O.C.G.A. § 10-1-8 (2019)
Limitations on security interest; application of payments to revolving accounts
(a) Any security interest taken pursuant to a retail installment contract or revolving account shall not be taken with respect to clothing, softwares, and other nondurable items. Each payment with respect to a revolving account shall be applied to goods and services as follows: first to unpaid time price differential or finance charge; then, as to goods purchased on different dates, the first purchased shall be deemed first paid for; as to goods purchased on the same date, the lowest priced shall be deemed first paid for. (b) Nothing contained in subsection (a) of this Code section shall prevent the parties from agreeing in writing for the payments to be otherwise applied; provided, however, that this Code section shall be construed consistently with Part 2 of Article 15 of this chapter, the “Fair Business Practices Act of 1975.” Nothing in this Code section shall be deemed to authorize any act or practice which would otherwise be deemed unfair and deceptive under Part 2 of Article 15 of this chapter, the “Fair Business Practices Act of 1975.”
History
Ga. L. 1976, p. 721, § 2; Ga. L. 1994, p. 696, § 1.
Annotations
JUDICIAL DECISIONS Section does not apply to duration of security interest. - This section, which provides that payments on revolving accounts are to be applied first to goods which are first purchased has nothing to do with the creation, duration, definition, or enforcement of purchase
money security interests in consumer goods and, specifically, does not purport to terminate a security interest contrary to the clear terms of a security agreement. In re Norrell, 426 F. Supp. 435, 1977 U.S. Dist. LEXIS 17620 (M.D. Ga. 1977).
RESEARCH REFERENCES Am. Jur. 2d. 67 Am. Jur. 2d, Sales, §§ 253 et seq., 589. ALR. Validity and construction of revolving
charge account contract or plan, 41 A.L.R.3d 682.
SELLING/OTHER TRADE PRACTICES