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O.C.G.A. § 11-4-301 — Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank | Georgia Code
O.C.G.A. § 11-4-301 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 11 COMMERCIAL CODE

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

ARTICLE 4 BANK DEPOSITS AND COLLECTIONS

11-4-301. Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank.

  1. If a payor bank settles for a demand item other than a documentary draft presented otherwise than for immediate payment over the counter before midnight of the banking day of receipt, the payor bank may revoke the settlement and recover the settlement if, before it has made final payment and before its midnight deadline, it:
    1. Returns the item; or
    2. Sends written notice of dishonor or nonpayment if the item is unavailable for return.
  2. If a demand item is received by a payor bank for credit on its books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in subsection (a) of this Code section.
  3. Unless previous notice of dishonor has been sent, an item is dishonored at the time when for purposes of dishonor it is returned or notice sent in accordance with this Code section.
  4. An item is returned:
    1. As to an item presented through a clearing-house, when it is delivered to the presenting or last collecting bank or to the clearing-house or is sent or delivered in accordance with clearing-house rules; or
    2. In all other cases, when it is sent or delivered to the bank's customer or transferor or pursuant to instructions.

(Code 1933, § 109A-4 - 301, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 12.)

JUDICIAL DECISIONS

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).

Cited in Clements v. Central Bank, 155 Ga. App. 27, 270 S.E.2d 194 (1980); Sabin Meyer Regional Sales Corp. v. Citizens Bank, 502 F. Supp. 557 (N.D. Ga. 1980); Bleichner, Bonta, Martinez & Brown, Inc. v. National Bank (In re Micro Mart, Inc.), 72 Bankr. 63 (Bankr. N.D. Ga. 1987); Landers v. Heritage Bank, 188 Ga. App. 785, 374 S.E.2d 353 (1988).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, § 970 et seq. 11 Am. Jur. 2d, Bills and Notes, § 351 et seq.

C.J.S.

- 9 C.J.S., Banks and Banking, § 397 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 4-301.

ALR.

- Construction and effect of UCC §§ 4-301 and 4-302 making payor bank accountable for failure to act promptly on item presented for payment, 22 A.L.R.4th 10.

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