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(Code 1981, §11-9-310, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2010, p. 481, § 2-24/HB 451.)
The 2010 amendment, effective May 27, 2010, inserted ", control," in paragraph (b)(5); and inserted "electronic documents," in paragraph (b)(8). See the Editor's notes for applicability.
- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.
Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.
- For article discussing the classification of a continuing security interest in changing collateral as an unenforceable preference under Section 60a of the Bankruptcy Act, see 1 Ga. L. Rev. 257 (1967). For article, "Security Transfers by Secured Parties," see 4 Ga. L. Rev. 527 (1970). For article, "Commercial Law," see 53 Mercer L. Rev. 153 (2001). For note examining the conflict between the floating lien in after-acquired property under the Uniform Commercial Code and the voidable preferences provisions of the Bankruptcy Act, see 9 Ga. L. Rev. 685 (1975). For comment on Maley v. National Acceptance Co., 250 F. Supp. 841 (N.D. Ga. 1966), see 3 Ga. St. B.J. 248 (1966).
- In the light of the similarity of the 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.
Filing of financing statement can perfect only those interests acquired through security agreements. Tri-County Livestock Auction Co. v. Bank of Madison, 228 Ga. 325, 185 S.E.2d 393 (1971) (decided under former Code Section11-9-302).
- Financing statement merely gives notice of existence of security interest but in itself does not create a security interest, for which a security agreement is required. Trust Co. v. Associated Grocers Co-Op., 152 Ga. App. 701, 263 S.E.2d 676 (1979) (decided under former Code Section11-9-302).
- To perfect a purchase money security interest and for it to be enforceable against debtor and third parties, there must be a written agreement, signed by debtor under former § 11-9-203(1)(b) and filing of financing statement under former § 11-9-302(1) (see now § 11-9-310). Food Serv. Equip. Co. v. First Nat'l Bank, 121 Ga. App. 421, 174 S.E.2d 216 (1970) (decided under former Code Section11-9-302).
- Georgia's Article 9 of the Uniform Commercial Code requires proper filing of a financing statement in order to perfect an interest in personal property. The creditor did not dispute that a financing statement indicating the creditor's security interest in any of the debtor's personal property had not been filed and, therefore, the creditor held an unperfected security interest in the debtor's personal property, including the debtor's inventory and its proceeds; thus, the creditor was not an entity with an interest in cash collateral within the meaning of 11 U.S.C. § 363. In re Shree Meldikrupa Inc., Bankr. (Bankr. S.D. Ga. Jan. 15, 2016).
- Computer information and programming recorded on magnetic tape were "general intangibles" which are not included in the types of collateral in which security interests can be perfected by possession under former § 11-9-305 (see now § 11-9-313), and a security interest therein could therefore only be perfected by filing a financing statement. Dabney v. Information Exch., Inc., 98 Bankr. 603 (Bankr. N.D. Ga. 1989) (decided under former Code Section11-9-302).
- Creditor had a valid post-petition lien in rents, profits, and proceeds from a Chapter 11 debtor's hotel operations, though the creditor took no pre-petition enforcement action under Georgia law, as its lien in the pre-petition rents was valid from the time of recording, and the lien in post-petition rents was valid from the time of the bankruptcy filing. In re Resort Inns, Inc., Bankr. (Bankr. S.D. Ga. Aug. 30, 2004).
- This section required filing of financing statement to perfect security interest in accounts. M.D. Hodges Enters., Inc. v. First Ga. Bank, 243 Ga. 664, 256 S.E.2d 350 (1979) (decided under former Code Section11-9-302).
- To take precedence over previously recorded loan deed covering subsequently purchased equipment, equipment lessor must perfect security interest. Citizens & S. Equip. Leasing, Inc. v. Atlanta Fed. Sav. & Loan Ass'n, 144 Ga. App. 800, 243 S.E.2d 243 (1978) (decided under former Code Section11-9-302).
- Bank perfected security interest by filing UCC financing statement. See Trust Co. Bank v. Walker, 35 Bankr. 237 (Bankr. N.D. Ga. 1983) (decided under former Code Section 11-9-302).
- Security interest in money (either originally given or received as proceeds from negotiation of instrument) is perfected by possession. In re Atlanta Times, Inc., 259 F. Supp. 820 (N.D. Ga. 1966), aff'd sub. nom. Sanders v. National Acceptance Co. of Am., 383 F.2d 606 (5th Cir. 1967) (decided under former Code Section 11-9-302).
- Peanut growers' attempted reservation of title when the growers delivered peanuts to a peanut company at a peanut broker's direction amounted to a security interest; however, the growers never perfected the growers' security interests. A cooperative bank's security interest in the peanuts was perfected as the bank had filed financing statements and the security interest had attached so that the bank's perfected security interest had priority over the growers' unperfected security interests. Farm Credit of Northwest Fla., ACA v. Easom Peanut Co., 312 Ga. App. 374, 718 S.E.2d 590 (2011), cert. denied, No. S12C0444, 2012 Ga. LEXIS 315 (Ga. 2012).
- This section, pursuant to which purchase money security interest in consumer goods is perfected without filing, does not violate equal protection, is a rational classification, and does not violate due process because it does not provide notice by filing, since existence of exception is sufficient to put corporate entities on notice. Personal Thrift Plan of Perry, Inc. v. Georgia Power Co., 242 Ga. 388, 249 S.E.2d 72 (1978) (decided under former Code Section11-9-302).
- Purchase money security agreements on consumer goods are not required to be filed, and purpose of description of collateral in unfiled security agreement is not to give notice, as on a financing statement, but is to provide identification of collateral so as to avoid disputes over its identity. Personal Thrift Plan of Perry, Inc. v. Georgia Power Co., 242 Ga. 388, 249 S.E.2d 72 (1978) (decided under former Code Section11-9-302).
- Purchase money security interest must be in the item purchased, and if vendor of consumer goods is to be protected despite absence of filing security interest cannot exceed price of item purchased in transaction out of which it arose. Roberts Furn. Co. v. Pierce, 507 F.2d 990 (5th Cir. 1975) (decided under former Code Section 11-9-302).
- A purchase-money security interest in household goods is automatically perfected without filing. Dennis v. W.S. Badcock Corp., 31 Bankr. 128 (Bankr. M.D. Ga. 1983) (decided under former Code Section 11-9-302).
- Financing statement must be filed to perfect all security interests unless assignment to assignee does not transfer a significant part of outstanding contract rights of assignor. Park Ave. Bank v. Bassford, 232 Ga. 216, 205 S.E.2d 861 (1974) (decided under former Code Section11-9-302).
- Official comment to this section indicates that exception from filing for isolated or casual assignment of accounts is not available to "any person who regularly takes assignments of any debtor's account"; a bank which regularly loans money and accepts accounts as security must file to perfect its security interests and cannot rely on automatic perfection. M.D. Hodges Enters., Inc. v. First Ga. Bank, 243 Ga. 664, 256 S.E.2d 350 (1979) (decided under former Code Section11-9-302).
- Debtor's assignment to bank of specific amounts from future proceeds from debtor's business was not exempted from this article and was required to be perfected by the filing of a financing statement. Bank of Cave Spring v. Gold Kist, Inc., 173 Ga. App. 679, 327 S.E.2d 800 (1985) (decided under former Code Section11-9-302).
- Security interest in automobiles in dealer's inventory must be perfected under this article. Staley v. Phelan Fin. Corp., 116 Ga. App. 1, 156 S.E.2d 201 (1967). But see In re Chappell, 224 Bankr. 507 (Bankr. M.D. Ga. 1998).
- Security interest in motor vehicle may be perfected under Motor Vehicle Certificate of Title Act, Ga. L. 1968, p. 68 et seq., if created by other than a dealer or manufacturer or under Uniform Commercial Code if by a dealer or manufacturer. Guardian Disct. Co. v. Settles, 114 Ga. App. 418, 151 S.E.2d 530 (1966) (decided under former Code Section11-9-302).
As a result of adoption of former § 11-9-302 and the UCC, the only way to perfect security interest in motor vehicles is by filing under Motor Vehicle Certificate of Title Act, Ga. L. 1968, p. 68 et seq. Staley v. Phelan Fin. Corp., 116 Ga. App. 1, 156 S.E.2d 201 (1967); General Fin. Corp. v. Hester, 141 Ga. App. 28, 232 S.E.2d 375 (1977); Freeman v. Bentley, 205 Ga. App. 409, 422 S.E.2d 435 (1992). But see In re Chappell, 224 Bankr. 507 (Bankr. M.D. Ga. 1998).
- Legal result of passage of Uniform Commercial Code was to replace prior law and provide for only one centralized method of filing security interests in pre-1963 motor vehicles. Any such security interest filed subsequent to effective date of Uniform Commercial Code, to be valid, must be filed pursuant to provisions of the Georgia Motor Vehicle Certificate of Title Act, Ga. L. 1968, p. 68 et seq. Maley v. National Acceptance Co., 250 F. Supp. 841 (N.D. Ga. 1966). But see In re Chappell, 224 Bankr. 507 (Bankr. M.D. Ga. 1998).
- Under this section and the Motor Vehicle Certificate of Title Act, O.C.G.A. §§ 40-3-20,40-3-50,40-3-51, the rights of the holder of an unperfected security interest in an automobile are subordinate to the rights of an innocent third party who acquires the automobile for value. A party who purchases a car from another party, who purchased the car at a judicial sale after the car, which had an unperfected security interest on it, was sold to satisfy a judgment against the owner's spouse, is such an innocent party. May v. Macioce, 200 Ga. App. 542, 409 S.E.2d 45, cert. denied, 200 Ga. App. 896, 409 S.E.2d 45 (1991) (decided under former Code Section11-9-302).
- 68A Am. Jur. 2d, Secured Transactions, §§ 15, 39-69, 104, 106, 110, 127, 128, 149, 150, 192 et seq., 282, 288 et seq., 304, 306, 323, 437-461, 796, 907.
- 6A C.J.S., Assignments, §§ 79, 80, 85. 72 C.J.S., Pledges, § 23.
- Uniform Commercial Code (U.L.A.) § 9-310.
- Rights of holders of different notes in respect of collateral securing them, 52 A.L.R. 1391.
Retention of check received by drawee bank for collection as payment of check, 68 A.L.R. 862.
Assignees for creditors as within protection of statute requiring filing or recording of conditional-sale contract or chattel mortgage, 71 A.L.R. 981.
Assignability of contemplated debt before execution of agreement by which it is to be created, 116 A.L.R. 955.
Federal government or agencies of federal government as subject to payment of tax or fee imposed upon, or for, recording or filing instrument, 124 A.L.R. 1267.
Coverage of "nonrecording" or "nonfiling" insurance against loss from failure to record chattel mortgage, conditional sale, or other security instrument, 51 A.L.R.2d 325.
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.
Determination of purchase price of farm equipment for purposes of UCC § 9-302(1)(c) excusing filing of financing statement, 85 A.L.R.3d 1037.
When is filing of financing statement necessary to perfect an assignment of accounts under UCC § 9-302(1)(e), 85 A.L.R.3d 1050.
Effectiveness of original financing statement under UCC Article 9 after change in debtor's name, identity, or business structure, 99 A.L.R.3d 1194.
Construction and effect of "future advances" clauses under UCC Article 9, 90 A.L.R.4th 859.
Creation and perfection of security interests in insurance proceeds under Article 9 of Uniform Commercial Code, 47 A.L.R.6th 347.
Total Results: 1
Court: Supreme Court of Georgia | Date Filed: 1992-07-16
Citation: 418 S.E.2d 601, 262 Ga. 364, 18 U.C.C. Rep. Serv. 2d (West) 643, 92 Fulton County D. Rep. 1414, 1992 Ga. LEXIS 586
Snippet: security interest. We disagree and reverse. 1. OCGA § 11-9-310 (d)[1] establishes that a duly rendered judgment