O.C.G.A. § 11-3-414 (2019)
Obligation of drawer
(a) This Code section does not apply to cashier’s checks or other drafts drawn on the drawer. (b) If an unaccepted draft is dishonored, the drawer is obliged to pay the draft (i) according to its terms at the time it was issued or, if the instrument was not issued, at the time it first came into possession of a holder; or (ii) if the drawer signed an incomplete instrument, according to the instrument’s 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 an indorser who paid the draft under Code Section 11-3-415. (c) If a draft is accepted by a bank, the drawer is discharged, regardless of when or by whom acceptance was obtained. (d) If a draft is accepted and the acceptor is not a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor
is the same as the obligation of an indorser under subsections (a) and (c) of Code Section 11-3-415. (e) If a draft states that it is drawn “without recourse” or otherwise disclaims liability of the drawer to pay the draft, the drawer is not liable under subsection (b) of this Code section to pay the draft if the draft is not a check. A disclaimer of the liability stated in subsection (b) of this Code section is not effective if the draft is a check. (f) If a check is not presented for payment or given to a depositary bank for collection within 30 days after its date, the drawee suspends payments after expiration of the 30 day period without paying the check, and because of the suspension of payments, the drawer is deprived of funds maintained with the drawee to cover payment of the check, the drawer, to the extent deprived of funds, may discharge its obligation to pay the check by assigning to the person entitled to enforce the check the rights of the drawer against the drawee with respect to the funds.
History
Code 1981, § 11-3-414, enacted by Ga. L. 1996, p. 1306, § 3.
Annotations
JUDICIAL DECISIONS Bank as holder in due course. - Trial court did not err in granting a bank summary judgment on the bank’s claims against an automobile seller for enforcement of drawer and signer obligations under the Georgia Uniform Commercial Code (UCC), O.C.G.A. § 11-3-414(b), and for a violation of the bad check statute, O.C.G.A. § 13-6-15, because there was no genuine issue of material fact as to whether the bank was a holder in due course of the check; the bank was entitled to enforce the drawer and signer obligations imposed upon the seller because the bank was the “holder” of the check pursuant to § 11-3-414(b), and since the bank was the depository bank, and the amount of the check was deposited to the bank’s customer’s account, the bank became the holder of the instrument when the bank received the check for collection. Consumer Solutions Fin. Servs. v. Heritage
Bank, 300 Ga. App. 272, 684 S.E.2d 682, 2009 Ga. App. LEXIS 1146 (2009). Enforcement of drawer and signer obligations. - Trial court did not err in granting a bank summary judgment on the bank’s claims against an automobile seller for enforcement of drawer and signer obligations under the Georgia Uniform Commercial Code (UCC), O.C.G.A. § 11-3-414(b), and for a violation of the bad check statute, O.C.G.A. § 13-6-15, because there was no genuine issue of material fact over whether the seller was the drawer and signer of the check for purposes of the UCC and the bad check statute; the seller admitted that the seller’s representative was the actual signatory of the check and that the representative possessed authority to sign checks on the seller’s behalf. Consumer Solutions Fin. Servs. v. Heritage Bank, 300 Ga. App. 272, 684 S.E.2d 682, 2009 Ga. App. LEXIS 1146 (2009).
RESEARCH REFERENCES U.L.A. Uniform Commercial Code (U.L.A.) § 3414.