---
title: O.C.G.A. § 11-4-202. Responsibility for collection or return; when action timely.
collection: code
id: 11-4-202
cite_as: O.C.G.A. § 11-4-202 (2025)
canonical_url: https://georgiacommons.org/code/11-4-202
md_url: https://georgiacommons.org/code/11-4-202.md
text_url: https://georgiacommons.org/code/11-4-202/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t11-(v9)-2022-pdf.pdf?sfvrsn=b5451bbd_0#page=495
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/code/11-4.md
previous: https://georgiacommons.org/code/11-4-201.md
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index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: "COMMERCIAL CODE / BANK DEPOSITS AND COLLECTIONS / COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS"
---

# O.C.G.A. § 11-4-202. Responsibility for collection or return; when action timely.

(a) A collecting bank must exercise ordinary care in:

(1) Presenting an item or sending it for presentment;

(2) Sending notice of dishonor or nonpayment or returning an item other than a documentary draft to the bank’s transferor after learning that the item has not been paid or accepted, as the case may be;

(3) Settling for an item when the bank receives final settlement; and

(4) Notifying its transferor of any loss or delay in transit within a reasonable time after discovery thereof.

(b) A collecting bank exercises ordinary care under subsection (a) of this Code section by taking proper action before its midnight deadline following receipt of an item, notice, or settlement. Taking proper action within a reasonably longer time may constitute the exercise of ordinary care, but the bank has the burden of establishing timeliness.

(c) Subject to paragraph (1) of subsection (a) of this Code section, a bank is not liable for the insolvency, neglect, misconduct, mistake, or default of another bank or person or for loss or destruction of an item in the possession of others or in transit.

## History

Code 1933, § 109A-4-202, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 6.