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2018 Georgia Code 11-4-216 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 11-4-216 Case Law from Google Scholar Amendments to OCGA 11-4-216

TITLE 11 COMMERCIAL CODE

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

ARTICLE 4 BANK DEPOSITS AND COLLECTIONS

11-4-216. Insolvency and preference.

  1. If an item is in or comes into the possession of a payor or collecting bank that suspends payment and the item has not been finally paid, the item must be returned by the receiver, trustee, or agent in charge of the closed bank to the presenting bank or the closed bank's customer.
  2. If a payor bank finally pays an item and suspends payments without making a settlement for the item with its customer or the presenting bank which settlement is or becomes final, the owner of the item has a preferred claim against the payor bank.
  3. If a payor bank gives or a collecting bank gives or receives a provisional settlement for an item and thereafter suspends payments, the suspension does not prevent or interfere with the settlement's becoming final if the finality occurs automatically upon the lapse of certain time or the happening of certain events.
  4. If a collecting bank receives from subsequent parties settlement for an item, which settlement is or becomes final and the bank suspends payments without making a settlement for the item with its customer which settlement is or becomes final, the owner of the item has a preferred claim against the collecting bank.

(Code 1933, § 109A-4 - 214, enacted by Ga. L. 1962, p. 156, § 1; Code 1981, §11-4-216, as redesignated by Ga. L. 1996, p. 1306, § 11.)

Cross references.

- Order of payment of liabilities of financial institution which is liquidated or dissolved and the assets of which are insufficient to pay in full its liabilities, § 7-1-202.

Editor's notes.

- Ga. L. 1996, p. 1306, § 11, effective July 1, 1996, renumbered former Code Section 11-4-214 as Code Section 11-4-216.

JUDICIAL DECISIONS

Cited in Pazol v. Citizens Nat'l Bank, 110 Ga. App. 319, 138 S.E.2d 442 (1964).

RESEARCH REFERENCES

Am. Jur. 2d.

- 10 Am. Jur. 2d, Banks and Financial Institutions, § 863. 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 990, 1033 et seq.

C.J.S.

- 9 C.J.S., Banks and Banking, §§ 173 et seq., 405 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 4-216.

ALR.

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

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.

Rights of owners of securities deposited in bank, upon its insolvency, 51 A.L.R. 914; 84 A.L.R. 1534; 126 A.L.R. 625.

Trust or preference in assets of insolvent bank in respect of proceeds of collection as affected by notice or instructions with respect to collection, 90 A.L.R. 6.

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.

Failure of bank in which funds have been deposited for payment of coupons as affecting liability of party issuing them, 103 A.L.R. 1265.

No results found for Georgia Code 11-4-216.