O.C.G.A. § 11-3-413 (2019)
Obligation of acceptor
(a) The acceptor of a draft is obliged to pay the draft (i) according to its terms at the time it was accepted, even though the acceptance states that the draft is payable “as originally drawn” or equivalent terms; (ii) if the acceptance varies the terms of the draft, according to the terms of the draft as varied; or (iii) if the acceptance is of a draft that is an incomplete instrument, according to its terms when completed, to the extent stated in Code Sections 11-3-115 and 11-3-407. The obligation is owed to a person entitled to enforce the draft or to the drawer or an indorser who paid the draft under Code Section 11-3-414 or 11-3-415.
(b) If the certification of a check or other acceptance of a draft states the amount certified or accepted, the obligation of the acceptor is that amount. If the certification or acceptance does not state an amount, the amount of the instrument is subsequently raised, and the instrument is then negotiated to a holder in due course, the obligation of the acceptor is the amount of the instrument at the time it was taken by the holder in due course.
History
Code 1981, § 11-3-413, enacted by Ga. L. 1996, p. 1306, § 3.
Annotations
Cross references. Allowance of setoff against original payee in action by holder or transferee of negotiable instrument received under dishonor, § 13-7-7. Law reviews. For article discussing parol evidence in
the law of commercial paper, see 13 Ga. L. Rev. 53 (1978). For article surveying Georgia cases in the area of commercial law from June 1979 through May 1980, see 32 Mercer L. Rev. 11 (1980). For annual survey of commercial law, see 38 Mercer L. Rev. 85 (1986).
JUDICIAL DECISIONS ANALYSIS GENERAL CONSIDERATION PAROL EVIDENCE General Consideration Editor’s notes. - In light of the similarity of the statutory provisions, decisions under former Code 1933, §§ 14-602 and 109A-3-413 and former Code Section 11-3-413 are included in the annotations for this Code section. Promissory note is unconditional contract of maker to pay payee according to tenor of instrument. Tatum v. Bank of Cumming, 135 Ga. App. 675, 218 S.E.2d 677, 1975 Ga. App. LEXIS 1779 (1975); Curtis v. First Nat’l Bank, 158 Ga. App. 379, 280 S.E.2d 404, 1981 Ga. App. LEXIS 2216 (1981) (decided under former Code Section 11-3-413). Good faith is presumed until questioned. First Bank & Trust Co. v. Skelton, 154 Ga. App. 423, 268 S.E.2d 691, 1980 Ga. App. LEXIS 2207 (1980) (decided under former Code 1933, § 109A-3-413). Maker’s obligation. - The sale of a note, although it may provide the seller with sufficient funds to cover the debt,
does not discharge the maker’s obligation to pay the note according to its terms. First State Bank & Trust Co. v. McIver, 893 F.2d 301, 1990 U.S. App. LEXIS 954 (11th Cir. 1990) (decided under former Code Section 11-3-413). Impossibility of performance of contract covenant personal to promissor does not excuse nonperformance. Phillips v. Marcin, 162 Ga. App. 202, 290 S.E.2d 546, 1982 Ga. App. LEXIS 2110 (1982) (decided under former Code Section 11-3-413). Debt evidenced by note is not contingent upon continued existence of property. Phillips v. Marcin, 162 Ga. App. 202, 290 S.E.2d 546, 1982 Ga. App. LEXIS 2110 (1982) (decided under former Code Section 11-3-413). Necessary allegations. - In action on check against drawer, petition which fails to allege presentment and notice of dishonor, or facts excusing presentment and notice of dishonor, is subject to general demurrer. Lanier v. Waddell, 83 Ga. App. 423, 64 S.E.2d 79, 1951 Ga. App. LEXIS
880 (1951) (decided under former Code 1933, § 14-602). Parol Evidence Parol evidence generally not admissible to alter unconditional nature of note. - In absence of fraud, accident, or mistake, unconditional promissory note cannot be changed into conditional obligation by parol evidence. Dolanson Co. v. Citizens & S. Nat’l Bank, 242 Ga. 681, 251 S.E.2d 274, 1978 Ga. LEXIS 1323 (1978) (decided under former Code 1933, § 109A-3-413). Inadmissible to impose conditions not apparent from face of note. - A
promissory note, being an unconditional promise, is a complete contract as written, and parol evidence may not be used to impose conditions not apparent from face of note. Whiteside v. Douglas County Bank, 145 Ga. App. 775, 245 S.E.2d 2, 1978 Ga. App. LEXIS 2127 (1978); Curtis v. First Nat’l Bank, 158 Ga. App. 379, 280 S.E.2d 404, 1981 Ga. App. LEXIS 2216 (1981); Phillips v. Marcin, 162 Ga. App. 202, 290 S.E.2d 546, 1982 Ga. App. LEXIS 2110 (1982) (decided under former Code 1933, § 109A-3-413).
RESEARCH REFERENCES Am. Jur. 2d. 11 Am. Jur. 2d, Banks and Financial Institutions, § 956. 12 Am. Jur. 2d, Bills and Notes, §§ 438 et seq., 492, 557. C.J.S. 10 C.J.S., Bills and Notes, §§ 12 et seq., 39 et seq., 80 et seq., 263. U.L.A. Uniform Commercial Code (U.L.A.) § 3413. ALR. Words, “credit the drawer,” on note, as affecting liability of one who signs before delivery, 56 A.L.R. 232.
Negligence in drawing check which facilitates alteration as to payee as affecting bank’s liability in cashing check, 64 A.L.R. 1108. Duty of holder as regards presentation of check to drawee bank as affected by run on bank or other indications of impending closing of doors, 88 A.L.R. 479. Right of maker of negotiable paper which is subject to defenses as against payee-pledgor but not as against pledgee (by invoking doctrine of marshaling assets or otherwise) to require the latter to resort first to other collateral, 92 A.L.R. 1085.