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2025 Code of Georgia
Title 11 - Commercial Code (Arts. 1 — 13)
Article 9 - Secured Transactions (Pts. 1 — 8)

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Annotations

Notes

Editor’s notes.

Ga. L. 2001, p. 362, § 1, effective July 1, 2001, repealed the Code sections formerly codified as this article and enacted the current article. The former article consisted of Code Sections 11-9-101 through 11-9-116 (Part 1), 11-9-201 through 11-9-208 (Part 2), 11-9-301 through 11-9-318 (Part 3), 11-9-401 through 11-9-409 (Part 4), and 11-9-501 through 11-9-507 (Part 5), relating to secured transactions, sales of accounts and chattel paper, and was based on Code 1933, §§ 109A-9-101 through 109A-9-114; Code 1933 §§ 109A-9-201 through 109A-9-208; Code 1933 §§ 109A-9-301 through 109A-9-318; Code 1933, §§ 109A-9-401 through 109A-9-409; Code 1933, §§ 109A-9-501 through 109A-9-507; Ga. L. 1962, p. 156, § 1; Ga. L. 1963, p. 188, §§ 23 through 36; Ga. L. 1964, p. 70, §§ 1, 3 through 7; Ga. L. 1968, p. 1151, § 1; Ga. L. 1969, p. 149, § 1; Ga. L. 1970, p. 604, § 1; Ga. L. 1978, p. 1081, § 1; Ga. L. 1979, p. 626, § 1; Ga. L. 1980, p. 443, §§ 2 through 6; Ga. L. 1980, p. 1134, §§ 1 through 3; Ga. L. 1981, p. 1396, §§ 9 through 14; Ga. L. 1982, p. 3, § 11; Ga. L. 1985, p. 1107, § 1; Ga. L. 1985, p. 1517, §§ 1 through 4; Ga. L. 1986, p. 357, §§ 1 through 2; Ga. L. 1986, p. 1002, §§ 5 through 8; Ga. L. 1988, p. 13, § 11; Ga. L. 1991, p. 94, § 11; Ga. L. 1992, p. 1028, § 1; Ga. L. 1992, p. 2626, §§ 4 through 11; Ga. L. 1993, p. 576, § 1; Ga. L. 1993, p. 633, § 4; Ga. L. 1993, p. 1550, §§ 1 through 6; Ga. L. 1994, p. 1693, §§ 1 through 12; Ga. L. 1997, p. 143, § 11; Ga. L. 1997, p. 970, § 3; Ga. L. 1998, p. 128, § 11; Ga. L. 1998, p. 1323, § 2 through 14.

Table of Comparable Provisions for Title 11, Article 9

Former Code Sections to Revised Code Sections

This table lists each section in the version of Article 9 of the Uniform Commercial Code in effect prior to July 1, 2001, and provides the comparable provisions for Article 9 in effect on and after July 1, 2001. It is intended to assist the user who is familiar with the former title to find comparable new provisions.
FORMER CODEREVISED CODE
—-—-
11-9-10111-9-101
11-9-10211-9-109
11-9-10311-9-301, 11-9-303, 11-9-305
11-9-10411-9-109
11-9-10511-9-102
11-9-10611-9-102
11-9-10711-9-103
11-9-108repealed
11-9-10911-9-102
11-9-11011-9-108
11-9-11111-9-111
11-9-112repealed
11-9-11311-9-110
11-9-11411-9-319
11-9-11511-9-102, 11-9-106, 11-9-301
11-9-11611-9-206
Part Two
11-9-20111-9-201
11-9-20211-9-202
11-9-20311-9-203
11-9-20411-9-204
11-9-20511-9-205
11-9-20611-9-403
11-9-20711-9-207
11-9-20811-9-210
Part Three
11-9-30111-9-102, 11-9-317
11-9-30211-9-310
11-9-30311-9-308
11-9-30411-9-312
11-9-30511-9-313
11-9-30611-9-102, 11-9-315
11-9-30711-9-320
11-9-30811-9-330
11-9-30911-9-331
11-9-31011-9-333
11-9-31111-9-401
11-9-31211-9-322, 11-9-322.1, 11-9-324
11-9-31311-9-334
11-9-31411-9-335
11-9-31511-9-336
11-9-31611-9-339
11-9-31711-9-402
11-9-31811-9-404, 11-9-405
Part Four
11-9-40111-9-501
11-9-40211-9-502, 11-9-503, 11-9-504, 11-9-506
11-9-40311-9-510, 11-9-511, 11-9-515, 11-9-516
11-9-40411-9-513
11-9-40511-9-514, 11-9-525
11-9-40611-9-525
11-9-40711-9-519, 11-9-523, 11-9-526
11-9-40811-9-505
11-9-409repealed
Part Five
11-9-50111-9-601, 11-9-602
11-9-50211-9-607
11-9-50311-9-609
11-9-50411-9-610—11-9-614
11-9-50511-9-620, 11-9-622
11-9-50611-9-623
11-9-50711-9-625
Revised Code Sections to Former Code Sections This table lists each section in the version of Article 9 of the Uniform Commercial Code in effect on and after July 1, 2001, and provides the comparable provisions for Article 9 in effect prior to July 1, 2001. It is intended to assist the user who is familiar with the new title to find comparable former provisions.
REVISED CODEFORMER CODE
—-—-
11-9-10111-9-101
11-9-10211-9-105, 11-9-106, 11-9-109, 11-9-115, 11-9-301, 11-9-306
11-9-10311-9-107
11-9-104none
11-9-105none
11-9-10611-9-115
11-9-107none
11-9-10811-9-110
Subpart Two
11-9-10911-9-104
11-9-11011-9-113
11-9-11111-9-111
Part Two, Subpart One
11-9-20111-9-201
11-9-20211-9-202
11-9-20311-9-203
11-9-20411-9-204
11-9-20511-9-205
11-9-20611-9-116
Subpart Two
11-9-20711-9-207
11-9-208none
11-9-209none
11-9-21011-9-208
Part Three, Subpart One
11-9-30111-9-103, 11-9-115
11-9-302none
11-9-30311-9-103
11-9-304none
11-9-30511-9-103
11-9-306none
11-9-307none
Subpart Two
11-9-30811-9-303
11-9-309none
11-9-31011-9-302
11-9-311none
11-9-31211-9-304
11-9-31311-9-305
11-9-314none
11-9-31511-9-306
11-9-316none
Subpart Three
11-9-31711-9-301
11-9-318none
11-9-31911-9-114
11-9-32011-9-307
11-9-321none
11-9-32211-9-312
11-9-322.111-9-312
11-9-323none
11-9-32411-9-312
11-9-325none
11-9-326none
11-9-327none
11-9-328none
11-9-329none
11-9-33011-9-308
11-9-33111-9-309
11-9-332none
11-9-33311-9-310
11-9-33411-9-313
11-9-33511-9-314
11-9-33611-9-315
11-9-337none
11-9-338none
11-9-33911-9-316
Subpart Four
11-9-340none
11-9-341none
11-9-342none
Part Four
11-9-40111-9-311
11-9-40211-9-317
11-9-40311-9-206
11-9-40411-9-318
11-9-40511-9-318
11-9-406none
11-9-407none
11-9-408none
11-9-409none
Part Five, Subpart One
11-9-50111-9-401
11-9-50211-9-402
11-9-50311-9-402
11-9-50411-9-402
11-9-50511-9-408
11-9-50611-9-402
11-9-507none
11-9-508none
11-9-509none
11-9-51011-9-403
11-9-51111-9-403
11-9-512none
11-9-51311-9-404
11-9-51411-9-405
11-9-51511-9-403
11-9-51611-9-403
11-9-517none
11-9-518none
Subpart Two
11-9-51911-9-407
11-9-520none
11-9-521none
11-9-522none
11-9-52311-9-407
11-9-524none
11-9-52511-9-405, 11-9-406
11-9-52611-9-407
Part Six, Subpart One
11-9-60111-9-501
11-9-60211-9-501
11-9-603none
11-9-604none
11-9-605none
11-9-606none
11-9-60711-9-502
11-9-608none
11-9-60911-9-503
11-9-61011-9-504
11-9-61111-9-504
11-9-61211-9-504
11-9-61311-9-504
11-9-61411-9-504
11-9-615none
11-9-616none
11-9-617none
11-9-618none
11-9-619none
11-9-62011-9-505
11-9-621none
11-9-62211-9-505
11-9-62311-9-506
11-9-624none
Subpart Two
11-9-62511-9-507
11-9-62611-9-504
11-9-62711-9-504
11-9-628none
Part Seven
11-9-701none
11-9-702none
11-9-703none
11-9-703none
11-9-705none
11-9-706none
11-9-707none
11-9-708none
11-9-709none
11-9-710none

JUDICIAL DECISIONS

Editor’s notes.

In light of the similarity of the statutory provisions, decisions under former Article 9 are included in the annotations for this Code section. For a table of comparable provisions, see the table at the beginning of the Article.

Purpose. —

Concept and intention of this article is to provide method whereby all security interests can be perfected. In some instances, filing is required, and in others, possession of collateral is only means available or permitted whereby creditor can perfect security interest. In re Atlanta Times, Inc., 259 F. Supp. 820, 1966 U. S. Dist. LEXIS 10458 (N. D. Ga. 1966), aff'd, 383 F.2d 606, 1967 U. S. App. LEXIS 4987 (5th Cir. 1967) (decided under former Article 9).

Applicability. —

This article applies to security transactions in broad spectrum of tangible and intangible personal property. Williams v. Western Pac. Fin. Corp., 643 F.2d 331, 1981 U. S. App. LEXIS 13963 (5th Cir. 1981) (decided under former Article 9).

Conflicts with former Installment Sales Act. —

Parties may contract to create security interest which will then be governed by provisions of Uniform Commercial Code unless those provisions conflict with specific terms in former Installment Sales Act. Brown v. Jenkins, 135 Ga. App. 694, 218 S. E.2d 690, 1975 Ga. App. LEXIS 1787 (1975) (decided under former Article 9).

Priorities between secured interests and setoff rights. —

This article applies to resolving priority disputes between Article 9 secured interests and contractual setoff rights, as distinguished from the creation of the right of setoff. Credit Alliance Corp. v. National Bank, 718 F. Supp. 954, 1989 U. S. Dist. LEXIS 10058 (N. D. Ga. 1989) (decided under former Article 9).

A valid maritime lien is superior to a perfected nonmaritime UCC security interest in the same collateral. Ambassador Factors v. First Am. Bulk Carrier Corp. (In re Topgallant Lines), 125 B. R. 682, 1991 Bankr. LEXIS 1074 (Bankr. S. D. Ga. 1991) (decided under former Article 9).

Perfection gives notice. —

Perfection of security interests under the Motor Vehicle Certificate of Title Act, as under the Uniform Commercial Code, serves purpose of giving notice to subsequent creditors. In re Firth, 363 F. Supp. 369, 1973 U. S. Dist. LEXIS 12015 (M. D. Ga. 1973) (decided under former Article 9).

Conversion of property subject to security interest. —

Where property is subject to security interest, exercise of dominion or control over property which is inconsistent with rights of secured party, constitutes, as to the secured party, conversion of the property; and there may be conversion by secured party where the party acts are in defiance of rights of others in the property. Trust Co. v. Associated Grocers Coop., 152 Ga. App. 701, 263 S. E.2d 676, 1979 Ga. App. LEXIS 3012 (1979) (decided under former Article 9).

Where a sale of collateral is, with respect to the secured party, a conversion of the collateral, there is a conversion on the part of the one who sells, as well as on the part of the one who purchases, and the purchaser may be liable regardless of intent, and regardless of the purchaser’s lack of actual knowledge of the rights of the secured party. Trust Co. v. Associated Grocers Coop., 152 Ga. App. 701, 263 S. E.2d 676, 1979 Ga. App. LEXIS 3012 (1979) (decided under former Article 9).

Where lease provisions retained title in the lessor and the leased machine was to be returned to the lessor at the termination of the lease with no residual interest therein to the lessee, the lease was not a security instrument and this article does not apply. Capital Assocs. v. Zabel, 172 Ga. App. 19, 322 S. E.2d 67, 1984 Ga. App. LEXIS 2378 (1984) (decided under former Article 9).

Where there was no agreement or intent by either party that the lessee would purchase leased equipment, the fact that the contract obligated the lessee to pay taxes, insurance, and expenses of repairs, and allowed the lessor to retain the equipment after it was returned, did not make the contract a security agreement rather than a lease. City Food Mart, Inc. v. Bell Atl. Tricon Leasing Corp., 218 Ga. App. 57, 460 S. E.2d 525, 1995 Ga. App. LEXIS 654 (1995), cert. denied, No. S95C1813, 1995 Ga. LEXIS 1215 (Ga. Nov. 3, 1995) (decided under former Article 9).

Transfer of part of security interest. —

There is no Georgia law that requires the simultaneous transfer of an underlying promissory note with the transfer of the security interest. Instead, the Georgia Commercial Code anticipates and allows a secured party’s assignment of all or part of its security interest. Tidwell v. Slocumb (In re Ga. Steel, Inc.), 71 B. R. 903, 1987 Bankr. LEXIS 428 (Bankr. M. D. Ga. 1987) (decided under former Article 9).

Retention of certificate of origin for mobile home. —

Where manufacturer retained certificate of origin for mobile home which was “on consignment” and not yet included in a retailer’s floor-plan arrangement, it was nonetheless in the retailer’s inventory and available for sale to its retail customers, and the rights of the parties were determined under the Uniform Commercial Code rather than the Motor Vehicle Certificate of Title Act, O. C. G. A. § 40-3-1 et seq. GECC v. Catalina Homes, Inc., 178 Ga. App. 319, 342 S. E.2d 734, 1986 Ga. App. LEXIS 1646 (1986) (decided under former Article 9).

Perfection of security interest in automobile. —

When bank financed purchase of car by car leasing business, the correct avenue for perfecting of its security interest in the car was through procedure set forth in the Motor Vehicle Certificate of Title Act ( O. C. G. A. § 40-3-1 et seq.) as opposed to filing of its financial statement under procedures established by the U. C. C. United Carolina Bank v. Capital Auto. Co., 163 Ga. App. 796, 294 S. E.2d 661, 1982 Ga. App. LEXIS 2653 (1982) (decided under former Article 9).

Limited partnership agreement. —

Where limited partners acquired their interest in a partnership by paying cash and giving a promissory note, and the limited partnership agreement provided that if the note were not paid by a date certain the limited partners’ interest in the partnership would be automatically reduced by the fraction of the principal remaining unpaid, the agreement did not constitute a security agreement governed by Article 9. Consolidated Equities Corp. v. Bird, 195 Ga. App. 45, 392 S. E.2d 276, 1990 Ga. App. LEXIS 385 (1990) (decided under former Article 9).

Opinion Notes

OPINIONS OF THE ATTORNEY GENERAL

In light of the similarity of the statutory provisions, opinions under former Article 9 are included in the annotations for this Code section. For a table of comparable provisions, see the table at the beginning of the article.

Definition of “security interest.” —

“Security interest” means an interest in personal property or fixtures which secures payment or performance of an obligation; retention or reservation of title by seller of goods notwithstanding shipment or delivery to buyer is limited in effect to reservation of “security interest”; this term also includes any interest of a buyer of accounts, chattel paper or contract rights. 1963-65 Ga. Op. Att'y Gen. 162 (decided under former Article 9).

Research References & Practice Aids

Cross references.

Effect of transfer of note secured by mortgage, etc., § 10-3-1.

Making of secured transactions and other dispositions of corporate property and assets not requiring shareholder approval, § 14-2-1201.

Criminal penalty for destruction, removal, concealment, encumbrance, or transfer of property subject to security interests, § 16-9-51.

Perfection and validity of security interests in motor vehicles, § 40-3-50 et seq.

Mortgages, conveyances to secure debt, etc., § 44-14-1 et seq.

Law reviews.

For comment on Maley v. National Acceptance Co., 250 F. Supp. 841 (N. D. Ga. 1966), see 3 Ga. St. B. J. 248 (1966).

For article discussing the effect of the Uniform Commercial Code upon the statutory lien provision of section 67(c) of the Bankruptcy Act, see 1 Ga. L. Rev. 149 (1967).

For article discussing federal truth in lending provisions and their relation to state laws, see 6 Ga. St. B. J. 19 (1969).

For article discussing secured lending, and offering some practical guidelines, see 28 Mercer L. Rev. 699 (1977).

For article discussing fifth circuit bankruptcy cases in 1977, see 29 Mercer L. Rev. 937 (1978).

For article surveying Georgia cases dealing with commercial law from June 1977 through May 1978, see 30 Mercer L. Rev. 15 (1978).

For article discussing possible impact of new Bankruptcy Code on Article 9 of the Uniform Commercial Code, see 14 Ga. L. Rev. 153 (1980).

For article, “The Good Faith Purchase Idea and the Uniform Commercial Code,” see 15 Ga. L. Rev. 605 (1981).

For case note, “Midlantic National Bank v. New Jersey Department of Environmental Protection: The Problem of Hazardous Wastes and the Bankrupt Firm,” see 38 Mercer L. Rev. 693 (1987).

For article, “State Administrative Agency Contested Case Hearings,” see 24 Ga. St. B. J. 193 (1988).

For article, “Contribution Arguments in Commercial Law,” see 42 Emory L. J. 897 (1993).

For annual survey article discussing developments in commercial law, see 51 Mercer L. Rev. 165 (1999).

For comment, “ ‘The Twain Shall Meet’: A Real Property Approach to Article 9 Perfection,” see 64 Emory L. J. 1103 (2015).

For article, “Perfecting Bitcoin,” see 52 Ga. L. Rev. 505 (2018).

For note, “Pay Toll with Coins: Looking Back on FBAR Penalties and Prosecutions to Inform the Future of Cryptocurrency Taxation,” see 55 Ga. L. Rev. 359 (2020).

RESEARCH REFERENCES Am. Jur. 2d.

68A Am. Jur. 2d, Secured Transactions, § 1 et seq.

C.J.S.

79 C. J. S., Secured Transactions, § 1 et seq.

ALR.

Liability for assault or trespass in forcibly retaking property sold conditionally, 9 A. L. R. 1180; 105 A. L. R. 926; 99 A. L. R.2d 358.

Bankruptcy: effect of filing secured debt as an unsecured claim, 46 A. L. R. 922.

Rights of parties to conditional sale as affected by breach of warranty, 48 A. L. R. 969, 130 A. L. R. 753.

Construction and effect of UCC Article 9, dealing with secured transactions, sales of accounts, contract rights, and chattel paper, 30 A. L. R.3d 9; 67 A. L. R.3d 308; 69 A. L. R.3d 1162; 76 A. L. R.3d 11; 99 A. L. R.3d 807; 99 A. L. R.3d 1080; 100 A. L. R.3d 10; 100 A. L. R.3d 940; 7 A. L. R.4th 308; 11 A. L. R.4th 241; 25 A. L. R.5th 696.

Effect of UCC article 9 upon conflict, as to funds in debtor’s bank account, between secured creditor and bank claiming right of setoff, 3 A. L. R.4th 998.

Security interests in liquor licenses, 56 A. L. R.4th 1131.

Applicability of Article 9 of Uniform Commercial Code to assignment of rights under real-estate sales contract, lease agreement, or mortgage as collateral for separate transaction, 76 A. L. R.4th 765.

Construction and effect of “future advances” clauses under UCC Article 9, 90 A. L. R.4th 859.

Equitable estoppel of secured party’s right to assert prior, perfected security interest against other secured creditor or subsequent purchaser under Article 9 of Uniform Commercial Code, 9 A. L. R.5th 708.

Liability of secured creditor under Uniform Commercial Code to third party on ground of unjust enrichment, 27 A. L. R.5th 719.

Hierarchy Notes:

O. C. G. A. Title 11


Universal Citation:
O.C.G.A. Title 11, Art. 9
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
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