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 11-9-109 - Scope

(a)
General scope of article.
Except as otherwise provided in subsections (c) and (d) of this Code section, this article applies to:
(1)
A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;
(2)
An agricultural lien;
(3)
A sale of accounts, chattel paper, payment intangibles, or promissory notes;
(4)
A consignment;
(5)
A security interest arising under Code Section
11-2-401
, Code Section
11-2-505
, subsection (3) of Code Section
11-2-711
, or subsection (5) of Code Section
11-2A-508
, as provided in Code Section
11-9-110
; and
(6)
A security interest arising under Code Section
11-4-210
or
11-5-118
.
(b)
Security interest in secured obligation.
The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.
(c)
Extent to which article does not apply.
This article does not apply to the extent that:
(1)
A statute, regulation, or treaty of the United States preempts this article;
(2)
Another statute of this state expressly governs the creation, perfection, or priority;
(3)
A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
(4)
The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Code Section
11-5-114
.
(d)
Inapplicability of article.
This article does not apply to:
(1)
A landlord's lien, other than an agricultural lien;
(2)
A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Code Section
11-9-333
applies with respect to priority of the lien;
(3)
An assignment of a claim for wages, salary, or other compensation of an employee;
(4)
A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
(5)
An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
(6)
An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
(7)
An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
(8)
A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but Code Sections
11-9-315
and
11-9-322
apply with respect to proceeds and priorities in proceeds;
(9)
An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
(10)
A right of recoupment or setoff, but:
(A)
Code Section
11-9-340
applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts; and
(B)
Code Section
11-9-404
applies with respect to defenses or claims of an account debtor;
(11)
The creation or transfer of an interest in or lien on real property, including a lease or usufruct or rents thereunder, except to the extent that provision is made for:
(A)
Liens on real property in Code Sections
11-9-203
and
11-9-308
;
(B)
Fixtures in Code Section
11-9-334
;
(C)
Fixture filings in Code Sections
11-9-501
,
11-9-502
,
11-9-512
,
11-9-516
, and
11-9-519
; and
(D)
Security agreements covering personal and real property in Code Section
11-9-604
;
(12)
An assignment of a claim arising in tort, other than a commercial tort claim, but Code Sections
11-9-315
and
11-9-322
apply with respect to proceeds and priorities in proceeds;
(13)
An assignment of a deposit account in a consumer transaction, but Code Sections
11-9-315
and
11-9-322
apply with respect to proceeds and priorities in proceeds;
(14)
An assignment of a lottery prize payable by this state or any instrumentality of this state;
(15)
An assignment of a claim or right to receive payment as described in and to the extent limited by the provisions of Code Section
34-9-84
or by Article 4 of Chapter 12 of Title 51; or
(16)
A security interest created by or affecting property of this state or any governmental unit of this state in any public finance transaction, other than a security interest created by:
(A)
An authority activated under Chapter 62 of Title 36, the "Development Authorities Law"; or
(B)
A local authority having as its principal function the stimulation of industrial growth and the reduction of unemployment.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.