O.C.G.A. § 11-9-515 (2019)
Duration and effectiveness of financing statement; effect of lapsed financing statement; record of mortgage as financing statement
(a) Five-year effectiveness. Except as otherwise provided in subsection (d) of this Code section, a filed financing statement is effective for a period of five years after the date of filing or until the twentieth day after any earlier maturity date required to be specified on the filed financing statement. (b) Lapse and continuation of financing statement. The effectiveness of a filed financing statement lapses on the expiration of the period of its effectiveness unless before the lapse a continuation statement is filed pursuant to subsection (c) of this Code section. Upon lapse, a financing statement ceases to be effective and any security interest or agricultural lien that was perfected by the financing statement becomes unperfected, unless the security interest is perfected otherwise. If the security interest or agricultural lien becomes unperfected upon lapse, it is deemed never to have been perfected as against a purchaser of the collateral for value.
(c) When continuation statement may be filed. A continuation statement may be filed only within six months before the expiration of the five-year period specified in subsection (a) of this Code section or the occurrence of any earlier maturity date required to be specified on a filed financing statement. (d) Effect of filing continuation statement. Except as otherwise provided in Code Section 11-9-510, upon timely filing of a continuation statement, the effectiveness of the initial financing statement continues for a period of five years commencing on the day on which the financing statement would have become ineffective in the absence of the filing or, where both (1) the collateral described consists only of consumer goods as defined in paragraph (24) of subsection (a) of Code Section 11-9-102 and (2) the secured obligation is originally $5,000.00 or less, any earlier maturity date of the secured obligation specified on such continuation statement. Upon the expiration of the five-year period or the earlier occurrence of a required specified maturity date, the financing statement lapses in the same manner as provided in subsection (b) of this Code section, unless, before the lapse, another continuation statement is filed pursuant to subsection (c) of this Code section. Succeeding continuation statements may be filed in the same manner to continue the effectiveness of the initial financing statement. (e) Record of mortgage as financing statement. A record of a mortgage that is effective as a financing statement filed as a fixture filing under subsection (c) of Code Section 11-9-502 remains effective as a financing statement filed as a fixture filing until the mortgage is released or satisfied of record or its effectiveness otherwise terminates as to the real property.
History
Code 1981, § 11-9-515, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2013, p. 690, § 13/SB 185.
Annotations
Law reviews. 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 Con-
tinuation 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).
JUDICIAL DECISIONS Editor’s notes. - In light of the similarity of the statutory 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. Five-year period begins on day of filing. - 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 B.R. 532, 1980 Bankr. LEXIS 4518 (Bankr. M.D. Ga. 1980) (decided under former Code 1933, § 109A-9-403). Filing continuation statement. - 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 B.R. 815, 1989 U.S. Dist. LEXIS 14993 (N.D. Ga. 1989) (decided under former Code Section 11-9-403). Failure to file timely continuation statement. - 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. § 11-9515(b), and the buyer took free of the security interests under O.C.G.A. § 11-9317(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 Ga. App. LEXIS 229 (2015). Harvested peanut crops. - 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, 1989 U.S. Dist. LEXIS 15497 (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 B.R. 857, 1993 U.S. Dist. LEXIS 1829 (M.D. Ga. 1993) (decided under former Code Section 11-9-403). Effect of filings under prior law. - 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 B.R. 857, 1993 U.S. Dist. LEXIS 1829 (M.D. Ga. 1993) (decided under former Code Section 11-9403). Filing of continuation statements. - 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 B.R. 857, 1993 U.S. Dist. LEXIS 1829 (M.D. Ga. 1993) (decided under former Code Section 11-9403). 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 B.R. 771, 1997 U.S. Dist. LEXIS 12424 (N.D. Ga. 1997), aff’d, 152 F.3d 935, 1998 U.S. App. LEXIS 20421 (11th Cir. 1998) (decided under former Code Section 11-9403). Second financing statement considered back-up, not continuation or amendment of original. - 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 state-
ment was still effective, creditor’s first-in time priority status under the original statement was preserved. Giddens v. Pioneer Credit, 205 B.R. 349, 1996 Bankr. LEXIS 1739 (Bankr. M.D. Ga. 1996), amended, 205 B.R. 349 (Bankr. M.D. Ga. 1997) (decided under former Code Section 11-9-402).
OPINIONS OF THE ATTORNEY GENERAL Editor’s notes. - In light of the similarity of the statutory 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 (decided under former Article 9).
Nonrecording insurance premiums lawful if not exceeding recording fees. - 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 Ga. Op. Att’y Gen. 335 (decided under former Article 9).
RESEARCH REFERENCES Am. Jur. 2d. 68A Am. Jur. 2d, Secured Transactions, §§ 310-314, 318, 405-419. C.J.S. 76 C.J.S., Records, § 4. U.L.A. Uniform Commercial Code (U.L.A.) § 9515. ALR. Coverage of “nonrecording” or “nonfil-
ing” 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.