Georgia CommonsTitle 11. COMMERCIAL CODE · Chapter 4A. · Article 4A. FUNDS TRANSFERS · Part 2. ISSUE AND ACCEPTANCE OF PAYMENT ORDER
11-4A-210. Rejection of payment order.
Current through: Including Acts of the 2025 Regular Session of the General Assembly.
- (a)
A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving bank is rejecting the order or will not execute or pay the order. Rejection is effective when the notice is given if transmission is by a means that is reasonable in the circumstances. If notice of rejection is given by a means that is not reasonable, rejection is effective when the notice is received. If an agreement of the sender and receiving bank establishes the means to be used to reject a payment order, (i) any means complying with the agreement is reasonable and (ii) any means not complying is not reasonable unless no significant delay in receipt of the notice resulted from the use of the noncomplying means.#
- (b)
This subsection applies if a receiving bank other than the beneficiary’s bank fails to execute a payment order despite the existence on the execution date of a withdrawable credit balance in an authorized account of the sender sufficient to cover the order. If the sender does not receive notice of rejection of the order on the execution date and the authorized account of the sender does not bear interest, the bank is obliged to pay interest to the sender on the amount of the order for the number of days elapsing after the execution date to the earlier of the day the order is canceled pursuant to Code Section 11-4A-211(d) or the day the sender receives notice or learns that the order was not executed, counting the final day of the period as an elapsed day. If the withdrawable credit balance during that period falls below the amount of the order, the amount of interest is reduced accordingly.#
- (c)
If a receiving bank suspends payments, all unaccepted payment orders issued to it are deemed rejected at the time the bank suspends payments.#
- (d)
Acceptance of a payment order precludes a later rejection of the order. Rejection of a payment order precludes a later acceptance of the order.#
History
Code 1981, § 11-4A-210, enacted by Ga. L. 1992, p. 2685, § 4; Ga. L. 2024, p. 817, § 5-28/HB 1240, effective July 1, 2024.
Amendments
The 2024 amendment, effective July 1, 2024, substituted “or in a record” for “, electronically, or in writing” at the end of the first sentence of subsection (a).
Editor's notes
Ga. L. 2024, p. 817, § 1-1/HB 1240, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Uniform Commercial Code Modernization Act of 2024.’” Ga. L. 2024, p. 817, § 1-2/HB 1240, not codified by the General Assembly, provides: “Nothing in this Act shall be construed to support, endorse, create, or implement a national digital currency.”
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Current through: Including Acts of the 2025 Regular Session of the General Assembly.
Text read from t11-(v9)-pdf.pdf, Volume V9, 2022 edition, 2025 supplement, pages 51 to 52; merge action: replaced; file SHA-256 df9393c4ba3b.
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