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Call Now: 904-383-7448A trust, an estate, or a person described as trustee or representative of a trust or estate, the instrument is payable to the trustee, the representative, or a successor of either, whether or not the beneficiary or estate is also named;
A person described as agent or similar representative of a named or identified person, the instrument is payable to the represented person, the representative, or a successor of the representative;
A fund or organization that is not a legal entity, the instrument is payable to a representative of the members of the fund or organization; or
An office or to a person described as holding an office, the instrument is payable to the named person, the incumbent of the office, or a successor to the incumbent.
(Code 1981, §11-3-110, enacted by Ga. L. 1996, p. 1306, § 3.)
- For comment on Fulton Nat'l Bank v. Didschuneit, 92 Ga. App. 527, 88 S.E.2d 853 (1955), holding defendant bank liable for cashing check payable to joint payees on the authorized signature of only one of the payees, see 18 Ga. B.J. 346 (1956). For comment on Trust Co. v. Refrigeration Supplies, Inc., 241 Ga. 406, 246 S.E.2d 282 (1978), discussing liability of collecting and payor banks for payment of check over missing endorsement of copayee, see 13 Ga. L. Rev. 677 (1979).
- In light of the similarity of the provisions, decisions under former Code 1933, §§ 14-403 and 14-412 and former Code Section 11-3-116 are included in the annotations for this section.
- Purpose of former Code 1933, § 14-403, which required endorsement of the entire instrument or the unpaid residue, was to prevent payee or payees from varying or enlarging contract initially made by maker of instrument. When a maker executed a negotiable instrument payable to one payee or more, jointly, the maker subjected to one lawsuit, and if the payee in instrument transferred it to two or more endorsees severally, such endorsement subjected maker to two or more suits to which the maker had not been liable at time executed instrument. Hodson v. Scoggins, 102 Ga. App. 44, 115 S.E.2d 715 (1960) (decided under former Code 1933, § 14-403).
- Possession of a negotiable instrument is presumptive evidence of title, but it is not conclusive. One in possession of personal property is presumed to be the owner until the contrary appears, and the burden of rebutting the presumption is upon the party claiming adversely to the one in possession. Hattaway v. Keefe, 191 Ga. App. 315, 381 S.E.2d 569 (1989) (decided under former Code Section11-3-116).
- This Code section does not control ownership between copayees. Hattaway v. Keefe, 191 Ga. App. 315, 381 S.E.2d 569 (1989) (decided under former Code Section11-3-116).
- Principal or agent may enforce payment as holder of instrument in own name. Bennett v. Cannon, 114 Ga. App. 479, 151 S.E.2d 828 (1966) (decided under former Code Section11-3-117).
- Bank's payment of checks with only one endorsement is not only proper but was required where the two designated payees' names are separated by a virgule. Ryland Group, Inc. v. Gwinnett County Bank, 151 Ga. App. 148, 259 S.E.2d 152 (1979) (decided under former Code Section11-3-116).
- Instrument payable to joint payees must be endorsed by all of them. Insurance Co. of N. Am. v. Atlas Supply Co., 121 Ga. App. 1, 172 S.E.2d 632 (1970) (decided under former Code Section11-3-116).
Payment of a check payable to order of two or more payees without endorsement of a joint payee is exercise of dominion and control over check inconsistent with nonsigning payee's rights amounting to conversion. Situation is analogous to payment of check on forged endorsement, which former Code section § 11-3-419(1)(c) acknowledges to be conversion. Trust Co. v. Refrigeration Supplies, Inc., 241 Ga. 406, 246 S.E.2d 282 (1978) (decided under former Code Section11-3-116).
- Cashing bank is liable in damages to copayee for its failure to obtain copayee's endorsement on checks involved. Insurance Co. of N. Am. v. Atlas Supply Co., 121 Ga. App. 1, 172 S.E.2d 632 (1970) (decided under former Code Section11-3-116).
Damaged payee has cause of action against cashing bank for damages sustained where latter fails to obtain endorsements of all copayees on check. Insurance Co. of N. Am. v. Atlas Supply Co., 121 Ga. App. 1, 172 S.E.2d 632 (1970) (decided under former Code Section11-3-116).
- A bank never became a holder in due course where a check made payable jointly to the bank's customer and a third party was never endorsed by the third party before deposit in the bank. Citizens & S. Nat'l Bank v. Sun Belt Elec. Constructors, Inc., 64 Bankr. 377 (Bankr. N.D. Ga. 1986) (decided under former Code Section 11-3-116).
- Where instrument is payable to order of three payees and specifically states that interest of third payee is to be $1,000.00, endorsee of such third payee may maintain action for interest in the instrument without endorsement of other two payees and without joining them as parties. Hodson v. Scoggins, 102 Ga. App. 44, 115 S.E.2d 715 (1960)(decided under former Code 1933, § 14-412).
- 11 Am. Jur. 2d, Bills and Notes, §§ 79, 205, 391 et seq. 11 Am Jur. 2d, Banks and Financial Institutions, § 918. 12 Am. Jur. 2d, Bills and Notes, §§ 586, 646.
- 10 C.J.S., Bills and Notes, §§ 13, 128.
- Uniform Commercial Code (U.L.A.) § 3-110.
- Instruments for payment of money naming in alternative two or more payees, 171 A.L.R. 522.
Bank's liability to nonsigning payee for payment of check drawn to joint payees without obtaining endorsement by both, 47 A.L.R.3d 537.
No results found for Georgia Code 11-3-110.