Liens on Merchandise Because of Bad Checks or Stop Payment Orders

  1. Law
  2. Georgia Code
  3. Property
  4. Mortgages, Conveyances to Secure Debt, and Liens
  5. Liens
  6. Miscellaneous Liens
  7. Liens on Merchandise Because of Bad Checks or Stop Payment Orders

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  1. For the purposes of this Code section, the term "bad check" means a check drawn for payment of money on any bank or other depository in exchange for merchandise or for services rendered on merchandise when:
    1. The drawer had no account with the drawee at the time the check was drawn;
    2. Payment was refused by the drawee for lack of funds in the account of the drawer upon presentation within 30 days after delivery and the drawer or someone for him shall not have paid the payee the amount due thereon within ten days after receiving written notice mailed by certified or registered mail or statutory overnight delivery that payment was refused upon such instrument; or
    3. Notice mailed by certified or registered mail or statutory overnight delivery as provided in paragraph (2) of this subsection is returned undelivered to the sender when such notice was mailed within a reasonable time of dishonor to the address printed on the check or given by the drawer at the time of issuance of the check.
  2. The payee of any bad check written in full or partial payment for merchandise or for services rendered on merchandise, delivered at the time of the acceptance of the check, shall have a lien for the face amount of the check on the merchandise so delivered. Such liens shall occupy the same position as mechanics' liens and shall be perfected in the same manner as mechanics' liens.
  3. The payee of any check written in full or partial payment for merchandise or for services rendered on merchandise, delivered at the time of the acceptance of the check and on which the payer subsequently issues a stop payment order, shall have a lien for the face amount of the check on the merchandise so delivered if the stop payment order was issued within five days after the delivery of the merchandise. Such liens shall occupy the same position as mechanics' liens and shall be perfected in the same manner as mechanics' liens.

(Ga. L. 1972, p. 342, § 1; Ga. L. 1982, p. 3, § 44; Ga. L. 1983, p. 3, § 33; Ga. L. 1989, p. 805, § 1; Ga. L. 2000, p. 1589, § 4.)

The 2000 amendment, effective July 1, 2000, substituted "registered mail or statutory overnight delivery" for "registered mail" in paragraphs (a)(2) and (a)(3).

Cross references.

- Liability of parties on negotiable instruments generally, § 11-3-401 et seq.


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