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2018 Georgia Code 11-4-202 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 11-4-202 Case Law from Google Scholar Amendments to OCGA 11-4-202

TITLE 11 COMMERCIAL CODE

Section 4. Bank Deposits and Collections, 11-4-101 through 11-4-504.

ARTICLE 4 BANK DEPOSITS AND COLLECTIONS

11-4-202. Responsibility for collection or return; when action timely.

  1. A collecting bank must exercise ordinary care in:
    1. Presenting an item or sending it for presentment;
    2. Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank's transferor after learning that the item has not been paid or accepted, as the case may be;
    3. Settling for an item when the bank receives final settlement; and
    4. Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.
  2. A collecting bank exercises ordinary care under subsection (a) of this Code section by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.
  3. Subject to paragraph (1) of subsection (a) of this Code section, a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.

(Code 1933, § 109A-4 - 202, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 6.)

JUDICIAL DECISIONS

Action that is within "reasonably longer time" than is seasonable.

- In the case of time actions, action after midnight deadline, but sufficiently in advance of maturity for proper presentation, is clear example of "reasonably longer time" than is seasonable. Clements v. Central Bank, 155 Ga. App. 27, 270 S.E.2d 194 (1980).

Notification of returned check on same date bank received notice.

- Bnk demonstrated that the bank satisfied O.C.G.A. § 11-4-202 by notifying the bank's customer that a check deposited by the customer had been returned due to fraud on the same date the bank received notification from the payor bank that the check was counterfeit. Vadde v. Bank of Am., 301 Ga. App. 475, 687 S.E.2d 880 (2009), cert. denied, No. S10C0624, 2010 Ga. LEXIS 338 (Ga. 2010); cert. denied, 131 S. Ct. 298, 178 L. Ed. 2d 143 (2010).

Cited in Alimenta (U.S.A.), Inc. v. Stauffer, 568 F. Supp. 674 (N.D. Ga. 1983).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 978, 980, 990 et seq.

C.J.S.

- 9 C.J.S., Banks and Banking, §§ 408 et seq., 415, 425 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 4-202.

ALR.

- Banks: effect of overcertification of check, 2 A.L.R. 86.

Liability of bank to obligor of paper for negligence in making collection, 4 A.L.R. 521.

Duty of collecting bank as to notices of protest or dishonor which it receives from its correspondent, 4 A.L.R. 534.

Duty of bank taking bill or note for collection to see that it is returned if not paid, 6 A.L.R. 618.

Liability of bank for deposit received by employees out of banking hours, 15 A.L.R. 429.

Measure of damages for breach of duty by bank in respect to collection of commercial paper, 19 A.L.R. 555; 67 A.L.R. 1511.

Liability of collecting bank for loss of funds through attachment thereof, 36 A.L.R. 742.

Liability of bank taking commercial paper for collection for default of correspondent, 36 A.L.R. 1308; 44 A.L.R. 1430; 80 A.L.R. 815.

Duty of bank to prior parties to the paper to apply deposit to credit of endorser on paper owned by bank, 37 A.L.R. 578.

Trust in proceeds of collections made by charging debtor's account in collecting bank, 42 A.L.R. 754; 47 A.L.R. 761; 77 A.L.R. 473.

Liability of forwarding bank for proceeds of collection by correspondent bank which becomes insolvent after crediting proceeds to account of forwarding bank, 99 A.L.R. 510.

Liability of collecting bank which extends time of payment or accepts renewal, 101 A.L.R. 593.

Duties of collecting bank with respect to presenting draft or bill of exchange for acceptance, 39 A.L.R.2d 1296.

Bank's liability for payment or withdrawal on less than required number of signatures, 7 A.L.R.4th 655.

No results found for Georgia Code 11-4-202.