GA Code § 11-4-401 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 4 - Bank Deposits and Collections|Part 4 - Relationship Between Payor Bank and Its Customer|§ 11-4-401. When Bank May Charge Customer's Account

  A bank may charge against the account of a customer an item that is properly payable from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with any agreement between the customer and bank.   A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item.   A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in subsection (b) of Code Section 11-4-403 for stop-payment orders, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in Code Section 11-4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under Code Section 11-4-402.   A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:   The original terms of the altered item; or   The terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.      (Code 1933, § 109A-4 - 401, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 13.)   Law reviews.   - For article surveying Georgia cases in the area of commercial law from June 1979 through May 1980, see 32 Mercer L. Rev. 11 (1980). For comment on Perini Corp. v. First Nat'l Bank, 553 F.2d 398 (5th Cir. 1977), see 27 Emory L.J. 393 (1978).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Payment of Overdrafts    RESEARCH REFERENCES   Am. Jur. 2d.   - 10 Am. Jur. 2d, Banks and Financial Institutions, §§ 770, 779 et seq.   C.J.S.   - 9 C.J.S., Banks and Banking, § 341 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 4-401.   ALR.    - Banks: effect of overcertification of check, 2 A.L.R. 86.    Effect of verbal order with respect to payment of check or transfer of bank deposit, 2 A.L.R. 175.    Acceptance of checks by telegraph or telephone, 2 A.L.R. 1146; 13 A.L.R. 989.    Right of drawee bank to charge back a credit given on a forged check, 5 A.L.R. 1566.    Right of bank to recover amount of overdraft from depositor, 12 A.L.R. 360.    Right of bank to charge back check drawn upon itself, which it has credited to a depositor under mistaken belief that the drawer's account is good, 15 A.L.R. 709.    Burden of proof as to alteration not apparent on face of instrument, 31 A.L.R. 1455.    Duty of bank to prior parties to the paper to apply deposit to credit of endorser on paper owned by bank, 37 A.L.R. 578.    Bank's right to recover back money paid on stopped check, 39 A.L.R. 1239.    Rights and duties where check is presented to bank which exceeds balance on deposit, 62 A.L.R. 187.    Bank depositor's act in seeking restitution from third person to whom, or for benefit of whom, the bank has paid out the deposit, as election of remedy precluding action against bank, 144 A.L.R. 1440.