O.C.G.A. § 7-1-372 (2019)
Collection charge; service charge
A commercial bank may deduct a reasonable collection charge covering its actual expenses from the remittance for any check forwarded to it for collection and remittance as a special collection item and may impose a service charge as authorized by Code Section 44-12-196, relating to when an instrument on which a banking or financial organization is directly liable is presumed abandoned.
History
Ga. L. 1919, p. 135, art. 19, §§ 27, 28; Ga. L. 1920, p. 102, § 1; Code 1933, §§ 132027, 13-2028; Ga. L. 1939, p. 360, §§ 1, 2; Ga. L. 1966, p. 692, § 50; Ga. L. 1967, p. 798, §§ 1, 2; Ga. L. 1969, p. 126, § 1; Ga. L. 1973, p. 526, §§ 6, 7; Code 1933, § 41A-
1703, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1995, p. 1368, § 2; Ga. L. 2016, p. 390, § 2-6/HB 811.
Annotations
Cross references. Bank deposits and collections generally, § 11-4-101 et seq.
T.7, C.1, A.2, P.8
JUDICIAL DECISIONS Preempted by federal law. - Since the court found that O.C.G.A. §§ 7-1-239.5 and 7-1-372 were in direct conflict with 12 U.S.C. § 24 and 12 C.F.R. § 7.4002(a) under the National Bank Act, 12 U.S.C. § 21 et seq., the state statutes were preempted, and the court granted the bank’s Fed. R. Civ. P. 56 motion. Bank of Am., N.A. v. Sorrell, 248 F. Supp. 2d 1196, 2002 U.S. Dist. LEXIS 26371 (N.D. Ga. 2002). “Lawful charges” against dormant checks, money order, and drafts. - O.C.G.A. § 7-1-358 and a related
regulation do not allow assessment of service charges only against dormant deposit accounts; thus, charges against dormant checks, money orders, and drafts qualified as “lawful charges” and were properly withheld from the Department of Revenue when funds were remitted under the Unclaimed Property Act, O.C.G.A. § 44-12-190 et seq. First Union Nat’l Bank v. Collins, 221 Ga. App. 442, 471 S.E.2d 892, 1996 Ga. App. LEXIS 389 (1996), cert. denied, No. S96C1460, 1996 Ga. LEXIS 958 (Ga. Sept. 5, 1996).
OPINIONS OF THE ATTORNEY GENERAL This title does not restrict how banks treat items for collection. - Neither former Code 1933, Title 41A nor Title 109A (see now O.C.G.A. Title 7 nor Title 11) restricted in any way a bank’s freedom to decide how the bank will treat any particular collection item, whether it
be a check or a credit union share draft. 1977 Op. Att’y Gen. No. 77-2. Banks not required to process credit union share drafts as cash items, rather than as drafts for collection. 1977 Op. Att’y Gen. No. 77-2.
RESEARCH REFERENCES ALR. Priority as between checks simultaneously presented to drawee bank for payment, 61 A.L.R. 960. Liability of bank which diverts checks or drafts drawn to its order to a use other than that of the drawer, 82 A.L.R. 1372. Discharge of drawer or endorser of check by holder’s acceptance therefor of
something other than money, 87 A.L.R. 442. Duty and liability of bank in respect of a depositor’s check drawn upon and payable to the bank, 138 A.L.R. 853. Constitutionality, construction, and application of statutes requiring clearance of checks at par, 174 A.L.R. 869.
PART 8 INCORPORATION OF BANKS AND TRUST COMPANIES Cross references. Incorporation of Secretary of State corporations generally, § 14-4-21 et seq. JUDICIAL DECISIONS Editor’s notes. - In light of the
similarity of the statutory provisions,
T.7, C.1, A.2, P.8
decisions under former Ga. L. 1919, p. 135 are included in the annotations for this part. Trust company not a chartered bank within penal laws. - Trust company incorporated under provisions of Ga. L. 1919, p. 135 is not a chartered
bank, within the meaning of the penal laws of this state relating only to such banks. Dunn v. State, 13 Ga. App. 314, 79 S.E. 170, 1913 Ga. App. LEXIS 138 (1913), (decided under former Ga. L. 1919, p. 135).