Background. The Georgia Supreme Court ruled that a bank's failure to reject and return late payments made by a church on its mortgage loan did not prevent the bank from foreclosing on the church's property. A church purchased property on which it operated worship services and church activities. The purchase was financed by a local bank which retained a mortgage to secure debt for the amount of $184,000. The church signed a promissory note agreeing to pay the principal in 34 installment payments of $2,003 followed by a balloon payment of $166,000.
A few years later, the bank informed the church that the balance of the note would be accelerated unless the church paid $10,000 to cover past due amounts. Specifically, this amount was needed to cover the nonpayment of two monthly payments plus a check the church had issued that had been returned for insufficient funds. The bank gave the church 30 days to pay the past due sums and to make good the insufficient funds check, but required that any such payment be by cashier check, money order, certified funds, or cash.