---
title: O.C.G.A. § 11-4-503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need.
collection: code
id: 11-4-503
cite_as: O.C.G.A. § 11-4-503 (2025)
canonical_url: https://georgiacommons.org/code/11-4-503
md_url: https://georgiacommons.org/code/11-4-503.md
text_url: https://georgiacommons.org/code/11-4-503/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=538
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/11-4-502.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 DOCUMENTARY DRAFTS
---

# O.C.G.A. § 11-4-503. Responsibility of presenting bank for documents and goods; report of reasons for dishonor; referee in case of need.

Unless otherwise instructed and except as provided in Article 5 of this title, a bank presenting a documentary draft:

(1) Must deliver the documents to the drawee on acceptance of the draft if it is payable more than three days after presentment; otherwise, only on payment; and

(2) Upon dishonor, either in the case of presentment for acceptance or presentment for payment, may seek and follow instructions from any referee in case of need designated in the draft or, if the presenting bank does not choose to utilize the referee’s services, it must use diligence and good faith to ascertain the reason for dishonor, must notify its transferor of the dishonor and of the results of its effort to ascertain the reasons therefor, and must request instructions.

However, the presenting bank is under no obligation with respect to goods represented by the documents except to follow any reasonable instructions seasonably received; it has a right to reimbursement for any expense incurred in following instructions and to prepayment of or indemnity for those expenses.

## History

Code 1933, § 109A-4-503, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 14.