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(Code 1981, §11-9-515, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2013, p. 690, § 13/SB 185.)
The 2013 amendment, effective July 1, 2013, added subsection (e).
- For article on the 1963 amendment to the Georgia Uniform Commercial Code, see 14 Mercer L. Rev. 378 (1963). For article, "The Revisions to Article IX of the Uniform Commercial Code," see 15 Ga. St. B.J. 120 (1977). For article, "H.B. 712: New Requirements for Financing Statements and Continuation Statements Filed in Georgia," see 22 Ga. St. B.J. 6 (1985). For article surveying commercial law in 1984-1985, see 37 Mercer L. Rev. 139 (1985). For article, "H.B. 1364: Revised Requirements for Financing Statements and Continuation Statements Filed in Georgia," see 23 Ga. St. B.J. 50 (1986). For annual survey of law of real property, see 38 Mercer L. Rev. 319 (1986). For survey article on commercial law, see 44 Mercer L. Rev. 99 (1992).
- 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.
- The time computation would be made from the filing day and would expire on midnight of the day preceding the anniversary date of filing. In order to be effective, any continuation statement would have to be filed within six months prior to expiration of the five-year period. Harrelson Rubber Co. v. Super Treads, Inc., 7 Bankr. 532 (Bankr. M.D. Ga. 1980) (decided under former Code Section 11-9-403).
- Upon the lapse of a seriously misleading, though partially effective, financing statement, the secured party, acting in good faith, must file a continuation statement under the new debtor's name if it wishes to sustain its perfected status. Jones v. Small Bus. Admin. (In re Cohutta Mills, Inc.), 108 Bankr. 815 (N.D. Ga. 1989) (decided under former Code Section 11-9-403).
- Although a bank's security interests in equipment were properly perfected and remained so throughout a buyer's acquisition of the equipment from the debtor, those security interests were deemed never to have been perfected as against a purchaser for value when the bank failed to file timely continuation statements, under O.C.G.A. § 11-9-515(b), and the buyer took free of the security interests under O.C.G.A. § 11-9-317(b) because the buyer did not have actual knowledge of the security interests. Four County Bank v. Tidewater Equip. Co., 331 Ga. App. 753, 771 S.E.2d 437 (2015).
- Plaintiffs' filing of their financing statement in the proper county gave defendant legal notice of plaintiffs' security interests and liens in peanut crops defendant purchased, even though the clerk incorrectly recorded the financing statement, and the perfected security interests remained effective even though the crops were harvested. Bartolan, Inc. v. Columbian Peanut Co., 727 F. Supp. 1444 (M.D. Ga. 1989) (decided under former Code Section 11-9-403).
Former subsection (8) was intended to save financing and continuation statements that had been filed in conformity with the 1985 amendments to Article 9. Only secured parties who had failed to continue their perfected security interest, and secured creditors whose security interest had legitimately expired were not continued, or saved, by operation of law. In re Rainbow Mfg. Co., 150 Bankr. 857 (M.D. Ga. 1993) (decided under former Code Section 11-9-403).
- Bank was properly perfected as a result of the filing of its financing statement and continuation statement. Former subsection (8) continued the continuation statement for a period of five years, regardless of the stated maturity date on the form. As a result of these acts, the bank would be perfected until five years after the continuation statement was filed. In re Rainbow Mfg. Co., 150 Bankr. 857 (M.D. Ga. 1993) (decided under former Code Section 11-9-403).
- Former subsection (3) worked to allow filing officers (Superior Court Clerks) to refuse to accept continuation statements until the last 6 months of the previous filing's effectiveness. Once the new filing is accepted, however, it is in force for a period of five years, not from the filing date of the financing statement, but from the date of the filing of the new statement, under former subsection (8). In re Rainbow Mfg. Co., 150 Bankr. 857 (M.D. Ga. 1993) (decided under former Code Section 11-9-403).
Continuation statement filed by a secured creditor prior to the six-month period set forth in former subsection (3) was effective for five years from the date of filing and extended the creditor's security interest in certain assets of the debtor beyond the original period of protection. Coats Am., Inc. v. Summit Nat'l Bank, 211 Bankr. 771 (N.D. Ga 1997) (decided under former Code Section 11-9-403).
- A second financing statement filed by the same creditor covering the same collateral could not be considered a continuation statement under this former section, or an amendment to the original under former § 11-9-402, but was deemed to be a back-up financing statement with its own separately established priority, and, where the debtor's bankruptcy petition was filed while the first financing statement was still effective, creditor's first-in time priority status under the original statement was preserved. Giddens v. Pioneer Credit, 205 Bankr. 349 (Bankr. M.D. Ga. 1997).
Cited in Hamburger v. PFM Capital Mgmt., 286 Ga. App. 382, 649 S.E.2d 779 (2007).
- In the light of the similarity of the 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.
Timely filing of succeeding continuation statements pursuant to this former section continues effectiveness of original statement for additional five-year period from last date to which original filing was effective. 1977 Op. Att'y Gen. No. U77-56.
- Nonrecording insurance premiums, subject otherwise to rate approvals and regulations by Insurance Department, would be lawful after January 1, 1964, provided they do not exceed amount of recording fees set out in former subsection (5) of this section. 1963-65 Op. Att'y Gen. p. 335.
- 68A Am. Jur. 2d, Secured Transactions, §§ 310-314, 318, 405-419.
- 76 C.J.S., Records, § 4.
- Uniform Commercial Code (U.L.A.) § 9-515.
- 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.
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.
Total Results: 1
Court: Supreme Court of Georgia | Date Filed: 2004-11-23
Citation: 606 S.E.2d 849, 278 Ga. 788, 2004 Fulton County D. Rep. 3752, 2004 Ga. LEXIS 1044
Snippet: not, however, inform Barnes that under OCGA § 11-9-515, financing statements are only effective for five