GA Code § 11-4-403 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 4 - Bank Deposits and Collections|Part 4 - Relationship Between Payor Bank and Its Customer|§ 11-4-403. Customer's Right to Stop Payment; Burden of Proof of Loss

  A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer's account or close the account by an order to the bank describing the item or account with reasonable certainty received at a time and in a manner that affords the bank a reasonable opportunity to act on it before any action by the bank with respect to the item described in Code Section 11-4-303. If the signature of more than one person is required to draw on an account, any of these persons may stop payment or close the account.   A stop-payment order is effective for six months, but it lapses after 14 calendar days if the original order was oral and was not confirmed in writing within that period. A stop-payment order may be renewed for additional six-month periods by a writing given to the bank within a period during which the stop-payment order is effective.   The burden of establishing the fact and amount of loss resulting from the payment of an item contrary to a stop-payment order or order to close an account is on the customer. The loss from payment of an item contrary to a stop-payment order may include damages for dishonor of subsequent items under Code Section 11-4-402.    (Code 1933, § 109A-4 - 403, 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).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Effect of Underlying Obligation    OPINIONS OF THE ATTORNEY GENERAL    Cashier's checks  are essentially unconditional promises to pay with respect to which the issuing bank may stop payment only on the grounds of mistake and want of consideration and only where the instrument is in the hands of the original payee. In the case of a bank draft, however, the drawer bank may stop payment on the bank draft at any time prior to action by the drawee and raise any valid claim it may have in defense of its action. 1989 Op. Att'y Gen. No. 89-15. Georgetown Village Apts. v. Fontana, 92 Bankr. 559 (Bankr. M.D. Ga. 1988).    A bank does not render a bank draft a cashier's check by imprinting the words "cashier check" on the draft, and by labeling its bank draft as a cashier's check, the issuing bank also does not waive its right to stop payment under O.C.G.A. § 11-4-403. 1989 Op. Att'y Gen. No. 89-15.    Bank not obligated to honor customer's stop-payment order on cashier's check issued on customer's behalf.  1977 Op. Att'y Gen. No. 77-16.   RESEARCH REFERENCES   Am. Jur. 2d.   - 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 955, 957. 12 Am. Jur. 2d, Bills and Notes, §§ 456, 457.   C.J.S.   - 9 C.J.S., Banks and Banking, §§ 326, 352 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 4-403.   ALR.    - Liability of drawer who stops payment of check, 14 A.L.R. 562.    Right of bank to repudiate payment to foreign correspondent, 23 A.L.R. 1232.    Liability of bank which pays checks after filing of petition in bankruptcy against drawer, 31 A.L.R. 256; 54 A.L.R. 751.    Right of drawer to stop payment of certified check, 35 A.L.R. 942.    Bank's right to recover back money paid on stopped check, 39 A.L.R. 1239.    Right to countermand, or stop payment on, cashier's check, 56 A.L.R. 532; 107 A.L.R. 1463.    Sufficiency, as regards mode of communication and content, of order to bank to stop payment of check, 88 A.L.R. 741.   Stipulation relieving bank from, or limiting its liability for disregard of, stop-payment order, 1 A.L.R.2d 1155.   What conduct by drawee of check before receipt of stop-payment order, renders order ineffectual, 10 A.L.R.2d 428.   Bank's liability for its payment of check drawn by one depositor after stop-payment order by a joint depositor, 55 A.L.R.2d 975.   Uniform Commercial Code: Bank's right to stop payment on its own uncertified check or money order, 97 A.L.R.3d 714.   Banks and banking: construction and effect of UCC § 4-403(2) regulating oral or written nature of stop-payment order, 29 A.L.R.4th 228.   Sufficiency of description of check in stop-payment order under UCC § 4-403, 35 A.L.R.4th 985.