Presentment by Notice of Item Not Payable By, Through, or at a Bank; Liability of Drawer or Indorser

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Bank Deposits and Collections
  5. Collection of Items: Depositary and Collecting Banks
  6. Presentment by Notice of Item Not Payable By, Through, or at a Bank; Liability of Drawer or Indorser

Checkout our iOS App for a better way to browser and research.

  1. Unless otherwise instructed, a collecting bank may present an item not payable by, through, or at a bank by sending to the party to accept or pay a written notice that the bank holds the item for acceptance or payment. The notice must be sent in time to be received on or before the day when presentment is due and the bank must meet any requirement of the party to accept or pay under Code Section 11-3-501 by the close of the bank's next banking day after it knows of the requirement.
  2. If presentment is made by notice and payment, acceptance, or request for compliance with a requirement under Code Section 11-3-501 is not received by the close of business on the day after maturity or, in the case of demand items by the close of business on the third banking day after notice was sent, the presenting bank may treat the item as dishonored and charge any drawer or indorser by sending it notice of the facts.

(Code 1933, § 109A-4 - 210, enacted by Ga. L. 1962, p. 156, § 1; Code 1981, §11-4-212, as redesignated by Ga. L. 1996, p. 1306, § 9.)

Editor's notes.

- Ga. L. 1996, p. 1306, § 11, effective July 1, 1996, renumbered former Code Section 11-4-210 as present Code Section 11-4-212 and renumbered former Code Section 11-4-212 as present Code Section 11-4-214.

JUDICIAL DECISIONS

Cited in Peavy v. Bank South, N.A., 222 Ga. App. 501, 474 S.E.2d 690 (1996); Baker v. Campbell, 255 Ga. App. 523, 565 S.E.2d 855 (2002).

RESEARCH REFERENCES

Am. Jur. 2d.

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

C.J.S.

- 9 C.J.S., Banks and Banking, § 408 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 4-212.

ALR.

- Who must bear loss of funds from failure of bank, at which bill or note is payable, during delay in presenting it, 2 A.L.R. 1381.


Download our app to see the most-to-date content.