Code of Virginia § 6.2-883. Acceptance of drafts or bills of exchange; issuance of letters of credit.
178 words·~1 min read·
/va/title-6-2/chapter-8/6-2-883A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
A. Any bank doing business in the Commonwealth, subject to conditions, limitations, and restrictions imposed by the Commission, may
(i)accept for payment at a future date drafts or bills of exchange drawn upon it by its customers on time not exceeding six months and
(ii)issue letters of credit, upon such terms and conditions and of such duration as may be deemed appropriate by such bank, that authorize the holders thereof to draw drafts upon it or its correspondent, which drafts may be payable at sight or may be accepted for payment from the date of presentment on time not exceeding six months.
B. The Commission, in adopting conditions, limitations, and restrictions with respect to such acceptances or letters of credit, shall use as a standard or guide the respective conditions, limitations, and restrictions, if any, imposed from time to time by federal statute or by the Federal Reserve Board on its member banks.
Code 1950, § 6-82; 1966, c. 584, § 6.1-68; 1974, c. 81; 1976, c. 152; 1994, c. 7 ; 2010, c. 794 .