A collecting bank or other intermediary known to be entrusted with documents of title on behalf of another or with collection of a draft or other claim against delivery of documents warrants by the delivery of the documents only its own good faith and authority even if the collecting bank or other intermediary has purchased or made advances against the claim or draft to be collected.
(Code 1933, § 109A-7 - 508, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451.)
The 2010 amendment, effective May 27, 2010, added "of title" in the catchline; inserted "of title" near the beginning; and, near the middle, substituted "the delivery" for "such delivery" and substituted "even if the collecting bank or other" for ". This rules applies even though the". See the Editor's notes for applicability.
Editor's notes.- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.
Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.
RESEARCH REFERENCES
Am. Jur. 2d.
- 15A Am. Jur. 2d, Commercial Code, § 68.
C.J.S.- 9 C.J.S., Banks and Banking, § 241.
U.L.A.- Uniform Commercial Code (U.L.A.) § 7-508.