GA Code § 11-4-201 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 4 - Bank Deposits and Collections|Part 2 - Collection of Items: Depositary and Collecting Banks|§ 11-4-201. Status of Collecting Bank as Agent and Provisional Status of Credits; Applicability of Article; Item Indorsed "Pay Any bank."

  Unless a contrary intent clearly appears and before the time that a settlement given by a collecting bank for an item is or becomes final, the bank, with respect to the item, is an agent or subagent of the owner of the item and any settlement given for the item is provisional. This provision applies regardless of the form of indorsement or lack of indorsement and even though credit given for the item is subject to immediate withdrawal as of right or is in fact withdrawn; but the continuance of ownership of an item by its owner and any rights of the owner to proceeds of the item are subject to rights of a collecting bank, such as those resulting from outstanding advances on the item and rights of recoupment or setoff. If an item is handled by banks for purposes of presentment, payment, collection, or return, the relevant provisions of this article apply even though action of the parties clearly establishes that a particular bank has purchased the item and is the owner of it.   After an item has been indorsed with the words "pay any bank" or the like, only a bank may acquire the rights of a holder until the item has been:   Returned to the customer initiating collection; or   Specially indorsed by a bank to a person who is not a bank.      (Code 1933, § 109A-4 - 201, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1996, p. 1306, § 6.)   OPINIONS OF THE ATTORNEY GENERAL   O.C.G.A.    § 11-4-201 not restrictive of bank's freedom. - Neither O.C.G.A. T. 7 nor T. 11 restricts in any way a bank's freedom to decide how it will treat any particular collection item, whether it be a check or a credit union share draft. 1977 Op. Att'y Gen. No. 77-2.   Credit union share drafts.   - Banks not required to process credit union share drafts as cash items, rather than as drafts for collection. 1977 Op. Att'y Gen. No. 77-2.   RESEARCH REFERENCES   Am. Jur. 2d.   - 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 972, 976. 11 Am. Jur. 2d, Bills and Notes, § 249.   C.J.S.   - 9 C.J.S., Banks and Banking, §§ 383 et seq., 415, 425 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 4-201.   ALR.    - Fraud or other defense to check as available against paper issued by drawee bank in payment of check, 9 A.L.R. 963.    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.    Liability of collecting bank for loss of funds through attachment thereof, 36 A.L.R. 742.    Liability of bank taking commercial paper for collection for default of correspondent, 36 A.L.R. 1308; 44 A.L.R. 1430; 80 A.L.R. 815.    Title to commercial paper deposited by the customer of a bank to his account, 42 A.L.R. 492; 68 A.L.R. 725; 99 A.L.R. 486.   Bank's right to apply or set off deposit against debt of depositor not due at time of his death, 7 A.L.R.3d 908.