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

O.C.G.A. § 11-9-402 (2019)

Secured party not obligated on contract of debtor or in tort

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)
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.
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The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions.

History

Code 1981, § 11-9-402, enacted by Ga. L. 2001, p. 362, § 1.

Annotations

RESEARCH REFERENCES Am. Jur. 2d. 68A Am. Jur. 2d, Secured Transactions, §§ 510, 554, 926-930. C.J.S. 77A C.J.S., Sales, § 291.

U.L.A. Uniform Commercial Code (U.L.A.) § 9402.

Notes of Decisions
Cited in 24 cases, 1983–2010 · leading case: Jones v. Small Bus. Admin. (In Re Cohutta Mills, Inc.), 108 B.R. 815 (N.D. Ga. 1989).
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Jones v. Small Bus. Admin. (In Re Cohutta Mills, Inc.), 108 B.R. 815 (N.D. Ga. 1989). · cites it 9× “See § 11-9-402. The statutes do not contain a similar provision for continuation statements.”
U.S. Cylinders, Inc. v. Vital Breathing Prods., Inc. (In Re Vital Breathing Prods., Inc.), 98 B.R. 97 (Bankr. N.D. Ga. 1988). · cites it 12× “Section 11-9-402(1) provides in pertinent part as follows: A financing statement is sufficient if it gives the names of the debtor and the secured party .”
Giddens v. Pioneer Credit (In re Giddens), 205 B.R. 349 (Bankr. M.D. Ga. 1997). · cites it 18× “, where both (i) the collateral described consists only of consumer goods as defined in Code Section 11-9-109, and (ii) the secured obligation as defined in subsection (1) of Code Section 11-9-402 is originally $5,000.00, or less, specify the maturity date of the secured…”
Loeb v. Franchise Distributors, Inc. (In Re Franchise Sys., Inc.), 46 B.R. 158 (Bankr. N.D. Ga. 1985). · cites it 6× “Georgia Bank also relies upon O.C.G.A. § 11-9-402(7) which provides that A financing statement sufficiently shows the name of the debtor if it gives the individual, partnership, or corporate name of the debtor, whether or not it adds other trade names or the names or partners.”
Rainbow Mfg. Co. v. Bank of Fitzgerald (In Re Rainbow Mfg. Co.), 129 B.R. 702 (Bankr. M.D. Ga. 1991). · cites it 10× “slature adopted a new subsection, which provides: (8) Except as provided in subsection (6) of this Code section, any financing statement or continuation statement which was filed on or after July 1, 1985, which described collateral not consisting only of consumer goods as…”
W. Auto Supply Co. v. McKenzie, 489 S.E.2d 537 (Ga. Ct. App. 1997). · cites it 8× “OCGA § 11-9-402 (7) provides in pertinent part: “Where the debtor so changes his name, or in the case of an organization, its name, identity, or corporate structure, that a filed financing statement becomes seriously misleading, the filing is not effective to perfect a security…”
Kelley v. Citizens & S. Nat'l Bank of Thomasville (In re Adams), 102 B.R. 271 (D. Ga. 1989). · cites it 4× “Under Georgia law, O.C.G.A. § 11-9-402, 5 a financing statement is sufficient if: (1) it-gives the name of the debtor and secured party; (2) it is signed by the debtor; (3) it gives an address of the secured party from which information concerning the security interest may be…”
Kubota Tractor Corp. v. Citizens & S. Nat'l Bank, 403 S.E.2d 218 (Ga. Ct. App. 1991). · cites it 2× “) OCGA § 11-9-402 (4) (Ga. Code Ann. § 109A-9-402 (4)); Anderson, 9 Uniform Commercial Code (3d ed.”
Lewis v. D. Hays Trucking, Inc., 701 F. Supp. 2d 1300 (N.D. Ga. 2010). · cites it 2× “The fact that under the terms of the security agreements, Hays was required to produce a load of stumpwood at least every thirty days or that Hercules had taken a security interest in Hays’ equipment that meant Hays could not use those bulldozers to “push” stumps for anyone…”
Griswold v. United States, 59 F.3d 1571 (11th Cir. 1995). “402(1); Ga.Code Ann. § 11-9-402(1). Termination statements must be filed within a certain time period from the end of a secured party’s interest in property and must identify the original financing statements by filing number.”
Tidwell v. Slocumb (In Re Georgia Steel, Inc.), 71 B.R. 903 (Bankr. M.D. Ga. 1987). · cites it 2× “§ 11-2-210 (1982) and O.C.G.A. § 11-9-402 (1982), a right of action directly or indirectly involving a right of property is assignable.”
State v. Mozley, 357 S.E.2d 313 (Ga. Ct. App. 1987). · cites it 2× “requirement of good faith, and the implications flowing from that requirement, as to whether they were required either to file a corrected financing statement as provided under OCGA § 11-9-402 (2) (d) . . . , or to file originally under the corporation’s name in Fulton County.”
Show all 24 citing cases →
— 11-9-402(1) — 10 cases
Giddens v. Pioneer Credit (In re Giddens), 205 B.R. 349 (Bankr. M.D. Ga. 1997). “, where both (i) the collateral described consists only of consumer goods as defined in Code Section 11-9-109, and (ii) the secured obligation as defined in subsection (1) of Code Section 11-9-402 is originally $5,000.00, or less, specify the maturity date of the secured…”
Rainbow Mfg. Co. v. Bank of Fitzgerald (In Re Rainbow Mfg. Co.), 129 B.R. 702 (Bankr. M.D. Ga. 1991). “slature adopted a new subsection, which provides: (8) Except as provided in subsection (6) of this Code section, any financing statement or continuation statement which was filed on or after July 1, 1985, which described collateral not consisting only of consumer goods as…”
Jones v. Small Bus. Admin. (In Re Cohutta Mills, Inc.), 108 B.R. 815 (N.D. Ga. 1989). “See § 11-9-402. The statutes do not contain a similar provision for continuation statements.”
Griswold v. United States, 59 F.3d 1571 (11th Cir. 1995). “402(1); Ga.Code Ann. § 11-9-402(1). Termination statements must be filed within a certain time period from the end of a secured party’s interest in property and must identify the original financing statements by filing number.”
U.S. Cylinders, Inc. v. Vital Breathing Prods., Inc. (In Re Vital Breathing Prods., Inc.), 98 B.R. 97 (Bankr. N.D. Ga. 1988). “Section 11-9-402(1) provides in pertinent part as follows: A financing statement is sufficient if it gives the names of the debtor and the secured party .”
— 11-9-402(4) — 1 case
Giddens v. Pioneer Credit (In re Giddens), 205 B.R. 349 (Bankr. M.D. Ga. 1997). “, where both (i) the collateral described consists only of consumer goods as defined in Code Section 11-9-109, and (ii) the secured obligation as defined in subsection (1) of Code Section 11-9-402 is originally $5,000.00, or less, specify the maturity date of the secured…”
— 11-9-402(5) — 1 case
Matter of Coody, 59 B.R. 164 (Bankr. M.D. Ga. 1986).
— 11-9-402(7) — 7 cases
Jones v. Small Bus. Admin. (In Re Cohutta Mills, Inc.), 108 B.R. 815 (N.D. Ga. 1989). “See § 11-9-402. The statutes do not contain a similar provision for continuation statements.”
Loeb v. Franchise Distributors, Inc. (In Re Franchise Sys., Inc.), 46 B.R. 158 (Bankr. N.D. Ga. 1985). “Georgia Bank also relies upon O.C.G.A. § 11-9-402(7) which provides that A financing statement sufficiently shows the name of the debtor if it gives the individual, partnership, or corporate name of the debtor, whether or not it adds other trade names or the names or partners.”
U.S. Cylinders, Inc. v. Vital Breathing Prods., Inc. (In Re Vital Breathing Prods., Inc.), 98 B.R. 97 (Bankr. N.D. Ga. 1988). “Section 11-9-402(1) provides in pertinent part as follows: A financing statement is sufficient if it gives the names of the debtor and the secured party .”
Pettigrew v. Consultants United, Inc. (In Re Specialcare, Inc.), 209 B.R. 13 (Bankr. N.D. Ga. 1997).
Willson v. Habersham Bank, 111 B.R. 368 (N.D. Ga. 1990).
— 11-9-402(8) — 2 cases
U.S. Cylinders, Inc. v. Vital Breathing Prods., Inc. (In Re Vital Breathing Prods., Inc.), 98 B.R. 97 (Bankr. N.D. Ga. 1988). “Section 11-9-402(1) provides in pertinent part as follows: A financing statement is sufficient if it gives the names of the debtor and the secured party .”
Jones v. Small Bus. Admin. (In Re Cohutta Mills, Inc.), 108 B.R. 815 (N.D. Ga. 1989). “See § 11-9-402. The statutes do not contain a similar provision for continuation statements.”
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