GA Code § 18-2-40 (2021)
2021 Georgia Code|Title 18 - Debtor and Creditor|Chapter 2 - Debtor and Creditor Relations|Article 3 - Preferences and Assignments for Benefit of Creditors|§ 18-2-40. Right of Debtor to Prefer Creditors

 A debtor may prefer one creditor over another; and to that end he may rightfully give a lien by mortgage or other legal means, sell in payment of the debt, or transfer choses in action as collateral security, where the surplus in such cases is not reserved for the debtor's own benefit.   (Orig. Code 1863, § 1955; Code 1868, § 1943; Code 1873, § 1953; Code 1882, § 1953; Civil Code 1895, § 2697; Civil Code 1910, § 3230; Code 1933, § 28-301.)   Law reviews.   - For article, "Preparing the Georgia Farmer (or Other Small Entrepreneur) for Bankruptcy," see 22 Ga. St. B.J. 186 (1986). For note discussing assignments for benefit of creditors, see 12 Ga. L. Rev. 814 (1978).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Conveyances Between Spouses   Preferences by Corporate Officers   Assignments   Actions    RESEARCH REFERENCES   C.J.S.   - 21C.J.S., Creditor and Debtor, § 3 et seq. 37 C.J.S., Fraudulent Conveyances, §§ 112, 115.   ALR.    - Conveyance in consideration of future support as fraudulent against creditors, 2 A.L.R. 1438; 23 A.L.R. 584.    Attachment or execution creditor as purchaser within rule that first of two purchasers to obtain possession will prevail, 21 A.L.R. 1031.    Right of surety who discharges obligation due to government to be subrogated to priority or preference of latter, 24 A.L.R. 1502; 83 A.L.R. 1131.    Right of surety discharges obligation due to government, to be subrogated to rights of latter against third persons, 24 A.L.R. 1523.    Priority as between different assignees of same chose in action as affected by notice to debtor, 31 A.L.R. 876; 110 A.L.R. 774.    Preference in event of debtor's insolvency in respect of funds designated or set apart by him for payment of specified obligations, 32 A.L.R. 950.    Right of debtor who pays creditor to control application of payments made by latter to his creditor with proceeds of original payment, 41 A.L.R. 1297; 130 A.L.R. 198; 166 A.L.R. 641.    Character of service contemplated by statutes giving a lien or preference, in event of insolvency, to servants, employees, laborers, etc, 54 A.L.R. 567.    Trust or preference in respect of money deposited in bank by court, or pursuant to its order, or by officer of court, 86 A.L.R. 209.    State's prerogative right of preference at common law, 90 A.L.R. 184; 167 A.L.R. 640.    Right of creditor who institutes supplementary proceedings to priority over other creditors in respect of property disclosed thereby, 92 A.L.R. 1435; 153 A.L.R. 211.    Conflict of laws as regards validity of fraudulent and preferential transfers and assignments, 111 A.L.R. 787.    Equality among claimants under indemnity or surety bond which is insufficient to pay all claimants in full, 128 A.L.R. 1096.   Judgment debtor's personal injury claims against third person or latter's liability insurer as subject to creditor's bill, 51 A.L.R.2d 595.   Debtor's return of merchandise to selling creditor for credit as preferential transfer voidable in bankruptcy proceedings, 62 A.L.R.2d 774.   Right of creditor to set up statute of limitations against other creditors of his debtor, 71 A.L.R.2d 1049.   Validity of provision in deed or transfer to assignee for benefit of creditors for payment of attorneys' fees, 79 A.L.R.2d 513.   Creditor's knowledge of preference, or of debtor's insolvency, under § 60(b) of Bankruptcy Act, as indicated by receipt of property in payment of debt, 88 A.L.R.2d 1050.