Title 11 — Commercial Code
0 chapters · 563 sections in this title.
O.C.G.A. § 11-4A-106 Time payment order is received
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(a) The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in Code Section 11-1-202. A receiving bank may fix a cut-off time or times on a funds-transfer business day for the…
O.C.G.A. § 11-4A-107 Federal Reserve regulations and operating circulars
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Regulations of the Board of Governors of the Federal Reserve System and operating circulars of the federal reserve banks supersede any inconsistent provision of this article to the extent of the inconsistency. History. Code 1981, § 11-4A-107, enacted by Ga. L. 1992, p. 2685, § 4;…
O.C.G.A. § 11-4A-108 Relationship to federal Electronic Fund Transfer Act
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Part 2 Issue and Acceptance of Payment Order 11-4A-201. Security procedure.
O.C.G.A. § 11-4A-201 Security procedure
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“Security procedure” means a procedure established by agreement of a customer and a receiving bank for the purpose of (i) verifying that a payment order or communication amending or canceling a payment order is that of the customer, or (ii) detecting error in the transmission or …
O.C.G.A. § 11-4A-202 Authorized and verified payment orders
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(a) A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. (b) If a bank and its customer have agreed that the authenticity of payment orders…
O.C.G.A. § 11-4A-203 Unenforceability of certain verified payment orders
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(a) If an accepted payment order is not, under Code Section 11-4A202(a), an authorized order of a customer identified as sender, but is 534 11-4A-204 effective as an order of the customer pursuant to Code Section 11-4A202(b), the following rules apply: (1) By express written agree…
O.C.G.A. § 11-4A-204 Refund of payment, §11-4A-204
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Verified orders, §11-4A-202. Unenforceability of certain orders, §11-4A-203. Restraining orders, §11-4A-503.
O.C.G.A. § 11-4A-205 Erroneous payment orders
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(a) If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed payment in an amount greater than the amou…
O.C.G.A. § 11-4A-207 Misdescription of beneficiary
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(a) Subject to subsection (b), if, in a payment order received by the beneficiary’s bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and accep…
O.C.G.A. § 11-4A-209 Acceptance of payment order
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(a) Subject to subsection (d), a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. 540 11-4A-209 (b) Subject to subsections (c) and (d), a beneficiary’s bank accepts a payment order at the earliest of the following times: (1) When …
O.C.G.A. § 11-4A-210 Rejection of payment order
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(a) A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally, electronically, or in writing. A notice of rejection need not use any particular words and is sufficient if it indicates that the receiving bank is rejecting the order…
O.C.G.A. § 11-4A-211 Cancellation and amendment of payment order
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(a) A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally, electronically, or in writing. If a security procedure is in effect between the sender and the receiving bank, the communication is not effective …
O.C.G.A. § 11-4A-212 Liability and duty of receiving bank regarding unaccepted payment order
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If a receiving bank fails to accept a payment order that it is obliged by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in this article, but does not otherwise have any duty to accept a payment order or, bef…
O.C.G.A. § 11-4A-301 Execution and execution date
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(a) A payment order is “executed” by the receiving bank when it issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficiary’s bank can be accepted but cannot be executed. (b) “Execution date” of a payment order m…
O.C.G.A. § 11-4A-302 Obligations of receiving bank in execution of payment order
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(a) Except as provided in subsections (b) through (d), if the receiving 545 11-4A-302 bank accepts a payment order pursuant to Code Section 11-4A-209(a), the bank has the following obligations in executing the order: (1) The receiving bank is obliged to issue, on the execution da…
O.C.G.A. § 11-4A-303 Erroneous execution of payment order
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(a) A receiving bank that (i) executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender’s order, or (ii) issues a payment order in execution of the sender’s order and then issues a duplicate order, is entitled to paymen…
O.C.G.A. § 11-4A-304 Duty of sender to report erroneously executed payment order
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If the sender of a payment order that is erroneously executed as stated in Code Section 11-4A-303 receives notification from the receiving bank that the order was executed or that the sender’s account was debited with respect to the order, the sender has a duty to exercise ordinar…
O.C.G.A. § 11-4A-305 Improper execution
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Liability, §11-4A-305. UNIFORM COMMERCIAL CODE —Cont’d Funds transfers —Cont’d Payment orders —Cont’d Execution —Cont’d Late execution. Liability, §11-4A-305. Liability, §11-4A-305. Obligations of receiving bank, §11-4A-302. Interest, §11-4A-506.
O.C.G.A. § 11-4A-401 Payment date
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“Payment date” of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary’s bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the 549 11-4A-402 be…
O.C.G.A. § 11-4A-402 Obligation of sender to pay receiving bank
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(a) This section is subject to Code Sections 11-4A-205 and 11-4A-207. (b) With respect to a payment order issued to the beneficiary’s bank, acceptance of the order by the bank obliges the sender to pay the bank the amount of the order, but payment is not due until the payment date…
O.C.G.A. § 11-4A-403 Payment by sender to receiving bank
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(a) Payment of the sender’s obligation under Code Section 11-4A-402 to pay the receiving bank occurs as follows: (1) If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a federal reserve bank or through a funds-transf…
O.C.G.A. § 11-4A-405 Payment by beneficiary’s bank to beneficiary
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(a) If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the bank’s obligation under Code Section 11-4A-404(a) occurs when and to the extent (i) the beneficiary is notified of the right to withdraw the credit, (ii) the bank lawfully applies t…
O.C.G.A. § 11-4A-406 Payment by originator to beneficiary; discharge of underlying obligation
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Part 5 Miscellaneous Provisions 11-4A-501. Variation by agreement and effect of funds-transfer system rule. 11-4A-502. Creditor process served on receiving bank; setoff by beneficiary’s bank.
O.C.G.A. § 11-4A-501 FUNGIBLE GOODS
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Documents of title. Overissue of documents for, §11-7-402. Warehouses. Commingled by warehouse, liability, §11-7-207. Overissue, insufficient to meet receipts, §11-7-207. Selling and delivering to buyer in ordinary course of business. Goods taken free of claims under warehouse re…
O.C.G.A. § 11-4A-502 Creditor process served on receiving bank; setoff by beneficiary’s bank
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11-4A-503. Injunction or restraining order with respect to funds transfer. 11-4A-504. Order in which items and payment orders may be charged to account; order of withdrawals from account. 11-4A-505. Preclusion of objection to debit of customer’s account. 11-4A-506. Rate of intere…
O.C.G.A. § 11-4A-504 Applicability of article, §11-4A-102
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Citation of article. Short title, §11-4A-101. Conflict of laws, §11-4A-507. Federal electronic fund transfer act, §§11-4A-107, 11-4A-108. 1072 INDEX UNIFORM COMMERCIAL CODE —Cont’d Funds transfers —Cont’d Conflict of laws —Cont’d Federal reserve regulations and operating circulars,…
O.C.G.A. § 11-4A-505 Preclusion of objection to debit of customer’s account
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If a receiving bank has received payment from its customer with respect to a payment order issued in the name of the customer as sender and accepted by the bank, and the customer received notification reasonably identifying the order, the customer is precluded from asserting that …
O.C.G.A. § 11-4A-506 Rate of interest
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(a) If, under this article, a receiving bank is obliged to pay interest with respect to a payment order issued to the bank, the amount payable may be determined (i) by agreement of the sender and receiving bank, 558 11-4A-507 or (ii) by a funds-transfer system rule if the payment…
O.C.G.A. § 11-4A-507 Choice of law
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(a) The following rules apply unless the affected parties otherwise agree or subsection (c) applies: (1) The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located. (2)…
O.C.G.A. § 11-5-101 Short title
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This article may be cited as “Uniform Commercial Code — Letters of Credit.” History. Code 1981, § 11-5-101, enacted by Ga. L. 2002, p. 995, § 1.
O.C.G.A. § 11-5-102 Definitions
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(a) As used in this article, the term: (1) “Adviser” means a person who at the request of the issuer, a confirmer, or another adviser, notifies or requests another adviser to notify the beneficiary that a letter of credit has been issued, confirmed, or amended. (2) “Applicant” means …
O.C.G.A. § 11-5-103 Scope
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(a) This article applies to letters of credit and to certain rights and obligations arising out of transactions involving letters of credit. (b) The statement of a rule in this article does not by itself require, imply, or negate application of the same or a different rule to a s…
O.C.G.A. § 11-5-104 Formal requirements
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A letter of credit, confirmation, advice, transfer, amendment, or cancellation may be issued in any form that is a record and is authenticated: (1) By a signature; or (2) In accordance with the agreement of the parties or the standard practice referred to in subsection (e) of Code…
O.C.G.A. § 11-5-105 Consideration
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Consideration is not required to issue, amend, transfer, or cancel a letter of credit, advice, or confirmation. History. Code 1981, § 11-5-105, enacted by Ga. L. 2002, p. 995, § 1.
O.C.G.A. § 11-5-106 Issuance, amendment, cancellation, and duration
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(a) A letter of credit is issued and becomes enforceable according to its terms against the issuer when the issuer sends or otherwise transmits it to the person requested to advise or to the beneficiary. A letter of credit is revocable only if it provides that it is revocable. (b)…
O.C.G.A. § 11-5-107 Confirmer, nominated person, and adviser
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(a) A confirmer is directly obligated on a letter of credit and has the rights and obligations of an issuer to the extent of its confirmation. The confirmer also has rights against and obligations to the issuer as if the issuer were an applicant and the confirmer had issued the lette…
O.C.G.A. § 11-5-108 Issuer’s rights and obligations
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(a) Except as otherwise provided in Code Section 11-5-109, an issuer shall honor a presentation that, as determined by the standard practice referred to in subsection (e) of this Code section, appears on its face strictly to comply with the terms and conditions of the letter of c…
O.C.G.A. § 11-5-109 Fraud and forgery
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(a) If a presentation is made that appears on its face strictly to comply with the terms and conditions of the letter of credit, but a required document is forged or materially fraudulent, or honor of the presentation would facilitate a material fraud by the beneficiary on the iss…
O.C.G.A. § 11-5-110 Warranties
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(a) If its presentation is honored, the beneficiary warrants: (1) To the issuer, any other person to whom presentation is made, and the applicant that there is no fraud or forgery of the kind described in subsection (a) of Code Section 11-5-109; and (2) To the applicant that the d…
O.C.G.A. § 11-5-111 Remedies
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(a) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a letter of credit before presentation, the beneficiary, successor, or nominated person presenting on its own behalf may recover from the issuer the amount that is the subject of the dishonor or …
O.C.G.A. § 11-5-112 Transfer of letter of credit
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(a) Except as otherwise provided in Code Section 11-5-113, unless a letter of credit provides that it is transferable the right of a beneficiary to draw or otherwise demand performance under a letter of credit may not be transferred. (b) Even if a letter of credit provides that it…
O.C.G.A. § 11-5-113 Transfer by operation of law
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(a) A successor of a beneficiary may consent to amendments, sign and present documents, and receive payment or other items of value in the name of the beneficiary without disclosing its status as a successor. (b) A successor of a beneficiary may consent to amendments, sign and prese…
O.C.G.A. § 11-5-114 Assignment of proceeds
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(a) As used in this Code section, the term “proceeds of a letter of credit” means the cash, check, accepted draft, or other item of value paid or delivered upon honor or giving of value by the issuer or any nominated person under the letter of credit. The term does not include a …
O.C.G.A. § 11-5-115 Statute of limitations
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An action to enforce a right or obligation arising under this article must be commenced within one year after the expiration date of the relevant letter of credit or one year after the cause of action accrues, whichever occurs later. A cause of action accrues when the breach occu…
O.C.G.A. § 11-5-116 Choice of law and forum
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(a) The liability of an issuer, nominated person, or adviser for any action or omission is governed by the law of the jurisdiction chosen by an agreement in the form of a record signed or otherwise authenticated by the affected parties in the manner provided in Code Section 11-5-…
O.C.G.A. § 11-5-117 Subrogation of issuer, applicant, and nominated person
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(a) An issuer that honors a beneficiary’s presentation is subrogated to the rights of the beneficiary to the same extent as if the issuer were a secondary obligor of the underlying obligation owed to the beneficiary and of the applicant to the same extent as if the issuer were the s…
O.C.G.A. § 11-5-118 Security interest of issuer or nominated person
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(a) An issuer or nominated person has a security interest in a document presented under a letter of credit to the extent that the issuer or nominated person honors or gives value for the presentation. (b) So long as and to the extent that an issuer or nominated person has not bee…
O.C.G.A. § 11-7-101 Short title
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This article shall be known and may be cited as “Uniform Commercial Code — Documents of Title.” History. Code 1933, § 109A-7-101, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 1-1/HB 451. Editor’s notes. Ga. L. 2010, p. 481, § 3-1/HB 451, not codified by the General …
O.C.G.A. § 11-7-102 Definitions and index of definitions
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(a) In this article, unless the context otherwise requires: (1) “Bailee” means a person that by a warehouse receipt, bill of lading, or other document of title acknowledges possession of goods and contracts to deliver them. (2) “Carrier” means a person that issues a bill of ladin…
O.C.G.A. § 11-7-103 Relation of article to treaty or statute
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(a) Except as otherwise provided in this article, this article is subject to any treaty or statute of the United States to the extent the treaty or statute is applicable. (b) This article does not modify or repeal any law prescribing the form or content of a document of title or …