2020 Georgia Code
Title 10 - Commerce and Trade
Chapter 1 - Selling and Other Trade Practices
Article 1 - Retail Installment and Home Solicitation Sales
§ 10-1-10. Disposition of Goods Repossessed After Default; Right to Recover Deficiency
When any goods have been repossessed after default in accordance with Part 6 of Article 9 of Title 11, the seller or holder shall not be entitled to recover a deficiency against the buyer unless within ten days after said repossession he forwards by registered or certified mail or statutory overnight delivery to the address of the buyer shown on the contract or later designated by the buyer a notice of the seller's or holder's intention to pursue a deficiency claim against the buyer. The notice shall also advise the buyer of his rights of redemption, as well as his right to demand a public sale of the repossessed goods. In the event the buyer exercises his right to demand a public sale of the goods, he shall in writing so advise the seller or holder of his election by registered or certified mail or statutory overnight delivery addressed to the seller or holder at the address from which the seller's or holder's notice emanated, within ten days after the posting of the original seller's or holder's notice.
In the event of election of such public sale by the buyer, the seller or holder shall dispose of the repossessed goods at a public sale as provided by law, to be held in the state and county where the original sale took place or the state and county of the buyer's residence, at the seller's election.
This Code section is cumulative of Part 6 of Article 9 of Title 11 and provides cumulative additional rights and remedies which must be fulfilled before any deficiency claim will lie against a buyer, and nothing in this Code section shall be deemed to repeal said part.
(Ga. L. 1967, p. 659, § 9; Ga. L. 2000, p. 1589, § 3.)
Cross references.- Uniform Commercial Code provisions regarding secured party's right to dispose of collateral after default, § 11-9-402.
Code Commission notes.- Pursuant to Code Section 28-9-5, in 2009, "Part 6" was substituted for "Part 5" twice in this Code section.
Editor's notes.- Ga. L. 2000, p. 1589, § 16, not codified by the General Assembly, provides that the 2000 amendment is applicable with respect to notices delivered on or after July 1, 2000.
Law reviews.- For annual survey on commercial law, see 36 Mercer L. Rev. 115 (1984). For article, "Nonjudicial Foreclosures in Georgia Revisited," see 24 Ga. St. B. J. 43 (1987).
JUDICIAL DECISIONS
Debtor to be notified debtor can redeem collateral at any time before sale.
- When the debtor is told by notification letter that the debtor has ten days to redeem the debtor's repossessed collateral, but the collateral is sold after the tenth day, the debtor has not, as a matter of law, been notified that the debtor can redeem the debtor's collateral at any time before the sale, as required by O.C.G.A. §§ 10-1-10 and11-9-506, and a verdict should be directed for the debtor when the creditor sues for a deficiency judgment. Credithrift of Am., Inc. v. Smith, 168 Ga. App. 45, 308 S.E.2d 53 (1983).
Summary judgment to debtors when creditor did not dispute lack of notice.
- Because a credit company did not dispute the factual accuracy of the debtors' assertion that the company's deficiency claim was barred by the company's failure to send the debtors notice, after repossession, of the company's intention to pursue a deficiency claim, as required by O.C.G.A. § 10-1-10, the debtors were entitled to summary judgment. Fin. Fed. Credit Inc. v. Smith, F. Supp. 2d (S.D. Ga. Aug. 16, 2005).
Notice insufficient.
- Notice, within ten days of the repossession of a debtor's equipment, was not provided of an intent to pursue a deficiency claim as required under O.C.G.A. § 10-1-10 as the notices on August 27 and 28 were more than ten days after the July 30 repossession and more than 60 days after the debtor signed the release on June 11; no indication was given that the notices were sent by registered or certified mail or statutory overnight delivery, and the notices also did not inform the debtor of the debtor's rights of redemption as well as the debtor's right to demand a public sale of the repossessed goods. Parham v. Peterson, Goldman & Villani, 296 Ga. App. 527, 675 S.E.2d 275 (2009).
Cited in Meadows v. Charlie Wood, Inc., 448 F. Supp. 717 (M.D. Ga. 1978).
RESEARCH REFERENCES
Am. Jur. 2d.
- 67A Am. Jur. 2d, Sales, § 370 et seq.
