O.C.G.A.
O.C.G.A.

O.C.G.A. § 10-1-681 (2019)

Definitions

✓ O.C.G.A. (archive.org 2024 item): print volumes of 2004-2024, per-volume vintage; older volumes partly replaced by 2019 Release 73 text; no 2025 or 2026 Acts
Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.
Find cases: SyfertCases citing this section GA-LEGlegis.ga.gov (official) JustiaJustia CornellLII Search CasesGoogle Scholar

As used in this article, the term:

(1) “Lease-purchase agreement” means an agreement for the use of personal property by a lessee primarily for personal, family, or household purposes for an initial period of four months or less that is renewable with each payment after the initial period and that permits the lessee to become the owner of the property. Leasepurchase agreements shall not include any of the following:

(A) A lease or agreement which constitutes a credit sale as defined in 12 C.F.R. 226.2(a)(16) and Section 1602(g) of the Truth-in-Lending Act, 15 U.S.C. Section 1601, et seq.;

(B) A lease which constitutes a consumer lease as defined in 12 C.F.R. 213.2(a)(6);

(C) Any lease for agricultural, business, or commercial purposes;

(D) Any lease made to an organization; or

(E) A lease or agreement which constitutes a retail installment transaction as defined in paragraph (10) of subsection (a) of Code Section 10-1-2.

(2) “Lessee” means a person who leases property pursuant to a lease-purchase agreement.

(3) “Lessor” means a person who, in the ordinary course of business, regularly leases, offers to lease, or arranges for the leasing of property under a lease-purchase agreement.

(4) “Period” means a day, week, month, or other subdivision of a year.

History

Code 1981, § 10-1-681, enacted by Ga.

L. 1985, p. 1341, § 1; Ga. L. 2000, p. 136, § 10.

SELLING/OTHER TRADE PRACTICES

Annotations

JUDICIAL DECISIONS

Lease-purchase agreement meeting the requirements of O.C.G.A § 10-1-681 constituted a true lease, not a security agreement, and was subject to § 365 of the Bankruptcy Code, 11 U.S.C. § 365. Central Rents, Inc. v. Johnson, 203 Bankr. 498 (Bankr. S.D. Ga. 1996).

Agreement not lease-purchase. - Claimant's unwritten agreement with an individual concerning a vehicle was not a lease-purchase agreement because it had a 36-month term; additionally, the agreement was a credit sale under the Truth in Lending Act and Regulation Z because the agreement plainly required the individual to pay the full value of the vehicle and provided that the individual would become the vehicle's owner for no additional consideration upon payment of the purchase price. United States v. Bushay, 34 F. Supp. 3d 1260 (N.D. Ga. Aug. 5, 2014).

Notes of Decisions
Cited in 5 cases (1 in the last 5 years), 1996–2021 · leading case: Clark v. Aaron's, Inc., 914 F. Supp. 2d 1301 (N.D. Ga. 2012).
Sort: Relevance Newest Treatment
Clark v. Aaron's, Inc., 914 F. Supp. 2d 1301 (N.D. Ga. 2012). · cites it 2× “See O.C.G.A. § 10-1-681(1)(E) (excluding from the definition of lease-purchase agreements “[a] lease or agreement which constitutes a retail installment transaction as defined in paragraph (10) of subsection (a) of Code Section 10-1-2”) (emphasis added).”
Cent. Rents, Inc. v. Johnson (In Re Johnson), 203 B.R. 498 (Bankr. S.D. Ga. 1996). · cites it 8× “Furthermore, finding that the existence of a three month initial lease period excepts the Agreement from the definition of a Lease-Purchase Agreement contradicts paragraph 1 of O.C.G.A. § 10-1-681 which allows for an initial period of up to four months.”
United States v. Bushay, 34 F. Supp. 3d 1260 (N.D. Ga. 2014). · cites it 2× “” O.C.G.A. § 10-1-681(1). Nugen’s oral agreement with Henry has no “initial period”; it has a term of thirty-six months, though Henry can pay his debt off sooner.”
Smart v. West Creek Fin. Inc, No. 5:20-cv-00250 (M.D. Ga. Feb. 5, 2021). · cites it 2× “Georgia Lease-Purchase Agreement Act (GLPAA) Smart alleges that WCF’s rent-to-own agreement “‘was a lease-purchase agreement’ as defined under O.C.G.A. § 10-1-681(1).” Doc. 30 ¶ 74. Smart further alleges that the agreement’s duration violated the GLPAA’s limitation.”
RentalAccess, LLC v. Johnson (In re Johnson), 587 B.R. 195 (Bankr. M.D. Ga. 2018). “Compare O.C.G.A. § 10-1-681 with Tenn. Code Ann. § 47-18-603 .”
10-1-681(1): 3 cases
Cent. Rents, Inc. v. Johnson (In Re Johnson), 203 B.R. 498 (Bankr. S.D. Ga. 1996). “Furthermore, finding that the existence of a three month initial lease period excepts the Agreement from the definition of a Lease-Purchase Agreement contradicts paragraph 1 of O.C.G.A. § 10-1-681 which allows for an initial period of up to four months.”
United States v. Bushay, 34 F. Supp. 3d 1260 (N.D. Ga. 2014). “” O.C.G.A. § 10-1-681(1). Nugen’s oral agreement with Henry has no “initial period”; it has a term of thirty-six months, though Henry can pay his debt off sooner.”
Smart v. West Creek Fin. Inc, No. 5:20-cv-00250 (M.D. Ga. Feb. 5, 2021). “Georgia Lease-Purchase Agreement Act (GLPAA) Smart alleges that WCF’s rent-to-own agreement “‘was a lease-purchase agreement’ as defined under O.C.G.A. § 10-1-681(1).” Doc. 30 ¶ 74. Smart further alleges that the agreement’s duration violated the GLPAA’s limitation.”
10-1-681(1)(E): 1 case
Clark v. Aaron's, Inc., 914 F. Supp. 2d 1301 (N.D. Ga. 2012). “See O.C.G.A. § 10-1-681(1)(E) (excluding from the definition of lease-purchase agreements “[a] lease or agreement which constitutes a retail installment transaction as defined in paragraph (10) of subsection (a) of Code Section 10-1-2”) (emphasis added).”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.