Editor's notes.

- In light of the similarity of the issues dealt with under the provisions, decisions under former Code 1933, §§ 14-223 and 14-505 and former Code Section 11-3-603 are included in the annotations for this Code section.

Stop payment order does not relieve drawer of liability to holder.

- While drawer of check has the right to stop payment of it at any time before certification or payment by drawee, drawer remains liable, unless drawer has a defense good against the holder. Tidwell v. Bank of Tifton, 115 Ga. App. 555, 155 S.E.2d 451 (1967) (decided under former Code Section11-3-603).

Sale of note does not relieve maker.

- 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 (11th Cir. 1990) (decided under former Code Section 11-3-603).

Payment over forged endorsement not protection against true owner.

- Payment of promissory note to supposed transferee, holding it by virtue of forged endorsement, will not protect maker or one who has assumed the debt, against payment to true owner; and, consequently, in suit by such alleged transferee to enforce liability against such parties, assumer may utilize defense that alleged transfer by payee was not genuine. Austell Bank v. National Bondholders Corp., 188 Ga. 757, 4 S.E.2d 913 (1939) (decided under former Code 1933, § 14-223).

Inquiry into plaintiff's title.

- In a suit instituted by a person claiming to be the owner and holder of a promissory note, for the purpose of recovering thereon against the maker and another person alleged to have assumed the debt, it is permissible for the latter to inquire into the plaintiff's title to the note, if necessary either for the other's protection or to let in any valid defense which that person seeks to make. Austell Bank v. National Bondholders Corp., 188 Ga. 757, 4 S.E.2d 913 (1939) (decided under former Code 1933, §§ 14-223 and 14-505).

Plaintiffs could not assert claim based on instruments to which plaintiffs were not parties or third-party beneficiaries.

- Plaintiffs' claim that the defendant violated the "one satisfaction rule" by foreclosing on the plaintiffs' home failed because the plaintiffs could not assert a claim against the defendant based on a purported insurance policy or settlement agreement as the plaintiffs were not parties to, or third-party beneficiaries of, those instruments. Fenello v. Bank of Am., N.A., F. Supp. 2d (N.D. Ga. Nov. 8, 2013).

Pooling of mortgage loan argument failed.

- In a case arising from a foreclosure, a pro se borrower's argument that the underlying debt had been paid was meritless. The pooling of the mortgage loan into a securitized trust did not absolve the borrower from having to make loan payments or somehow shield the borrower's property from foreclosure. Morrison v. Bank of Am., N.A., F. Supp. 2d (N.D. Ga. July 31, 2014).

Bankruptcy.

- In a case arising from a foreclosure, a pro se borrower's argument that the underlying debt had been paid was meritless. While the borrower was granted a bankruptcy discharge, it was axiomatic that a discharge in bankruptcy extinguished only the borrower's personal liability of the debtor, and a creditor's right to foreclose on the property secured by the loan survived or passed through the bankruptcy. Morrison v. Bank of Am., N.A., F. Supp. 2d (N.D. Ga. July 31, 2014).

Am. Jur. 2d.

- 11 Am. Jur. 2d, Bills and Notes, §§ 656, 963, 964, 970. 69 Am. Jur. 2d, Secured Transactions, §§ 230, 529, 530.

C.J.S.

- 10 C.J.S., Bills and Notes, § 231 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 3-602.

ALR.

- Renewal of bill or note as precluding defenses available against the original, 35 A.L.R. 1258; 72 A.L.R. 600.

May one not a holder in due course of original note acquire that character as to a renewal note, 35 A.L.R. 1300.

Construction of savings bank by-law expressly assented to by depositor, relieving bank from liability for payment to unauthorized person, 52 A.L.R. 760.

Discharge of drawer or endorser of check by holder's acceptance therefor of something other than money, 52 A.L.R. 994; 87 A.L.R. 442.

Renewal note as discharging original obligation or indebtedness, 52 A.L.R. 1416.

Right of purchaser of stolen bonds, 85 A.L.R. 357; 102 A.L.R. 28.

Surrender of commercial paper received as conditional payment as condition to recovery on original obligation, 85 A.L.R. 1057.

Payment to payee, indorser, or guarantor of bill or note not in possession thereof, 103 A.L.R. 653.