Delays

1. Law
2. Georgia Code
3. Commercial Code
4. Bank Deposits and Collections
5. General Provisions and Definitions
6. Delays

1. Unless otherwise instructed, a collecting bank in a good faith effort to secure payment of a specific item drawn on a payor other than a bank, and with or without the approval of any person involved, may waive, modify, or extend time limits imposed or permitted by this title for a period not exceeding two additional banking days without discharge of drawers or indorsers or liability to its transferor or a prior party.
2. Delay by a collecting bank or payor bank beyond time limits prescribed or permitted by this title or by instructions is excused if (i) the delay is caused by interruption of communication or computer facilities, suspension of payments by another bank, war, emergency conditions, failure of equipment, or other circumstances beyond the control of the bank; and (ii) the bank exercises such diligence as the circumstances require.

(Code 1933, § 109A-4 - 108, enacted by Ga. L. 1962, p. 156, § 1; Code 1981, §11-4-109, as redesignated by Ga. L. 1996, p. 1306, § 5.)

Editor's notes.

- Ga. L. 1996, p. 1306, § 5, effective July 1, 1996, renumbered former Code Section 11-4-108 as present Code Section 11-4-109.

JUDICIAL DECISIONS

Cited in Samples v. Trust Co., 118 Ga. App. 307, 163 S.E.2d 325 (1968); Trading Assocs. v. Trust Co. Bank, 142 Ga. App. 229, 235 S.E.2d 661 (1977); Clements v. Central Bank, 155 Ga. App. 27, 270 S.E.2d 194 (1980).

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 980, 981.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 4-109.

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