ARTICLE 4A
FUNDS TRANSFERS
11-4A-204. Refund of payment and duty of customer to report with respect to unauthorized payment order.
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If a receiving bank accepts a payment order issued in the name of its customer as sender which is (i) not authorized and not effective as the order of the customer under Code Section 11-4A-202, or (ii) not enforceable, in whole or in part, against the customer under Code Section 11-4A-203, the bank shall refund any payment of the payment order received from the customer to the extent the bank is not entitled to enforce payment and shall pay interest on the refundable amount calculated from the date the bank received payment to the date of the refund.However, the customer is not entitled to interest from the bank on the amount to be refunded if the customer fails to exercise ordinary care to determine that the order was not authorized by the customer and to notify the bank of the relevant facts within a reasonable time not exceeding 90 days after the date the customer received notification from the bank that the order was accepted or that the customer's account was debited with respect to the order. The bank is not entitled to any recovery from the customer on account of a failure by the customer to give notification as stated in this section.
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Reasonable time under subsection (a) of this Code section may be fixed by agreement as stated in subsection (b) of Code Section 11-1-302, but the obligation of a receiving bank to refund payment as stated in subsection (a) of this Code section may not otherwise be varied by agreement.
(Code 1981, §11-4A-204, enacted by Ga. L. 1992, p. 2685, § 4; Ga. L. 2015, p. 996, § 3B-15/SB 65.)
The 2015 amendment,
effective January 1, 2016, substituted the present provisions of subsection (b) for the former provisions, which read: "Reasonable time under subsection (a) may be fixed by agreement as stated in Code Section 11-1-204(1), but the obligation of a receiving bank to refund payment as stated in subsection (a) may not otherwise be varied by agreement."
Editor's notes.
- Ga. L. 2015, p. 996,
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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."
RESEARCH REFERENCES
U.L.A.
- Uniform Commercial Code (U.L.A.)
§
4A-204.
