diff --git a/core/error.go b/core/error.go
index 514cd076b..04e40646c 100644
--- a/core/error.go
+++ b/core/error.go
@@ -146,3 +146,19 @@ func IsKnownBlockErr(e error) bool {
 	_, ok := e.(*KnownBlockError)
 	return ok
 }
+
+type ValueTransferError struct {
+	message string
+}
+
+func ValueTransferErr(str string, v ...interface{}) *ValueTransferError {
+	return &ValueTransferError{fmt.Sprintf(str, v...)}
+}
+
+func (self *ValueTransferError) Error() string {
+	return self.message
+}
+func IsValueTransferErr(e error) bool {
+	_, ok := e.(*ValueTransferError)
+	return ok
+}
diff --git a/core/execution.go b/core/execution.go
index f7d5a8945..4a69cce09 100644
--- a/core/execution.go
+++ b/core/execution.go
@@ -1,7 +1,6 @@
 package core
 
 import (
-	"fmt"
 	"math/big"
 	"time"
 
@@ -26,7 +25,10 @@ func (self *Execution) Addr() []byte {
 
 func (self *Execution) Call(codeAddr []byte, caller vm.ContextRef) ([]byte, error) {
 	// Retrieve the executing code
-	code := self.env.State().GetCode(codeAddr)
+	var code []byte
+	if self.env.State().GetStateObject(codeAddr) != nil {
+		code = self.env.State().GetCode(codeAddr)
+	}
 
 	return self.exec(code, codeAddr, caller)
 }
@@ -55,7 +57,7 @@ func (self *Execution) exec(code, contextAddr []byte, caller vm.ContextRef) (ret
 
 		caller.ReturnGas(self.Gas, self.price)
 
-		return nil, fmt.Errorf("insufficient funds to transfer value. Req %v, has %v", self.value, from.Balance())
+		return nil, ValueTransferErr("insufficient funds to transfer value. Req %v, has %v", self.value, from.Balance())
 	}
 
 	snapshot := env.State().Copy()
diff --git a/core/state_transition.go b/core/state_transition.go
index 00e383f3f..f54acd6ee 100644
--- a/core/state_transition.go
+++ b/core/state_transition.go
@@ -3,6 +3,7 @@ package core
 import (
 	"fmt"
 	"math/big"
+
 	"github.com/ethereum/go-ethereum/crypto"
 	"github.com/ethereum/go-ethereum/ethutil"
 	"github.com/ethereum/go-ethereum/state"
@@ -185,7 +186,7 @@ func (self *StateTransition) TransitionState() (ret []byte, err error) {
 		}
 	}
 	if err = self.UseGas(big.NewInt(dgas)); err != nil {
-		return
+		return nil, InvalidTxError(err)
 	}
 
 	//stateCopy := self.env.State().Copy()
@@ -231,10 +232,16 @@ func (self *StateTransition) TransitionState() (ret []byte, err error) {
 		*/
 	}
 
-	if err != nil {
-		self.UseGas(self.gas)
+	if err != nil && IsValueTransferErr(err) {
+		return nil, InvalidTxError(err)
 	}
 
+	/*
+		if err != nil {
+			self.UseGas(self.gas)
+		}
+	*/
+
 	return
 }
 
diff --git a/vm/vm.go b/vm/vm.go
index bce8088ef..ff4692ec8 100644
--- a/vm/vm.go
+++ b/vm/vm.go
@@ -408,7 +408,12 @@ func (self *Vm) Run(me, caller ContextRef, code []byte, value, gas, price *big.I
 		case BALANCE:
 
 			addr := stack.Pop().Bytes()
-			balance := statedb.GetBalance(addr)
+			var balance *big.Int
+			if statedb.GetStateObject(addr) != nil {
+				balance = statedb.GetBalance(addr)
+			} else {
+				balance = base
+			}
 
 			stack.Push(balance)