reglab/statecodes huggingface dataset:
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 1 - GENERAL PROVISIONS (§§ 11-9-101 — 11-9-111) › Subpart 2 - APPLICABILITY OF ARTICLE (§§ 11-9-109 — 11-9-111) › Section 11-9-110 - Security interests arising under Article 2 or 2A of this title

A security interest arising under Code Section
11-2-401
or
11-2-505
, subsection (3) of Code Section
11-2-711
, or subsection (5) of Code Section
11-2A-508
is subject to this article. However, until the debtor obtains possession of the goods:
(1)
The security interest is enforceable, even if paragraph (3) of subsection (b) of Code Section
11-9-203
has not been satisfied;
(2)
Filing is not required to perfect the security interest;
(3)
The rights of the secured party after default by the debtor are governed by Article 2 or 2A of this title; and
(4)
The security interest has priority over a conflicting security interest created by the debtor.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 1 - GENERAL PROVISIONS (§§ 11-9-101 — 11-9-111) › Subpart 2 - APPLICABILITY OF ARTICLE (§§ 11-9-109 — 11-9-111) › Section 11-9-111 - [Repealed] Applicability of bulk transfer laws

Repealed by 2015 Ga. Laws 167,§ 3D-2, eff. 1/1/2016.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 1 - EFFECTIVENESS AND ATTACHMENT (§§ 11-9-201 — 11-9-206) › Section 11-9-201 - General effectiveness of security agreement

(a)
General effectiveness.
Except as otherwise provided in this title, a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors.
(b)
Applicable consumer laws and other law.
A transaction subject to this article is subject to any applicable rule of law which establishes a different rule for consumers and is subject to Chapter 3 of Title 7; Chapter 4 of Title 7; and Article 1 of Chapter 1 of Title 10.
(c)
Other applicable law controls.
In case of conflict between this article and a rule of law, statute, or regulation described in subsection (b) of this Code section, the rule of law, statute, or regulation controls. Failure to comply with a statute or regulation described in subsection (b) of this Code section has only the effect the statute or regulation specifies.
(d)
Further deference to other applicable law.
This article does not:
(1)
Validate any rate, charge, agreement, or practice that violates a rule of law, statute, or regulation described in subsection (b) of this Code section; or
(2)
Extend the application of the rule of law, statute, or regulation to a transaction not otherwise subject to it.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 1 - EFFECTIVENESS AND ATTACHMENT (§§ 11-9-201 — 11-9-206) › Section 11-9-202 - Title to collateral immaterial

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this article with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 1 - EFFECTIVENESS AND ATTACHMENT (§§ 11-9-201 — 11-9-206) › Section 11-9-204 - After acquired property; future advances

(a)
After acquired collateral.
Except as otherwise provided in subsection (b) of this Code section, a security agreement may create or provide for a security interest in after acquired collateral.
(b)
When after acquired property clause not effective.
Subject to subsection (b.1) of this Code section, a security interest does not attach under a term constituting an after acquired property clause to:
(1)
Consumer goods, other than an accession when given as additional security, unless the debtor acquires rights in them within ten days after the secured party gives value; or
(2)
A commercial tort claim.
(b.1)
Limitation on subsection (b) of this Code section.
Subsection (b) of this Code section does not prevent a security interest from attaching:
(1)
To consumer goods as proceeds under subsection (a) of Code Section
11-9-315
or commingled goods under subsection (c) of Code Section
11-9-336
;
(2)
To a commercial tort claim as proceeds under subsection (a) of Code Section
11-9-315
; or
(3)
Under an after-acquired property clause to property that is proceeds of consumer goods or a commercial tort claim.
(c)
Future advances and other value.
A security agreement may provide that collateral secures, or that accounts, chattel paper, payment intangibles, or promissory notes are sold in connection with, future advances or other value, whether or not the advances or value are given pursuant to commitment.
Amended by 2024 Ga. Laws 600,§ 5-47, eff. 7/1/2024.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 1 - EFFECTIVENESS AND ATTACHMENT (§§ 11-9-201 — 11-9-206) › Section 11-9-205 - Use or disposition of collateral permissible

(a)
When security interest not invalid or fraudulent.
A security interest is not invalid or fraudulent against creditors solely because:
(1)
The debtor has the right or ability to:
(A)
Use, commingle, or dispose of all or part of the collateral, including returned or repossessed goods;
(B)
Collect, compromise, enforce, or otherwise deal with collateral;
(C)
Accept the return of collateral or make repossessions; or
(D)
Use, commingle, or dispose of proceeds; or
(2)
The secured party fails to require the debtor to account for proceeds or replace collateral.
(b)
Requirements of possession not relaxed.
This Code section does not relax the requirements of possession if attachment, perfection, or enforcement of a security interest depends upon possession of the collateral by the secured party.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 1 - EFFECTIVENESS AND ATTACHMENT (§§ 11-9-201 — 11-9-206) › Section 11-9-206 - Security interest arising in purchase or delivery of financial asset

(a)
Security interest when person buys through securities intermediary.
A security interest in favor of a securities intermediary attaches to a person's security entitlement if:
(1)
The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and
(2)
The securities intermediary credits the financial asset to the buyer's securities account before the buyer pays the securities intermediary.
(b)
Security interest secures obligation to pay for financial asset.
The security interest described in subsection (a) of this Code section secures the person's obligation to pay for the financial asset.
(c)
Security interest in payment against delivery transaction.
A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:
(1)
The security or other financial asset:
(A)
In the ordinary course of business is transferred by delivery with any necessary indorsement or assignment; and
(B)
Is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and
(2)
The agreement calls for delivery against payment.
(d)
Security interest secures obligation to pay for delivery.
The security interest described in subsection (c) of this Code section secures the obligation to make payment for the delivery.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 2 - RIGHTS AND DUTIES (§§ 11-9-207 — 11-9-210) › Section 11-9-207 - Rights and duties of secured party having possession or control of collateral

(a)
Duty of care when secured party in possession.
Except as otherwise provided in subsection (d) of this Code section, a secured party shall use reasonable care in the custody and preservation of collateral in the secured party's possession. In the case of chattel paper or an instrument, reasonable care includes taking necessary steps to preserve rights against prior parties unless otherwise agreed.
(b)
Expenses, risks, duties, and rights when secured party in possession.
Except as otherwise provided in subsection (d) of this Code section, if a secured party has possession of collateral:
(1)
Reasonable expenses, including the cost of insurance and payment of taxes or other charges, incurred in the custody, preservation, use, or operation of the collateral are chargeable to the debtor and are secured by the collateral;
(2)
The risk of accidental loss or damage is on the debtor to the extent of a deficiency in any effective insurance coverage;
(3)
The secured party shall keep the collateral identifiable, but fungible collateral may be commingled; and
(4)
The secured party may use or operate the collateral:
(A)
For the purpose of preserving the collateral or its value;
(B)
As permitted by an order of a court having competent jurisdiction; or
(C)
Except in the case of consumer goods, in the manner and to the extent agreed by the debtor.
(c)
Duties and rights when secured party in possession or control.
Except as otherwise provided in subsection (d) of this Code section, a secured party having possession of collateral or control of collateral under Code Section
11-7-106
,
11-9-104
,
11-9-105
, 11-9-105A, 11-9-106, 11-9-107, or 11-9-107A:
(1)
May hold as additional security any proceeds, except money or funds, received from the collateral;
(2)
Shall apply money or funds received from the collateral to reduce the secured obligation, unless remitted to the debtor; and
(3)
May create a security interest in the collateral.
(d)
Buyer of certain rights to payment.
If the secured party is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor:
(1)
Subsection (a) of this Code section does not apply unless the secured party is entitled under an agreement:
(A)
To charge back uncollected collateral; or
(B)
Otherwise to full or limited recourse against the debtor or a secondary obligor based on the nonpayment or other default of an account debtor or other obligor on the collateral; and
(2)
Subsections (b) and (c) of this Code section do not apply.
Amended by 2024 Ga. Laws 600,§ 5-48, eff. 7/1/2024.
Amended by 2010 Ga. Laws 470,§ 2-21, eff. 5/27/2010.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 2 - EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT (§§ 11-9-201 — 11-9-210) › Subpart 2 - RIGHTS AND DUTIES (§§ 11-9-207 — 11-9-210) › Section 11-9-209 - Duties of secured party if account debtor has been notified of assignment

(a)
Applicability of Code section.
Except as otherwise provided in subsection (c) of this Code section, this Code section applies if:
(1)
There is no outstanding secured obligation; and
(2)
The secured party is not committed to make advances, incur obligations, or otherwise give value.
(b)
Duties of secured party after receiving demand from debtor.
Within ten days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under subsection (a) of Code Section
11-9-406
or subsection (b) of Code Section 11-12-106 of an assignment to the secured party as assignee a signed record that releases the account debtor from any further obligation to the secured party.
(c)
Inapplicability to sales.
This Code section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.
Amended by 2024 Ga. Laws 600,§ 5-50, eff. 7/1/2024.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 1 - LAW GOVERNING PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-307) › Section 11-9-301 - Law governing perfection and priority of security interests

(1)
Except as otherwise provided in this Code section, while a debtor is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral;
(2)
While collateral is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a possessory security interest in that collateral;
(3)
Except as otherwise provided in paragraph (4) of this Code section, while negotiable tangible documents, goods, instruments, or tangible money is located in a jurisdiction, the local law of that jurisdiction governs:
(A)
Perfection of a security interest in the goods by filing a fixture filing;
(B)
Perfection of a security interest in timber to be cut;
(C)
Perfection of a security interest in crops; and
(D)
The effect of perfection or nonperfection and the priority of a nonpossessory security interest in the collateral; and
(4)
The local law of the jurisdiction in which the wellhead or minehead is located governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in as-extracted collateral.
Amended by 2024 Ga. Laws 600,§ 5-51, eff. 7/1/2024.
Amended by 2010 Ga. Laws 470,§ 2-23, eff. 5/27/2010.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 1 - LAW GOVERNING PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-307) › Section 11-9-302 - Law governing perfection and priority of agricultural liens

While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 1 - LAW GOVERNING PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-307) › Section 11-9-303 - Law governing perfection and priority of security interests in goods covered by a certificate of title

(a)
Applicability of Code section.
This Code section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor.
(b)
When goods covered by certificate of title.
Goods become covered by a certificate of title when a valid application for the certificate of title and the applicable fee are delivered to the appropriate authority. Goods cease to be covered by a certificate of title at the earlier of the time the certificate of title ceases to be effective under the law of the issuing jurisdiction or the time the goods become covered subsequently by a certificate of title issued by another jurisdiction.
(c)
Applicable law.
The local law of the jurisdiction under whose certificate of title the goods are covered governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in goods covered by a certificate of title from the time the goods become covered by the certificate of title until the goods cease to be covered by the certificate of title.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 1 - LAW GOVERNING PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-307) › Section 11-9-304 - Law governing perfection and priority of security interests in deposit accounts

(a)
Law of bank's jurisdiction governs.
The local law of a bank's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation to the bank's jurisdiction.
(b)
Bank's jurisdiction.
The following rules determine a bank's jurisdiction for purposes of this part:
(1)
If an agreement between the bank and its customer governing the deposit account expressly provides that a particular jurisdiction is the bank's jurisdiction for purposes of this part, this article, or this title, that jurisdiction is the bank's jurisdiction;
(2)
If paragraph (1) of this subsection does not apply and an agreement between the bank and its customer governing the deposit account expressly provides that the agreement is governed by the law of a particular jurisdiction, that jurisdiction is the bank's jurisdiction;
(3)
If neither paragraph (1) nor (2) of this subsection applies and an agreement between the bank and its customer governing the deposit account expressly provides that the deposit account is maintained at an office in a particular jurisdiction, that jurisdiction is the bank's jurisdiction;
(4)
If none of the preceding paragraphs of this subsection applies, the bank's jurisdiction is the jurisdiction in which the office identified in an account statement as the office serving the customer's account is located; and
(5)
If none of the preceding paragraphs of this subsection applies, the bank's jurisdiction is the jurisdiction in which the chief executive office of the bank is located.
Amended by 2024 Ga. Laws 600,§ 5-52, eff. 7/1/2024.
Amended by 2002 Ga. Laws 874,§ 4, eff. 7/1/2002.
Added by 2001 Ga. Laws 191, §1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 1 - LAW GOVERNING PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-307) › Section 11-9-306 - Law governing perfection and priority of security interests in letter of credit rights

(a)
Governing law; issuer's or nominated person's jurisdiction.
Subject to subsection (c) of this Code section, the local law of the issuer's jurisdiction or a nominated person's jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a letter of credit right if the issuer's jurisdiction or nominated person's jurisdiction is a state.
(b)
Issuer's or nominated person's jurisdiction.
For purposes of this part, an issuer's jurisdiction or nominated person's jurisdiction is the jurisdiction whose law governs the liability of the issuer or nominated person with respect to the letter of credit right as provided in Code Section
11-5-116
.
(c)
When Code section not applicable.
This Code section does not apply to a security interest that is perfected only under subsection (d) of Code Section
11-9-308
.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 1 - LAW GOVERNING PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-307) › Section 11-9-306B - Law governing perfection and priority of security interests in controllable accounts, controllable electronic records, and controllable payment intangibles

(a)
Governing law: general rules. Except as provided in subsection (b) of this Code section, the local law of the controllable electronic record's jurisdiction specified in subsections (c) and (d) of Code Section 11-12-107 governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a controllable electronic record and a security interest in a controllable account or controllable payment intangible evidenced by the controllable electronic record.
(b)
When perfection governed by law of jurisdiction where debtor located. The local law of the jurisdiction in which the debtor is located governs:
(1)
Perfection of a security interest in a controllable account, controllable electronic record, or controllable payment intangible by filing; and
(2)
Automatic perfection of a security interest in a controllable payment intangible created by a sale of the controllable payment intangible.
Added by 2024 Ga. Laws 600,§ 5-55, eff. 7/1/2024.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-308 - When security interest or agricultural lien is perfected; continuity of perfection

(a)
Perfection of security interest.
Except as otherwise provided in this Code section and Code Section
11-9-309
, a security interest is perfected if it has attached and all of the applicable requirements for perfection in Code Sections
11-9-310
through
11-9-316
have been satisfied. A security interest is perfected when it attaches if the applicable requirements are satisfied before the security interest attaches.
(b)
Perfection of agricultural lien.
An agricultural lien is perfected if it has become effective and all of the applicable requirements for perfection in Code Section
11-9-310
have been satisfied. An agricultural lien is perfected when it becomes effective if the applicable requirements are satisfied before the agricultural lien becomes effective.
(c)
Continuous perfection; perfection by different methods.
A security interest or agricultural lien is perfected continuously if it is originally perfected by one method under this article and is later perfected by another method under this article, without an intermediate period when it was unperfected.
(d)
Supporting obligation.
Perfection of a security interest in collateral also perfects a security interest in a supporting obligation for the collateral.
(e)
Lien securing right to payment.
Perfection of a security interest in a right to payment or performance also perfects a security interest in a security interest, mortgage, or other lien on personal or real property securing the right.
(f)
Security entitlement carried in securities account.
Perfection of a security interest in a securities account also perfects a security interest in the security entitlements carried in the securities account.
(g)
Commodity contract carried in commodity account.
Perfection of a security interest in a commodity account also perfects a security interest in the commodity contracts carried in the commodity account.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-309 - Security interest perfected upon attachment

The following security interests are perfected when they attach:
(1)
A purchase money security interest in consumer goods, except as otherwise provided in subsection (b) of Code Section
11-9-311
with respect to consumer goods that are subject to a statute or treaty described in subsection (a) of Code Section
11-9-311
;
(2)
An assignment of accounts or payment intangibles which does not by itself or in conjunction with other assignments to the same assignee transfer a significant part of the assignor's outstanding accounts or payment intangibles;
(3)
A sale of a payment intangible;
(4)
A sale of a promissory note;
(5)
A security interest created by the assignment of a health care insurance receivable to the provider of the health care goods or services;
(6)
A security interest arising under Code Section
11-2-401
or
11-2-505
, subsection (3) of Code Section
11-2-711
, or subsection (5) of Code Section
11-2A-508
, until the debtor obtains possession of the collateral;
(7)
A security interest of a collecting bank arising under Code Section
11-4-210
;
(8)
A security interest of an issuer or nominated person arising under Code Section
11-5-118
;
(9)
A security interest arising in the delivery of a financial asset under subsection (c) of Code Section
11-9-206
;
(10)
A security interest in investment property created by a broker or securities intermediary;
(11)
A security interest in a commodity contract or a commodity account created by a commodity intermediary;
(12)
An assignment for the benefit of all creditors of the transferor and subsequent transfers by the assignee thereunder; and
(13)
A security interest created by an assignment of a beneficial interest in a decedent's estate.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-310 - When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply

(a)
General rule; perfection by filing.
Except as otherwise provided in subsection (b) of this Code section and subsection (b) of Code Section
11-9-312
, a financing statement must be filed to perfect all security interests and agricultural liens.
(b)
Exceptions; filing not necessary.
The filing of a financing statement is not necessary to perfect a security interest:
(1)
That is perfected under subsection (d), (e), (f), or (g) of Code Section
11-9-308
;
(2)
That is perfected under Code Section
11-9-309
when it attaches;
(3)
In property subject to a statute, regulation, or treaty described in subsection (a) of Code Section
11-9-311
;
(4)
In goods in possession of a bailee which is perfected under paragraph (1) or (2) of subsection (d) of Code Section
11-9-312
;
(5)
In certificated securities, documents, goods, or instruments which is perfected without filing, control, or possession under subsection (e), (f), or (g) of Code Section
11-9-312
;
(6)
In collateral in the secured party's possession under Code Section
11-9-313
;
(7)
In a certificated security which is perfected by delivery of the security certificate to the secured party under Code Section
11-9-313
;
(8)
In controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, investment property, or letter of credit rights which is perfected by control under Code Section
11-9-314
;
(8.1)
In chattel paper which is perfected by possession and control under Code Section
11-9-314
A;
(9)
In proceeds which is perfected under Code Section
11-9-315
; or
(10)
That is perfected under Code Section
11-9-316
.
(c)
Assignment of perfected security interest.
If a secured party assigns a perfected security interest or agricultural lien, a filing under this article is not required to continue the perfected status of the security interest against creditors of and transferees from the original debtor.
Amended by 2024 Ga. Laws 600,§ 5-56, eff. 7/1/2024.
Amended by 2010 Ga. Laws 470,§ 2-24, eff. 5/27/2010.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-311 - Perfection of security interests in property subject to certain statutes, regulations, and treaties

(a)
Security interest subject to other law.
Except as otherwise provided in subsection (d) of this Code section, the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to:
(1)
A statute, regulation, or treaty of the United States whose requirements for a security interest's obtaining priority over the rights of a lien creditor with respect to the property preempt subsection (a) of Code Section
11-9-310
;
(2)
Chapter 3 of Title 40; or
(3)
A statute of another jurisdiction which provides for a security interest to be indicated on a certificate of title as a condition or result of the security interest's obtaining priority over the rights of a lien creditor with respect to the property.
(b)
Compliance with other law.
Compliance with the requirements of a statute, regulation, or treaty described in subsection (a) of this Code section for obtaining priority over the rights of a lien creditor is equivalent to the filing of a financing statement under this article. Except as otherwise provided in subsection (d) of this Code section, in Code Section
11-9-313
, and in subsections (d) and (e) of Code Section
11-9-316
for goods covered by a certificate of title, a security interest in property subject to a statute, regulation, or treaty described in subsection (a) of this Code section may be perfected only by compliance with those requirements, and a security interest so perfected remains perfected notwithstanding a change in the use or transfer of possession of the collateral.
(c)
Duration and renewal of perfection.
Except as otherwise provided in subsection (d) of this Code section and subsections (d) and (e) of Code Section
11-9-316
, duration and renewal of perfection of a security interest perfected by compliance with the requirements prescribed by a statute, regulation, or treaty described in subsection (a) of this Code section are governed by the statute, regulation, or treaty. In other respects, the security interest is subject to this article.
(d)
Inapplicability to certain inventory.
During any period in which collateral subject to a statute specified in paragraph (2) of subsection (a) of this Code section is inventory held for sale or lease by a person or leased by that person as lessor and that person is in the business of selling goods of that kind, this Code section does not apply to a security interest in that collateral created by that person.
Amended by 2013 Ga. Laws 223,§ 4, eff. 7/1/2013.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-314 - Perfection by control

(a)
Perfection by control.
A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter of credit rights may be perfected by control of the collateral under Code Section
11-7-106
,
11-9-104
, 11-9-105A, 11-9-106, 11-9-107, or 11-9-107A.
(b)
Specified collateral; time of perfection by control; continuation of perfection.
A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, or letter of credit rights is perfected by control under Code Section
11-7-106
,
11-9-104
, 11-9-105A, 11-9-107, or 11-9-107A not earlier than the time the secured party obtains control and remains perfected by control only while the secured party retains control.
(c)
Investment property; time of perfection by control; continuation of perfection.
A security interest in investment property is perfected by control under Code Section
11-9-106
not earlier than the time the secured party obtains control and remains perfected by control until:
(1)
The secured party does not have control; and
(2)
One of the following occurs:
(A)
If the collateral is a certificated security, the debtor has or acquires possession of the security certificate;
(B)
If the collateral is an uncertificated security, the issuer has registered or registers the debtor as the registered owner; or
(C)
If the collateral is a security entitlement, the debtor is or becomes the entitlement holder.
Amended by 2024 Ga. Laws 600,§ 5-59, eff. 7/1/2024.
Amended by 2010 Ga. Laws 470,§ 2-27, eff. 5/27/2010.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-314A - Perfection by possession and control of chattel paper

(a)
Perfection by possession and control. A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the chattel paper and obtaining control of each authoritative electronic copy of the electronic record evidencing the chattel paper.
(b)
Time of perfection; continuation of perfection. A security interest is perfected under subsection (a) of this Code section not earlier than the time the secured party takes possession and obtains control and remains perfected under subsection (a) of this Code section only while the secured party retains possession and control.
(c)
Application of Code Section
11-9-313
to perfection by possession of chattel paper. Subsections (c) and (f) through (i) of Code Section
11-9-313
apply to perfection by possession of an authoritative tangible copy of a record evidencing chattel paper.
Added by 2024 Ga. Laws 600,§ 5-60, eff. 7/1/2024.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 2 - PERFECTION (§§ 11-9-308 — 11-9-316) › Section 11-9-315 - Secured party's rights on disposition of collateral and in proceeds

(a)
Disposition of collateral; continuation of security interest or agricultural lien; proceeds.
Except as otherwise provided in this article and in subsection (2) of Code Section
11-2-403
:
(1)
A security interest or agricultural lien continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof unless the secured party authorized the disposition free of the security interest or agricultural lien; and
(2)
A security interest attaches to any identifiable proceeds of collateral.
(b)
When commingled proceeds identifiable.
Proceeds that are commingled with other property are identifiable proceeds:
(1)
If the proceeds are goods, to the extent provided by Code Section
11-9-336
; and
(2)
If the proceeds are not goods, to the extent that the secured party identifies the proceeds by a method of tracing, including application of equitable principles, that is permitted under law other than this article with respect to commingled property of the type involved.
(c)
Perfection of security interest in proceeds.
A security interest in proceeds is a perfected security interest if the security interest in the original collateral was perfected.
(d)
Continuation of perfection.
A perfected security interest in proceeds becomes unperfected on the twenty-first day after the security interest attaches to the proceeds unless:
(1)
The following conditions are satisfied:
(A)
A filed financing statement covers the original collateral;
(B)
The proceeds are collateral in which a security interest may be perfected by filing in the office in which the financing statement has been filed; and
(C)
The proceeds are not acquired with cash proceeds;
(2)
The proceeds are identifiable cash proceeds; or
(3)
The security interest in the proceeds is perfected other than under subsection (c) of this Code section when the security interest attaches to the proceeds or within 20 days thereafter.
(e)
When perfected security interest in proceeds becomes unperfected.
If a filed financing statement covers the original collateral, a security interest in proceeds which remains perfected under paragraph (1) of subsection (d) of this Code section becomes unperfected at the later of:
(1)
When the effectiveness of the filed financing statement lapses under Code Section
11-9-515
or is terminated under Code Section
11-9-513
; or
(2)
The twenty-first day after the security interest attaches to the proceeds.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 3 - PRIORITY (§§ 11-9-317 — 11-9-339) › Section 11-9-318 - No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers

(a)
Seller retains no interest.
A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold.
(b)
Deemed rights of debtor if buyer's security interest unperfected.
For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 3 - PRIORITY (§§ 11-9-317 — 11-9-339) › Section 11-9-319 - Rights and title of consignee with respect to creditors and purchasers

(a)
Consignee has consignor's rights.
Except as otherwise provided in subsection (b) of this Code section, for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods identical to those the consignor had or had power to transfer.
(b)
Applicability of other law.
For purposes of determining the rights of a creditor of a consignee, law other than this article determines the rights and title of a consignee while goods are in the consignee's possession if, under this part, a perfected security interest held by the consignor would have priority over the rights of the creditor.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 3 - PRIORITY (§§ 11-9-317 — 11-9-339) › Section 11-9-320 - Buyer of goods

(a)
Buyer in ordinary course of business.
Except as otherwise provided in subsection (e) of this Code section, a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.
(b)
Buyer of consumer goods.
Except as otherwise provided in subsection (e) of this Code section, a buyer of goods from a person who used or bought the goods for use primarily for personal, family, or household purposes takes free of a security interest, even if perfected, if the buyer buys:
(1)
Without knowledge of the security interest;
(2)
For value;
(3)
Primarily for the buyer's personal, family, or household purposes; and
(4)
Before the filing of a financing statement covering the goods.
(c)
Effectiveness of filing for subsection (b) of this Code section.
To the extent that it affects the priority of a security interest over a buyer of goods under subsection (b) of this Code section, the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by subsections (a) and (b) of Code Section
11-9-316
.
(d)
Buyer in ordinary course of business at wellhead or minehead.
A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.
(e)
Possessory security interest not affected.
Subsections (a) and (b) of this Code section do not affect a security interest in goods in the possession of the secured party under Code Section
11-9-313
.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 3 - PRIORITY (§§ 11-9-317 — 11-9-339) › Section 11-9-321 - Licensee of general intangible and lessee of goods in ordinary course of business

(a)
"Licensee in ordinary course of business."
As used in this Code section, the term "licensee in ordinary course of business" means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that kind. A person becomes a licensee in the ordinary course if the license to the person comports with the usual or customary practices in the kind of business in which the licensor is engaged or with the licensor's own usual or customary practices.
(b)
Rights of licensee in ordinary course of business.
A licensee in ordinary course of business takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, even if the security interest is perfected and the licensee knows of its existence.
(c)
Rights of lessee in ordinary course of business.
A lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee knows of its existence.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 3 - PRIORITY (§§ 11-9-317 — 11-9-339) › Section 11-9-322.1 - Crops produced with new value

A perfected security interest in growing crops for new value given to enable the debtor to produce the crops during the production season and given not more than three months before the crops become growing crops by planting or otherwise takes priority over an earlier perfected security interest or agricultural lien to the extent that such earlier interest or lien secures obligations incurred more than six months before the crops become growing crops by planting or otherwise, even though the person giving new value had knowledge of the earlier security interest or agricultural lien.
Amended by 2002 Ga. Laws 874,§ 5, eff. 7/1/2002.
Added by 2001 Ga. Laws 191, §1, eff. 7/1/2001.
2023 CODE OF GEORGIA › Title 11 - COMMERCIAL CODE (§§ 11-1-101 — 11-13-102) › Article 9 - SECURED TRANSACTIONS (§§ 11-9-101 — 11-9-809) › Part 3 - PERFECTION AND PRIORITY (§§ 11-9-301 — 11-9-342) › Subpart 3 - PRIORITY (§§ 11-9-317 — 11-9-339) › Section 11-9-323 - Future advances

(a)
When priority based on time of advance.
Except as otherwise provided in subsection (b) of this Code section, for purposes of determining the priority of a perfected security interest under paragraph (1) of subsection (a) of Code Section
11-9-322
, perfection of the security interest dates from the time an advance is made to the extent that the security interest secures an advance that:
(1)
Is made while the security interest is perfected only:
(A)
Under Code Section
11-9-309
when it attaches; or
(B)
Temporarily under subsection (e), (f), or (g) of Code Section
11-9-312
; and
(2)
Is not made pursuant to a commitment entered into before or while the security interest is perfected by a method other than under Code Section
11-9-309
or subsection (e), (f), or (g) of Code Section
11-9-312
.
(b)
Buyer of receivables.
Subsection (a) of this Code section does not apply to a security interest held by a secured party that is a buyer of accounts, chattel paper, payment intangibles, or promissory notes or a consignor.
(c)
Buyer of goods.
Except as otherwise provided in subsection (d) of this Code section, a buyer of goods takes free of a security interest to the extent that it secures advances made after the earlier of:
(1)
The time the secured party acquires knowledge of the buyer's purchase; or
(2)
Forty-five days after the purchase.
(d)
Advances made pursuant to commitment; priority of buyer of goods.
Subsection (c) of this Code section does not apply if the advance is made pursuant to a commitment entered into without knowledge of the buyer's purchase and before the expiration of the 45 day period.
(e)
Lessee of goods.
Except as otherwise provided in subsection (f) of this Code section, a lessee of goods takes the leasehold interest free of a security interest to the extent that it secures advances made after the earlier of:
(1)
The time the secured party acquires knowledge of the lease; or
(2)
Forty-five days after the lease contract becomes enforceable.
(f)
Advances made pursuant to commitment; priority of lessee of goods.
Subsection (e) of this Code section does not apply if the advance is made pursuant to a commitment entered into without knowledge of the lease and before the expiration of the 45 day period.
Amended by 2024 Ga. Laws 600,§ 5-63, eff. 7/1/2024.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.