"Bank"; "Depositary Bank"; "Payor Bank"; "Intermediary Bank"; "Collecting Bank"; "Presenting bank."

1. Law
2. Georgia Code
3. Commercial Code
4. Bank Deposits and Collections
5. General Provisions and Definitions
6. "Bank"; "Depositary Bank"; "Payor Bank"; "Intermediary Bank"; "Collecting Bank"; "Presenting bank."

In this article:

1. "Bank" means a person engaged in the business of banking, including a savings bank, savings and loan association, credit union, or trust company;
2. "Depositary bank" means the first bank to take an item even though it is also the payor bank, unless the item is presented for immediate payment over the counter;
3. "Payor bank" means a bank that is the drawee of a draft;
4. "Intermediary bank" means a bank to which an item is transferred in course of collection except the depositary or payor bank;
5. "Collecting bank" means a bank handling an item for collection except the payor bank; and
6. "Presenting bank" means a bank presenting an item except a payor bank.

(Code 1933, § 109A-4 - 105, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 4; Ga. L. 1997, p. 143, § 11.)

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 1996, the period at the end of section catchline was moved inside the ending quotation marks.

Law reviews.

- For comment on Trust Co. of Columbus v. Refrigeration Supplies, Inc., 241 Ga. 406, 246 S.E.2d 282 (1978), discussing liability of collecting and payor banks for payment of check over missing endorsement of copayee, see 13 Ga. L. Rev. 677 (1979).

JUDICIAL DECISIONS

Collecting bank's warranty of title runs to payor bank and "other payor."

- Collecting bank's warranty that it had good title to checks or was authorized to obtain payment or acceptance on behalf of one who has good title runs to payor bank and "other payor." Insurance Co. of N. Am. v. Atlas Supply Co., 121 Ga. App. 1, 172 S.E.2d 632 (1970).

Status of "collecting bank" not affected by transmitting checks through mail rather than federal reserve.

- Where customer of trust company presented checks to it for deposit in its accounts and trust company accepted the checks, credited customer's accounts and then forwarded checks to payor bank with collection form attached, such company performed more than requisite acts necessary to qualify as handling checks for collection, despite company's having forwarded checks by United States mail rather than through a federal reserve bank. First Nat'l Bank v. Trust Co., 510 F. Supp. 651 (N.D. Ga. 1981).

Burden of assuring validity of endorsements on checks rests directly on first bank in collection chain, since it is the first bank which has best opportunity to verify endorsements; this standard applies equally to situation of missing endorsements as well as forged endorsements. First Nat'l Bank v. Trust Co., 510 F. Supp. 651 (N.D. Ga. 1981).

Determination of bank as "collecting bank" and its liability.

- See Alimenta (U.S.A.), Inc. v. Stauffer, 568 F. Supp. 674 (N.D. Ga. 1983).

Cited in Harris v. Hill, 129 Ga. App. 403, 199 S.E.2d 847 (1973); Brannon v. First Nat'l Bank, 137 Ga. App. 275, 223 S.E.2d 473 (1976).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 970, 986. 15A Am. Jur. 2d, Commercial Code, § 68.

C.J.S.

- 9 C.J.S., Banks and Banking, § 1 et seq. 82 C.J.S., Statutes, § 309.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 4-105.

ALR.

- Maintenance of computer terminal in retail store for purpose of effecting transfer of funds between financial institution and its depositors as conduct of banking business by store, 73 A.L.R.3d 1282.

Construction of UCC § 4-105, which defines "payor bank," "collecting bank," and the like, 84 A.L.R.3d 1073.

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