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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 1 - FILING OFFICE; CONTENTS AND EFFECTIVENESS OF FINANCING STATEMENT (§§ 11-9-501 — 11-9-518) › Section 11-9-512 - Amendment of financing statement

(a)
Amendment of information in financing statement.
Subject to Code Section
11-9-509
, a person may add or delete collateral covered by, continue or terminate the effectiveness of, or, subject to subsection (e) of this Code section, otherwise amend the information provided in a financing statement by filing an amendment that:
(1)
Identifies, by its file number, the initial financing statement to which the amendment relates; and
(2)
If the amendment relates to an initial financing statement filed or recorded in a filing office described in paragraph (1) of subsection (a) of Code Section
11-9-501
, provides the information specified in subsection (b) of Code Section
11-9-502
.
(b)
Period of effectiveness not affected.
Except as otherwise provided in Code Section
11-9-515
, the filing of an amendment does not extend the period of effectiveness of the financing statement.
(c)
Effectiveness of amendment adding collateral.
A financing statement that is amended by an amendment that adds collateral is effective as to the added collateral only from the date of the filing of the amendment.
(d)
Effectiveness of amendment adding debtor.
A financing statement that is amended by an amendment that adds a debtor is effective as to the added debtor only from the date of the filing of the amendment.
(e)
Certain amendments ineffective.
An amendment is ineffective to the extent it:
(1)
Purports to delete all debtors and fails to provide the name of a debtor to be covered by the financing statement; or
(2)
Purports to delete all secured parties of record and fails to provide the name of a new secured party of record.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 1 - FILING OFFICE; CONTENTS AND EFFECTIVENESS OF FINANCING STATEMENT (§§ 11-9-501 — 11-9-518) › Section 11-9-513 - Termination statement

(a)
Consumer goods.
A secured party shall cause the secured party of record for a financing statement to file a termination statement for the financing statement if the financing statement covers consumer goods and:
(1)
There is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2)
The debtor did not authorize the filing of the initial financing statement.
(b)
Time for compliance with subsection (a) of this Code section.
To comply with subsection (a) of this Code section, a secured party shall cause the secured party of record to file the termination statement:
(1)
Within one month after there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value; or
(2)
If earlier, within 20 days after the secured party receives a signed demand from a debtor.
(c)
Other collateral.
In cases not governed by subsection (a) of this Code section, within 90 days after there is no obligation secured by the collateral covered by or described in the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value or, if earlier, within 20 days after a secured party receives a signed demand from a debtor, the secured party shall cause the secured party of record for a financing statement to send to the debtor a termination statement for the financing statement or file the termination statement in the filing office if:
(1)
Except in the case of a financing statement covering accounts or chattel paper that has been sold or goods that are the subject of a consignment, there is no obligation secured by the collateral covered by the financing statement and no commitment to make an advance, incur an obligation, or otherwise give value;
(2)
The financing statement covers accounts or chattel paper that has been sold but as to which the account debtor or other person obligated has discharged its obligation;
(3)
The financing statement covers goods that were the subject of a consignment to the debtor but are not in the debtor's possession; or
(4)
The debtor did not authorize the filing of the initial financing statement.
(d)
Effect of filing termination statement.
Except as otherwise provided in Code Section
11-9-510
, upon the filing of a termination statement with the filing office, the financing statement to which the termination statement relates ceases to be effective.
Amended by 2024 Ga. Laws 600,§ 6-1, 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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 1 - FILING OFFICE; CONTENTS AND EFFECTIVENESS OF FINANCING STATEMENT (§§ 11-9-501 — 11-9-518) › Section 11-9-514 - Assignment of powers of secured party of record

(a)
Assignment reflected on initial financing statement.
An initial financing statement may reflect an assignment of all of the secured party's power to authorize an amendment to the financing statement by providing the name and mailing address of the assignee as the name and address of the secured party.
(b)
Assignment of filed financing statement.
A secured party of record may assign of record all or part of its power to authorize an amendment to a financing statement by filing in the filing office an amendment of the financing statement which:
(1)
Identifies, by its file number, the initial financing statement to which it relates;
(2)
Provides the name of the assignor; and
(3)
Provides the name and mailing address of the assignee.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 1 - FILING OFFICE; CONTENTS AND EFFECTIVENESS OF FINANCING STATEMENT (§§ 11-9-501 — 11-9-518) › Section 11-9-517 - Effect of indexing errors

The failure of the filing office or authority to index a record correctly does not affect the effectiveness of the filed record.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 1 - FILING OFFICE; CONTENTS AND EFFECTIVENESS OF FINANCING STATEMENT (§§ 11-9-501 — 11-9-518) › Section 11-9-518 - Inaccurate or wrongfully filed record

(a)
Statement with respect to record indexed under person's name.
A person may file in the filing office an information statement with respect to a record indexed under the person's name if the person believes that the record is inaccurate or was wrongfully filed. The information statement shall be filed in the filing office of the county where the record was filed.
(b)
Contents of statement under subsection (a) of this Code section.
An information statement under subsection (a) of this Code section must:
(1)
Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
(2)
Indicate that it is an information statement; and
(3)
Provide the basis for the person's belief that the record is inaccurate and indicate the manner in which the person believes the record should be amended to cure any inaccuracy or provide the basis for the person's belief that the record was wrongfully filed.
(c)
Statement by secured party of record.
A person may file in the filing office an information statement with respect to a record filed there if such person is a secured party of record with respect to the financing statement to which the record relates and believes that the person that filed the record was not entitled to do so under subsection (d) of Code Section
11-9-509
.
(d)
Contents of statement under subsection (c) of this Code section.
An information statement under subsection (c) of this Code section must:
(1)
Identify the record to which it relates by the file number assigned to the initial financing statement to which the record relates;
(2)
Indicate that it is an information statement; and
(3)
Provide the basis for the person's belief that the person that filed the record was not entitled to do so under subsection (d) of Code Section
11-9-509
.
(e)
Record not affected by information statement.
The filing of an information statement does not affect the effectiveness of an initial financing statement or other filed record.
Amended by 2013 Ga. Laws 223,§ 15, 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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 2 - DUTIES AND OPERATION OF FILING OFFICE AND CENTRAL INDEXING SYSTEM (§§ 11-9-519 — 11-9-526) › Section 11-9-520 - Acceptance and refusal to accept record

(a)
Refusal to accept record.
A filing office may refuse to accept a record for filing only for a reason set forth in subsection (b) of Code Section
11-9-516
.
(b)
Communication concerning refusal.
If a filing office refuses to accept a record for filing, it shall communicate to the person that presented the record the fact of and reason for the refusal and the date and time the record would have been filed had the filing office accepted it. The communication must be made at the time and in the manner prescribed by filing office rule but in no event more than two business days after the filing office receives the record.
(c)
When filed financing statement effective.
A filed financing statement satisfying subsections (a) and (b) of Code Section
11-9-502
is effective, even if the filing office refuses to accept it for filing under subsection (a) of this Code section. However, Code Section
11-9-338
applies to a filed financing statement providing information described in paragraph (5) of subsection (b) of Code Section
11-9-516
which is incorrect at the time the financing statement is filed.
(d)
Separate application to multiple debtors.
If a record communicated to a filing office provides information that relates to more than one debtor, this part applies as to each debtor separately.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 2 - DUTIES AND OPERATION OF FILING OFFICE AND CENTRAL INDEXING SYSTEM (§§ 11-9-519 — 11-9-526) › Section 11-9-521 - Uniform form of written financing statement and amendment; authority may prescribe forms

(a)
Initial financing statement form.
Except for a reason set forth in subsection (b) of Code Section
11-9-516
, a filing office that accepts written records may not refuse to accept a written initial financing statement in the form and format set forth in the final official text of the 2010 amendments to Article 9 of the Uniform Commercial Code promulgated by the American Law Institute and the National Conference of Commissioners on Uniform State Laws, and such form and format are incorporated into this subsection by reference.
(b)
Amendment form.
Except for a reason set forth in subsection (b) of Code Section
11-9-516
, a filing office that accepts written records may not refuse to accept a written record amending an initial financing statement if such record is in the form and format set forth in the final official text of the 2010 amendments to Article 9 of the Uniform Commercial Code promulgated by the American Law Institute and the National Conference of Commissioners on Uniform State Laws, and such form and format are incorporated into this subsection by reference.
(c)
Authority's forms.
The authority may prescribe forms for initial financing statements and amendments. Subject to the provisions of subsections (a) and (b) of this Code section, all written financing statements and amendments must be presented for filing on forms prescribed by the authority.
Amended by 2013 Ga. Laws 223,§ 16, eff. 7/1/2013.
Amended by 2002 Ga. Laws 462,§ 11, eff. 4/18/2002.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 2 - DUTIES AND OPERATION OF FILING OFFICE AND CENTRAL INDEXING SYSTEM (§§ 11-9-519 — 11-9-526) › Section 11-9-522 - Maintenance and destruction of records

(a)
Postlapse maintenance and retrieval of information.
The authority shall maintain a record of the information provided in a filed record for at least one year after the effectiveness of such record or the initial financing statement to which such record relates has lapsed under Code Section
11-9-515
with respect to all secured parties of record. The record must be retrievable by using the name of the debtor and by using the file number assigned to the initial financing statement to which the record relates.
(b)
Destruction of written records.
Except to the extent that an applicable statute governing disposition of public records provides otherwise, the filing office or the authority immediately may destroy any written record evidencing a financing statement. However, if the filing office or the authority destroys a written record, it shall maintain another record of the financing statement which complies with subsection (a) of this Code section.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 2 - DUTIES AND OPERATION OF FILING OFFICE AND CENTRAL INDEXING SYSTEM (§§ 11-9-519 — 11-9-526) › Section 11-9-524 - Delay by filing office or authority

Delay by the filing office or authority beyond a time limit prescribed by this part is excused if:
(1)
The delay is caused by interruption of communication or computer facilities, war, emergency conditions, failure of equipment, or other circumstances beyond control of the filing office or authority; and
(2)
The filing office or authority exercises reasonable diligence under the circumstances.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 2 - DUTIES AND OPERATION OF FILING OFFICE AND CENTRAL INDEXING SYSTEM (§§ 11-9-519 — 11-9-526) › Section 11-9-525 - Fees

(a)
Initial financing statement; general.
Except as otherwise provided in subsection (b) of this Code section, the fees for filing a record under this part are the amounts specified in Article 2 of Chapter 6 of Title 15.
(b)
Fees of the Georgia Superior Court Clerks' Cooperative Authority.
The Georgia Superior Court Clerks' Cooperative Authority is authorized to set and collect fees for incidental services and information provided by the authority or its designated agent with respect to the central indexing system if such fees are not otherwise prescribed by law.
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 5 - FILING (§§ 11-9-501 — 11-9-526) › Subpart 2 - DUTIES AND OPERATION OF FILING OFFICE AND CENTRAL INDEXING SYSTEM (§§ 11-9-519 — 11-9-526) › Section 11-9-526 - Rules

(a)
Adoption of filing office rules.
The authority shall adopt and publish in print or electronically rules to implement this article, including rules to administer, maintain, and modify the central indexing system. The filing office rules must be consistent with this article.
(b)
Harmonization of rules.
To keep the filing office rules, practices of the filing offices, and practices of the authority in harmony with the rules and practices in other jurisdictions that enact substantially this part, and to keep the technology used by the filing offices and the authority compatible with the technology used in other jurisdictions that enact substantially this part, the authority, so far as is consistent with the purposes, policies, and provisions of this article, in adopting, amending, and repealing filing office rules, shall:
(1)
Consult with filing offices in other jurisdictions that enact substantially this part; and
(2)
Consult the most recent version of the Model Rules promulgated by the International Association of Corporate Administrators or any successor organization; and
(3)
Take into consideration the rules and practices of, and the technology used by, filing offices in other jurisdictions that enact substantially this part.
(c)
Notification system for farm products.
The authority shall not be authorized to adopt rules to implement a notification system for farm products in conformity with the requirements of Section 1324 of the federal Food Security Act of 1985, P.L. 99-198, as now in effect or as hereafter amended, and shall not be authorized to request certification of such notification system by the secretary of the United States Department of Agriculture.
Amended by 2010 Ga. Laws 615,§ 10, eff. 6/3/2010.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-601 - Rights after default; judicial enforcement; consignor or buyer of accounts, chattel paper, payment intangibles, or promissory notes

(a)
Rights of secured party after default.
After default, a secured party has the rights provided in this part and, except as otherwise provided in Code Section
11-9-602
, those provided by agreement of the parties. A secured party:
(1)
May reduce a claim to judgment, foreclose, or otherwise enforce the claim, security interest, or agricultural lien by any available judicial procedure; and
(2)
If the collateral is documents, may proceed either as to the documents or as to the goods they cover.
(b)
Rights and duties of secured party in possession or control.
A secured party in 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 has the rights and duties provided in Code Section
11-9-207
.
(c)
Rights cumulative; simultaneous exercise.
The rights under subsections (a) and (b) of this Code section are cumulative and may be exercised simultaneously.
(d)
Rights of debtor and obligor.
Except as otherwise provided in subsection (g) of this Code section and Code Section
11-9-605
, after default, a debtor and an obligor have the rights provided in this part and by agreement of the parties.
(e)
Lien of levy after judgment.
If a secured party has reduced its claim to judgment, the lien of any levy that may be made upon the collateral by virtue of an execution based upon the judgment relates back to the earliest of:
(1)
The date of perfection of the security interest or agricultural lien in the collateral;
(2)
The date of filing a financing statement covering the collateral; or
(3)
Any date specified in a statute under which the agricultural lien was created.
(f)
Execution sale.
A sale pursuant to an execution is a foreclosure of the security interest or agricultural lien by judicial procedure within the meaning of this Code section. A secured party may purchase at the sale and thereafter hold the collateral free of any other requirements of this article.
(g)
Consignor or buyer of certain rights to payment.
Except as otherwise provided in subsection (c) of Code Section
11-9-607
, this part imposes no duties upon a secured party that is a consignor or is a buyer of accounts, chattel paper, payment intangibles, or promissory notes.
Amended by 2024 Ga. Laws 600,§ 5-70, 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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-602 - Waiver and variance of rights and duties

Except as otherwise provided in Code Section
11-9-624
, to the extent that they give rights to a debtor or obligor and impose duties on a secured party, the debtor or obligor may not waive or vary the rules stated in the following listed sections:
(1)
Subparagraph (b)(4)(C) of Code Section
11-9-207
, which deals with use and operation of the collateral by the secured party;
(2)
Code Section
11-9-210
, which deals with requests for an accounting and requests concerning a list of collateral and statement of account;
(3)
Subsection (c) of Code Section
11-9-607
, which deals with collection and enforcement of collateral;
(4)
Subsection (a) of Code Section
11-9-608
and subsection (c) of Code Section
11-9-615
to the extent that they deal with application or payment of noncash proceeds of collection, enforcement, or disposition;
(5)
Subsection (a) of Code Section
11-9-608
and subsection (d) of Code Section
11-9-615
to the extent that they require accounting for or payment of surplus proceeds of collateral;
(6)
Code Section
11-9-609
to the extent that it imposes upon a secured party that takes possession of collateral without judicial process the duty to do so without breach of the peace;
(7)
Subsection (b) of Code Section
11-9-610
and Code Sections
11-9-611
,
11-9-613
, and
11-9-614
, which deal with disposition of collateral;
(8)
Subsection (f) of Code Section
11-9-615
, which deals with calculation of a deficiency or surplus when a disposition is made to the secured party, a person related to the secured party, or a secondary obligor;
(9)
Code Section
11-9-616
, which deals with explanation of the calculation of a surplus or deficiency;
(10)
Code Sections
11-9-620
,
11-9-621
, and
11-9-622
, which deal with acceptance of collateral in satisfaction of obligation;
(11)
Code Section
11-9-623
, which deals with redemption of collateral;
(12)
Code Section
11-9-624
, which deals with permissible waivers; and
(13)
Code Sections
11-9-625
and
11-9-626
, which deal with the secured party's liability for failure to comply with this article.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-603 - Agreement on standards concerning rights and duties

(a)
Agreed standards.
The parties may determine by agreement the standards measuring the fulfillment of the rights of a debtor or obligor and the duties of a secured party under a rule stated in Code Section
11-9-602
if the standards are not manifestly unreasonable.
(b)
Agreed standards inapplicable to breach of peace.
Subsection (a) of this Code section does not apply to the duty under Code Section
11-9-609
to refrain from breaching the peace.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-604 - Procedure if security agreement covers real property or fixtures

(a)
Enforcement; personal and real property.
If a security agreement covers both personal and real property, a secured party may proceed:
(1)
Under this part as to the personal property without prejudicing any rights with respect to the real property; or
(2)
As to both the personal property and the real property in accordance with the rights with respect to the real property, in which case the other provisions of this part do not apply.
(b)
Enforcement; fixtures.
Subject to subsection (c) of this Code section, if a security agreement covers goods that are or become fixtures, a secured party may proceed:
(1)
Under this part; or
(2)
In accordance with the rights with respect to real property, in which case the other provisions of this part do not apply.
(c)
Removal of fixtures.
Subject to the other provisions of this part, if a secured party holding a security interest in fixtures has priority over all owners and encumbrancers of the real property, the secured party, after default, may remove the collateral from the real property.
(d)
Injury caused by removal.
A secured party that removes collateral shall promptly reimburse any encumbrancer or owner of the real property, other than the debtor, for the cost of repair of any physical injury caused by the removal. The secured party need not reimburse the encumbrancer or owner for any diminution in value of the real property caused by the absence of the goods removed or by any necessity of replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-605 - Unknown debtor or secondary obligor

(a)
In general: no duty owed by secured party. Except as provided in subsection (b) of this Code section, a secured party does not owe a duty based on its status as secured party:
(1)
To a person that is a debtor or obligor, unless the secured party knows:
(A)
That the person is a debtor or obligor;
(B)
The identity of the person; and
(C)
How to communicate with the person; or
(2)
To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:
(A)
That the person is a debtor; and
(B)
The identity of the person.
(b)
Exception: secured party owes duty to debtor or obligor. A secured party owes a duty based on its status as a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later:
(1)
The person is a debtor or obligor; and
(2)
The secured party knows that the information in subparagraphs (a)(1)(A), (a)(1)(B), or (a)(1)(C) of this Code section relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.
Amended by 2024 Ga. Laws 600,§ 5-71, 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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-606 - Time of default for agricultural lien

For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-608 - Application of proceeds of collection or enforcement; liability for deficiency and right to surplus

(a)
Application of proceeds, surplus, and deficiency if obligation secured.
If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:
(1)
A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under Code Section
11-9-607
in the following order to:
(A)
The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney's fees and legal expenses incurred by the secured party;
(B)
The satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and
(C)
The satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives a signed demand for proceeds before distribution of the proceeds is completed;
(2)
If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder's demand under subparagraph (C) of paragraph (1) of this subsection;
(3)
A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under Code Section
11-9-607
unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner; and
(4)
A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.
(b)
No surplus or deficiency in sales of certain rights to payment.
If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.
Amended by 2024 Ga. Laws 600,§ 6-1, 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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-609 - Secured party's right to take possession after default

(a)
Possession; rendering equipment unusable; disposition on debtor's premises.
After default, a secured party:
(1)
May take possession of the collateral; and
(2)
Without removal, may render equipment unusable and dispose of collateral on a debtor's premises under Code Section
11-9-610
.
(b)
Judicial and nonjudicial process.
A secured party may proceed under subsection (a) of this Code section:
(1)
Pursuant to judicial process; or
(2)
Without judicial process, if it proceeds without breach of the peace.
(c)
Assembly of collateral.
If so agreed, and in any event after default, a secured party may require the debtor to assemble the collateral and make it available to the secured party at a place to be designated by the secured party which is reasonably convenient to both parties.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-610 - Disposition of collateral after default

(a)
Disposition after default.
After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing.
(b)
Commercially reasonable disposition.
Every aspect of a disposition of collateral, including the method, manner, time, place, and other terms, must be commercially reasonable. If commercially reasonable, a secured party may dispose of collateral by public or private proceedings, by one or more contracts, as a unit or in parcels, and at any time and place and on any terms.
(c)
Purchase by secured party.
A secured party may purchase collateral:
(1)
At a public disposition; or
(2)
At a private disposition only if the collateral is of a kind that is customarily sold on a recognized market or the subject of widely distributed standard price quotations.
(d)
Warranties on disposition.
A contract for sale, lease, license, or other disposition includes the warranties relating to title, possession, quiet enjoyment, and the like which by operation of law accompany a voluntary disposition of property of the kind subject to the contract.
(e)
Disclaimer of warranties.
A secured party may disclaim or modify warranties under subsection (d) of this Code section:
(1)
In a manner that would be effective to disclaim or modify the warranties in a voluntary disposition of property of the kind subject to the contract of disposition; or
(2)
By communicating to the purchaser a record evidencing the contract for disposition and including an express disclaimer or modification of the warranties.
(f)
Record sufficient to disclaim warranties.
A record is sufficient to disclaim warranties under subsection (e) of this Code section if it indicates "There is no warranty relating to title, possession, quiet enjoyment, or the like in this disposition" or uses words of similar import.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-612 - Timeliness of notification before disposition of collateral

(a)
Reasonable time is question of fact.
Except as otherwise provided in subsection (b) of this Code section, whether a notification is sent within a reasonable time is a question of fact.
(b)
Ten-day period sufficient in nonconsumer transaction.
In a transaction other than a consumer transaction, a notification of disposition sent after default and ten days or more before the earliest time of disposition set forth in the notification is sent within a reasonable time before the disposition.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-617 - Rights of transferee of collateral

(a)
Effects of disposition.
A secured party's disposition of collateral after default:
(1)
Transfers to a transferee for value all of the debtor's rights in the collateral;
(2)
Discharges the security interest under which the disposition is made; and
(3)
Discharges any subordinate security interest or other subordinate lien.
(b)
Rights of good faith transferee.
A transferee that acts in good faith takes free of the rights and interests described in subsection (a) of this Code section, even if the secured party fails to comply with this article or the requirements of any judicial proceeding.
(c)
Rights of other transferee.
If a transferee does not take free of the rights and interests described in subsection (a) of this Code section, the transferee takes the collateral subject to:
(1)
The debtor's rights in the collateral;
(2)
The security interest or agricultural lien under which the disposition is made; and
(3)
Any other security interest or other lien.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-618 - Rights and duties of certain secondary obligors

(a)
Rights and duties of secondary obligor.
A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor:
(1)
Receives an assignment of a secured obligation from the secured party;
(2)
Receives a transfer of collateral from the secured party and agrees to accept the rights and assume the duties of the secured party; or
(3)
Is subrogated to the rights of a secured party with respect to collateral.
(b)
Effect of assignment, transfer, or subrogation.
An assignment, transfer, or subrogation described in subsection (a) of this Code section:
(1)
Is not a disposition of collateral under Code Section
11-9-610
; and
(2)
Relieves the secured party of further duties under this article.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-619 - Transfer of record or legal title

(a)
"Transfer statement."
As used in this Code section, the term "transfer statement" means a record signed by a secured party stating:
(1)
That the debtor has defaulted in connection with an obligation secured by specified collateral;
(2)
That the secured party has exercised its postdefault remedies with respect to the collateral;
(3)
That, by reason of the exercise, a transferee has acquired the rights of the debtor in the collateral; and
(4)
The name and mailing address of the secured party, debtor, and transferee.
(b)
Effect of transfer statement.
A transfer statement entitles the transferee to the transfer of record of all rights of the debtor in the collateral specified in the statement in any official filing, recording, registration, or certificate of title system covering the collateral. If a transfer statement is presented with the applicable fee and request form to the official or office responsible for maintaining the system, the official or office shall:
(1)
Accept the transfer statement;
(2)
Promptly amend its records to reflect the transfer; and
(3)
If applicable, issue a new appropriate certificate of title in the name of the transferee.
(c)
Transfer not a disposition; no relief of secured party's duties.
A transfer of the record or legal title to collateral to a secured party under subsection (b) of this Code section or otherwise is not of itself a disposition of collateral under this article and does not of itself relieve the secured party of its duties under this article.
Amended by 2024 Ga. Laws 600,§ 6-1, 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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-621 - Notification of proposal to accept collateral

(a)
Persons to which proposal to be sent.
A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to:
(1)
Any person from which the secured party has received, before the debtor consented to the acceptance, a signed notification of a claim of an interest in the collateral;
(2)
Any other secured party or lienholder that, ten days before the debtor consented to the acceptance, held a security interest in or other lien on the collateral perfected by the filing of a financing statement that:
(A)
Identified the collateral;
(B)
Was indexed under the debtor's name as of that date; and
(C)
Was filed in the office or offices in which to file a financing statement against the debtor covering the collateral as of that date; and
(3)
Any other secured party that, ten days before the debtor consented to the acceptance, held a security interest in the collateral perfected by compliance with a statute, regulation, or treaty described in subsection (a) of Code Section
11-9-311
.
(b)
Proposal to be sent to secondary obligor in partial satisfaction.
A secured party that desires to accept collateral in partial satisfaction of the obligation it secures shall send its proposal to any secondary obligor in addition to the persons described in subsection (a) of this Code section.
Amended by 2024 Ga. Laws 600,§ 6-1, 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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-622 - Effect of acceptance of collateral

(a)
Effect of acceptance.
A secured party's acceptance of collateral in full or partial satisfaction of the obligation it secures:
(1)
Discharges the obligation to the extent consented to by the debtor;
(2)
Transfers to the secured party all of a debtor's rights in the collateral;
(3)
Discharges the security interest or agricultural lien that is the subject of the debtor's consent and any subordinate security interest or other subordinate lien; and
(4)
Terminates any other subordinate interest.
(b)
Discharge of subordinate interest notwithstanding noncompliance.
A subordinate interest is discharged or terminated under subsection (a) of this Code section, even if the secured party fails to comply with this article.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-623 - Right to redeem collateral

(a)
Persons that may redeem.
A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral.
(b)
Requirements for redemption.
To redeem collateral, a person shall tender:
(1)
Fulfillment of all obligations secured by the collateral; and
(2)
The reasonable expenses and attorney's fees described in paragraph (1) of subsection (a) of Code Section
11-9-615
.
(c)
When redemption may occur.
A redemption may occur at any time before a secured party:
(1)
Has collected collateral under Code Section
11-9-607
;
(2)
Has disposed of collateral or entered into a contract for its disposition under Code Section
11-9-610
; or
(3)
Has accepted collateral in full or partial satisfaction of the obligation it secures under Code Section
11-9-622
.
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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 1 - DEFAULT AND ENFORCEMENT OF SECURITY INTEREST (§§ 11-9-601 — 11-9-624) › Section 11-9-624 - Waiver

(a)
Waiver of disposition notification.
A debtor or secondary obligor may waive the right to notification of disposition of collateral under Code Section
11-9-611
only by an agreement to that effect entered into and signed after default.
(b)
Waiver of mandatory disposition.
A debtor may waive the right to require disposition of collateral under subsection (e) of Code Section
11-9-620
only by an agreement to that effect entered into and signed after default.
(c)
Waiver of redemption right.
Except in a consumer goods transaction, a debtor or secondary obligor may waive the right to redeem collateral under Code Section
11-9-623
only by an agreement to that effect entered into and signed after default.
Amended by 2024 Ga. Laws 600,§ 6-1, 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 6 - DEFAULT (§§ 11-9-601 — 11-9-628) › Subpart 2 - NONCOMPLIANCE WITH ARTICLE (§§ 11-9-625 — 11-9-628) › Section 11-9-626 - Action in which deficiency or surplus is in issue

(a)
Applicable rules if amount of deficiency or surplus in issue.
In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply:
(1)
A secured party need not prove compliance with the provisions of this part relating to collection, enforcement, disposition, or acceptance unless the debtor or a secondary obligor places the secured party's compliance in issue;
(2)
If the secured party's compliance is placed in issue, the secured party has the burden of establishing that the collection, enforcement, disposition, or acceptance was conducted in accordance with this part;
(3)
Except as otherwise provided in Code Section
11-9-628
, if a secured party fails to prove that the collection, enforcement, disposition, or acceptance was conducted in accordance with the provisions of this part relating to collection, enforcement, disposition, or acceptance, the liability of a debtor or a secondary obligor for a deficiency is limited to an amount by which the sum of the secured obligation, expenses, and attorney's fees exceeds the greater of:
(A)
The proceeds of the collection, enforcement, disposition, or acceptance; or
(B)
The amount of proceeds that would have been realized had the noncomplying secured party proceeded in accordance with the provisions of this part relating to collection, enforcement, disposition, or acceptance;
(4)
For purposes of subparagraph (B) of paragraph (3) of this subsection, the amount of proceeds that would have been realized is equal to the sum of the secured obligation, expenses, and attorney's fees unless the secured party proves that the amount is less than that sum;
(5)
If a deficiency or surplus is calculated under subsection (f) of Code Section
11-9-615
, the debtor or obligor has the burden of establishing that the amount of proceeds of the disposition is significantly below the range of prices that a complying disposition to a person other than the secured party, a person related to the secured party, or a secondary obligor would have brought.
(b)
Nonconsumer transactions; no inference.
The limitation of the rules in subsection (a) of this Code section to transactions other than consumer transactions is intended to leave to the court the determination of the proper rules in consumer transactions. The court may not infer from that limitation the nature of the proper rule in consumer transactions and may continue to apply established approaches.
Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.