GA Code § 11-4-207 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 4 - Bank Deposits and Collections|Part 2 - Collection of Items: Depositary and Collecting Banks|§ 11-4-207. Transfer Warranties

  A customer or collecting bank that transfers an item and receives a settlement or other consideration warrants to the transferee and to any subsequent collecting bank that:   The warrantor is a person entitled to enforce the item;   All signatures on the item are authentic and authorized;   The item has not been altered;   The item is not subject to a defense or claim in recoupment (subsection (a) of Code Section 11-3-305) of any party that can be asserted against the warrantor; and   The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer.     If an item is dishonored, a customer or collecting bank transferring the item and receiving settlement or other consideration is obliged to pay the amount due on the item according to the terms of the item at the time it was transferred, or, if the transfer was of an incomplete item, according to its terms when completed as stated in Code Sections 11-3-115 and 11-3-407. The obligation of a transferor is owed to the transferee and to any subsequent collecting bank that takes the item in good faith. A transferor cannot disclaim its obligation under this subsection by an indorsement stating that it is made "without recourse" or otherwise disclaiming liability.   A person to whom the warranties under subsection (a) of this Code section are made and who took the item in good faith may recover from the warrantor as damages for breach of warranty an amount equal to the loss suffered as a result of the breach, but not more than the amount of the item plus expenses and loss of interest incurred as a result of the breach.   The warranties stated in subsection (a) of this Code section cannot be disclaimed with respect to checks. Unless notice of a claim for breach of warranty is given to the warrantor within 30 days after the claimant has reason to know of the breach and the identity of the warrantor, the warrantor is discharged to the extent of any loss caused by the delay in giving notice of the claim.   A cause of action for breach of warranty under this Code section accrues when the claimant has reason to know of the breach.    (Code 1933, § 109A-4 - 207, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 7.)   Law reviews.   - For comment on Trust Co. of Columbus v. Refrigeration Supplies, Inc., 241 Ga. 406, 246 S.E.2d 282 (1978), discussing liability of collecting and payor banks for payment of check over missing endorsement of copayee, see 13 Ga. L. Rev. 677 (1979).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Forgeries   Bank's Duty Regarding Endorsements   Claim for Breach of Warranty    RESEARCH REFERENCES   Am. Jur. 2d.   - 10 Am. Jur. 2d, Banks and Financial Institutions, § 721. 11 Am. Jur. 2d, Banks and Financial Institutions, § 895. 11 Am. Jur. 2d, Bills and Notes, § 389. 12 Am. Jur. 2d, Bills and Notes, § 522 et seq.   C.J.S.   - 9 C.J.S., Banks and Banking, § 420 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 4-207.   ALR.    - Banks: effect of overcertification of check, 2 A.L.R. 86.    Measure of damages for breach of duty by bank in respect to collection of commercial paper, 19 A.L.R. 555; 67 A.L.R. 1511.    Trust in proceeds of collections made by charging debtor's account in collecting bank, 24 A.L.R. 1152; 42 A.L.R. 754; 47 A.L.R. 761; 77 A.L.R. 473.    Rights and remedies of purchaser of draft, payable to third person, against drawer where draft is not paid, 71 A.L.R. 1454.    Title to commercial paper deposited by customer of bank to his account, 99 A.L.R. 486.    Arrangement or course of dealing between forwarding bank and collecting bank as affecting relations or rights as between depositor of collection item and the collecting bank, 118 A.L.R. 363.   Right and remedy of drawer of check against collecting bank which receives it on forged endorsement and collects it from drawee bank, 99 A.L.R.2d 637.   Bank's liability for payment or withdrawal on less than required number of signatures, 7 A.L.R.4th 655.   Liability of bank for diversion to benefit of presenter or third party of proceeds of check drawn to bank's order by drawer not indebted to bank, 69 A.L.R.4th 778.