If a customer delivers an item to a depositary bank for collection:
- 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
- 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.
History. Code 1933, § 109A-4-205, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 6.
Law reviews.
For article discussing judicial activism in cases involving claims and defenses under the Uniform Commercial Code, see 17 Ga. L. Rev. 569 (1983).