dishonor must be given or protest made under
the law relative to negotiable instruments, an item duly pre-
sented credit for which is revoked as authorized by this section,
shall be deemed dishonored on the day the item or notice is dis-
patched. A bank, revoking credit pursuant to the authority of
this section, is entitled to refund of, or credit for, the amount of
the item.

§ 6-548.2. The meaning of certain terms.—For the pur-
poses of the foregoing section: (a) An item received by a bank
on a day other than its business day, or received on a business
cay after its regular business hours or during afternoon or eve-
ning periods when it has reopened or remained open for limited
functions, shall be deemed to have been received at the opening
of its next business day; (b) The term “credit” includes payment,
remittance, advice of credit, or authorization to charge and, in
cases where the item is received for deposit as well as for pay-
ment, also includes the making of appropriate entries to the
receiving bank’s general ledger without regard to whether the
item is posted to individual customers’ ledgers; and (c) Each
branch or office of a bank shall be deemed a separate bank.

§ 6-543.8. The effect of agreement.—The effect of the fore-
going two sections may be varied by agreement.