O.C.G.A. § 11-4-104 (2019)
Definitions and index of definitions
(a) In this article, unless the context otherwise requires: (1) “Account” means any deposit or credit account with a bank,
including a demand, time, savings, passbook, share draft, or like account, other than an account evidenced by a certificate of deposit; (2) “Afternoon” means the period of a day between noon and midnight; (3) “Banking day” means the part of a day on which a bank is open to the public for carrying on substantially all of its banking functions; (4) “Clearing-house” means an association of banks or other payors regularly clearing items; (5) “Customer” means a person having an account with a bank or for whom a bank has agreed to collect items, including a bank that maintains an account at another bank; (6) “Documentary draft” means a draft to be presented for acceptance or payment if specified documents, certificated securities (Code Section 11-8-102) or instructions for uncertificated securities (Code Section 11-8-102), or other certificates, statements, or the like are to be received by the drawee or other payor before acceptance or payment of the draft; (7) “Draft” means a draft as defined in Code Section 11-3-104 or an item, other than an instrument, that is an order; (8) “Drawee” means a person ordered in a draft to make payment; (9) “Item” means an instrument or a promise or order to pay money handled by a bank for collection or payment. The term does not include a payment order governed by Article 4A of this title or a credit or debit card slip; (10) “Midnight deadline” with respect to a bank is midnight on its next banking day following the banking day on which it receives the relevant item or notice or from which the time for taking action commences to run, whichever is later; (11) “Settle” means to pay in cash, by clearing-house settlement, in a charge or credit, or by remittance, or otherwise as agreed. A settlement may be either provisional or final; and (12) “Suspends payments” with respect to a bank means that it has been closed by order of the supervisory authorities, that a public officer has been appointed to take it over, or that it ceases or refuses to make payments in the ordinary course of business. (b) Other definitions applying to this article and the Code sections in which they appear are:
“Agreement for electronic presentment.” Code Section 11-4-110. “Bank.” Code Section 11-4-105. “Collecting bank.” Code Section 11-4-105. “Depositary bank.” Code Section 11-4-105. “Intermediary bank.” Code Section 11-4-105. “Payor bank.” Code Section 11-4-105. “Presenting bank.” Code Section 11-4-105. “Presentment notice.” Code Section 11-4-110. (c) “Control” as provided in Code Section 11-7-106 and the following definitions in other articles of this title apply to this article: “Acceptance.” Code Section 11-3-409. “Alteration.” Code Section 11-3-407. “Cashier’s check.” Code Section 11-3-104. “Certificate of deposit.” Code Section 11-3-104. “Certified check.” Code Section 11-3-409. “Check.” Code Section 11-3-104. “Holder in due course.” Code Section 11-3-302. “Instrument.” Code Section 11-3-104. “Notice of dishonor.” Code Section 11-3-503. “Order.” Code Section 11-3-103. “Ordinary care.” Code Section 11-3-103. “Person entitled to enforce.” Code Section 11-3-301. “Presentment.” Code Section 11-3-501. “Promise.” Code Section 11-3-103. “Prove.” Code Section 11-3-103. “Teller’s check.” Code Section 11-3-104. “Unauthorized signature.” Code Section 11-3-403. (d) In addition Article 1 of this title contains general definitions and principles of construction and interpretation applicable throughout this article.
History
Code 1933, § 109A-4-104, enacted by
Ga. L. 1962, p. 156, § 1; Ga. L. 1963, p. 188, § 9; Ga. L. 1974, p. 618, § 1; Ga. L.
1992, p. 2685, § 3; Ga. L. 1996, p. 1306, § 4; Ga. L. 1998, p. 1323, § 17; Ga. L. 2010, p. 481, § 2-16/HB 451; Ga. L. 2015, p. 996, § 3B-12/SB 65.
Annotations
Code Commission notes. Pursuant to Code Section 28-9-5, in 1996, ending quotation marks were added following “Cashier’s check.” in subsection (c). Editor’s notes. Ga. L. 2010, p. 481, § 3-1/HB 451, not codified by the General Assembly, provides that: “This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act.” This Act became effective May 27, 2010. Ga. L. 2010, p. 481, § 3-2/HB 451, not codified by the General Assembly, pro-
vides that: “A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule.” This Act became effective May 27, 2010. Ga. L. 2015, p. 996, § 1-1/SB 65, not codified by the General Assembly, provides: “(a) This Act shall be known and may be cited as the ‘Debtor-Creditor Uniform Law Modernization Act of 2015.’ “(b) To promote consistency among the states, it is the intent of the General Assembly to modernize certain existing uniform laws promulgated by the Uniform Law Commission affecting debtor and creditor rights, responsibilities, and relationships and other federally recognized laws affecting such rights, responsibilities, and relationships.” Law reviews. For note on 1992 amendment of this Code section, see 9 Ga. St. U.L. Rev. 163 (1992).
JUDICIAL DECISIONS ANALYSIS GENERAL CONSIDERATION ACCOUNT CUSTOMER General Consideration Midnight deadline. - There was no issue of fact as to whether a check received by a bank was returned to the Federal Reserve Bank by the midnight deadline of June 19, although the Federal Reserve stamped the check received as of June 22, because there was no evidence to contradict a bank officer’s deposition that the check was timely returned. The bank had no control over when the Federal Reserve processed the check. Whooping Creek Constr., LLC v. Bartow County Bank, 310 Ga. App. 690, 713 S.E.2d 871, 2011 Ga. App. LEXIS 632 (2011). Account Scope. - “Account” under subsection
(1)(a) (now O.C.G.A. § 11-4-104(a)(1)) is not limited to accounts specifically named. Columbian Peanut Co. v. Frosteg, 472 F.2d 476, 1973 U.S. App. LEXIS 11994 (5th Cir.), cert. denied, 414 U.S. 824, 94 S. Ct. 126, 38 L. Ed. 2d 57 (1973). Customer Oral contract to pay drawer’s checks. - Bank’s oral contract, based on agreed consideration to pay drawer’s checks as presented, places upon the bank same responsibilities and liabilities as if checks had been paid from general deposit of money by drawer in the bank. Columbian Peanut Co. v. Frosteg, 472 F.2d 476, 1973 U.S. App. LEXIS 11994 (5th Cir.),
Customer (Cont’d) cert. denied, 414 U.S. 824, 94 S. Ct. 126, 38 L. Ed. 2d 57 (1973). If one acts for another by power of attorney suggesting possible incapacity or other special circumstance, a bank’s customer must be deemed inclusive of the
depositor and the attorney-in-fact who acts as depositor/principal’s agent. Wachovia Bank of Ga., N.A. v. Reynolds, 244 Ga. App. 1, 533 S.E.2d 743, 2000 Ga. App. LEXIS 492 (2000), cert. denied, No. S00C1554, 2000 Ga. LEXIS 759 (Ga. Oct. 6, 2000).
OPINIONS OF THE ATTORNEY GENERAL Purchaser of a cashier’s check falls within law’s broad definition of “customer.” 1977 Op. Att’y Gen. No. 77-16. RESEARCH REFERENCES Am. Jur. 2d. 11 Am. Jur. 2d, Banks and Financial Institutions, § 970 et seq. C.J.S. 9 C.J.S., Banks and Banking, § 1. 82 C.J.S., Statutes, § 309. U.L.A. Uniform Commercial Code (U.L.A.) § 4104.
ALR. Clearing-house transactions as payment or acceptance of checks, 30 A.L.R. 1028. Balance due other banks on clearinghouse settlement as preferred claim against insolvent bank, 44 A.L.R. 1535. Banks: what is “documentary draft” under UCC § 4-104(1)(f), 65 A.L.R.4th 1095.