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Can you summarize GACO 11-4-215?
Collection of Items: Depositary and Collecting Banks > Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
Short Summary
This legal document, found in the Georgia Code under the Commercial Code section on Bank Deposits and Collections, specifically addresses the final payment of items by payor banks, the timing of when provisional debits and credits become final, and when certain credits become available for withdrawal. According to the document, an item is considered finally paid by a payor bank when it is paid in cash, settled without the right to revoke the settlement, or when a provisional settlement is made and not revoked within the permitted time. If provisional settlement does not become final, the item is not considered finally paid. Provisional debits or credits for an item become final between presenting and payor banks or between presenting and successive prior collecting banks seriatim upon final payment of the item by the payor bank. If a collecting bank receives a settlement for an item that becomes final, the bank is accountable to its customer for the amount of the item, and any provisional credit given for the item becomes final. The document also outlines the availability of funds for withdrawal, stating that credit given by a bank for an item in a customer’s account becomes available for withdrawal as of right when the settlement becomes final and the bank has had a reasonable time to receive the item but it has not been received within that time. Additionally, it mentions that a deposit of money becomes available for withdrawal as of right at the opening of the bank’s next banking day after receipt of the deposit.
Whom does it apply to?
Payor banks, presenting banks, successive prior collecting banks, and collecting banks.
What does it govern?
Final payment of item by payor bank; when provisional debits and credits become final; when certain credits become available for withdrawal.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Georgia