Georgia § 11-4-210 - Security interest of collecting bank in items, accompanying documents, and proceeds.

§ 11-4-210. Security interest of collecting bank in items, accompanying documents, and proceeds.

A collecting bank has a security interest in an item and any accompanying documents or the proceeds of either: In case of an item deposited in an account, to the extent to which credit given for the item has been withdrawn or applied; In case of an item for which it has given credit available for withdrawal as of right, to the extent of the credit given, whether or not the credit is drawn upon or there is a right of charge-back; or If it makes an advance on or against the item. If credit given for several items received at one time or pursuant to a single agreement is withdrawn or applied in part, the security interest remains upon all the items, any accompanying documents, or the proceeds of either. For the purpose of this Code section, credits first given are first withdrawn. Receipt by a collecting bank of a final settlement for an item is a realization on its security interest in the item, accompanying documents, and proceeds. So long as the bank does not receive final settlement for the item or give up possession of the item or possession or control of the accompanying documents for purposes other than collection, the security interest continues to that extent and is subject to Article 9 of this title, but: No security agreement is necessary to make the security interest enforceable (subparagraph (b)(3)(A) of Code Section 11-9-203 ); No filing is required to perfect the security interest; and The security interest has priority over conflicting perfected security interests in the item, accompanying documents, or proceeds. (Code 1933, § 109A-4 - 208, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1963, p. 188, § 12; Code 1981, § 11-4-210 , as redesignated by Ga. L. 1996, p. 1306, § 9; Ga. L. 2001, p. 362, § 13; Ga. L. 2010, p. 481, § 2-17/HB 451.) The 2001 amendment, effective July 1, 2001, substituted "(subparagraph (b)(3)(A) of Code Section 11-9-203)" for "(paragraph (a) of subsection (1) of Code Section 11-9-203)" in paragraph (c)(1). The 2010 amendment, effective May 27, 2010, inserted a comma after "credit given" near the middle of paragraph (a)(2); and inserted "possession or control of the" in the middle of the second sentence of subsection (c). See the Editor's notes for applicability. Editor's notes. - Ga. L. 1996, p. 1306, § 9, effective July 1, 1996, renumbered former Code Section 11-4-208 as present Code Section 11-4-210 and renumbered former Code Section 11-4-210 as present Code Section 11-4-212. Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010. Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010. Law reviews. - For article discussing judicial activism in cases involving claims and defenses under the Uniform Commercial Code, see 17 Ga. L. Rev. 569 (1983).