O.C.G.A.

O.C.G.A. § 11-4-301 (2019)

Deferred posting; recovery of payment by return of items; time of dishonor; return of items by payor bank

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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(a) 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. (b) 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books, it may return the item or send notice of dishonor and may revoke any credit given or recover the amount thereof withdrawn by its customer, if it acts within the time limit and in the manner specified in subsection (a) of this Code section. (c) 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. (d) 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 clearinghouse 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.

History

Code 1933, § 109A-4-301, enacted by

Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 12.

Annotations

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 Ga. App. LEXIS 632 (2011).

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.) § 4301.

ALR. Construction and effect of UCC §§ 4301 and 4-302 making payor bank accountable for failure to act promptly on item presented for payment, 22 A.L.R.4th 10.

Notes of Decisions

Cited in 7 cases, 1985–2011 · leading case: Vadde v. Bank of Am., 687 S.E.2d 880 (Ga. Ct. App. 2009).

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Vadde v. Bank of Am., 687 S.E.2d 880 (Ga. Ct. App. 2009). · cites it 4× “OCGA §§ 11-4-301, and/or 11-4-302 . . . , since charge back of an honored check is barred by a subsequent wrongful dishonor without giving a timely notice of dishonor.”

Bleichner Bonta Martinez & Brown, Inc. v. Nat'l Bank of Georgia (In Re Micro Mart, Inc.), 72 B.R. 63 (Bankr. N.D. Ga. 1987). · cites it 4× “Plaintiff commenced the instant action in the State Court of Fulton County, Georgia alleging that Defendant, as the depository bank, failed to meet the “midnight deadline” set forth in O.C.G.A. § 11-4-301. Defendant removed the action to this Court pursuant to 28 U.”

Bd. of Zoning Adjustment v. Fulton Fed. Sav. & Loan Ass'n, 338 S.E.2d 730 (Ga. Ct. App. 1985). · cites it 2× “f the next business day following presentment” (OCGA § 11-3-506 (1)); delay in presentment of notice of dishonor or protest (OCGA § 11-3-601 (1) (i)); delay of collecting bank to secure payment of commercial paper (OCGA § 11-4-108); seasonable action in collection and sending of…”

Landers v. Heritage Bank, 374 S.E.2d 353 (Ga. Ct. App. 1988). · cites it 2× “The Landerses had no contractual indebtedness to the bank, nor did they cause any overdraft, and the action taken by the bank to charge back against the account was not timely under OCGA § 11-4-301 (1). Moreover, although it is not stated in the order appealed from, since the…”

Georgia Casulaty & Sur. Co. v. Tennille Banking Co. (In Re Smith), 51 B.R. 904 (Bankr. M.D. Ga. 1985). “§ 11-3-102(3) and § 11-4-301(4) (Michie 1982). 6 . Defendant’s payment of checks when the special account had insufficient funds does not prove that Defendant had an intent to deceive the auction companies.”

Peavy v. Bank South, N.A., 474 S.E.2d 690 (Ga. Ct. App. 1996). · cites it 2× “OCGA § 11-4-301 (1). The CNL draft, with its patently insufficient endorsement, was accepted for deposit on December 29, 1992.”

Whooping Creek Constr., LLC v. Bartow Cnty. Bank, 713 S.E.2d 871 (Ga. Ct. App. 2011). · cites it 6× “OCGA § 11-4-301 (d) (1) provides that “An item is returned .”

— 11-4-301(4) — 1 case

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.