Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 4. · Article 4. BANK DEPOSITS AND COLLECTIONS · Part 2. COLLECTION OF ITEMS: DEPOSITARY AND COLLECTING BANKS

11-4-205. Depositary bank holder of unindorsed item.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

If a customer delivers an item to a depositary bank for collection:
(1)
The depositary bank becomes a holder of the item at the time it receives the item for collection if the customer at the time of delivery was a holder of the item, whether or not the customer indorses the item, and, if the bank satisfies the other requirements of Code Section 11-3-302, it is a holder in due course; and#
(2)
The depositary bank warrants to collecting banks, the payor bank or other payor, and the drawer that the amount of the item was paid to the customer or deposited to the customer’s account.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

Code 1933, § 109A-4-205, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 6.

For article discussing judicial activism in cases involving claims and defenses under the Uniform Commercial Code, see 17 Ga. L. Rev. 569 (1983).

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, page 498; merge action: carried; file SHA-256 ad397fccbf21.