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

O.C.G.A. § 11-9-608 (2019)

Application of proceeds of collection or enforcement; liability for deficiency and right to surplus

✓ 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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(a) Application of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply:

(1) A secured party shall apply or pay over for application the cash proceeds of collection or enforcement under Code Section 11-9-607 in the following order to:

(A) The reasonable expenses of collection and enforcement and, to the extent provided for by agreement and not prohibited by law, reasonable attorney’s fees and legal expenses incurred by the secured party;

(B) The satisfaction of obligations secured by the security interest or agricultural lien under which the collection or enforcement is made; and

(C) The satisfaction of obligations secured by any subordinate security interest in or other lien on the collateral subject to the security interest or agricultural lien under which the collection or enforcement is made if the secured party receives an authenticated demand for proceeds before distribution of the proceeds is completed;

(2) If requested by a secured party, a holder of a subordinate security interest or other lien shall furnish reasonable proof of the interest or lien within a reasonable time. Unless the holder complies, the secured party need not comply with the holder’s demand under subparagraph (C) of paragraph (1) of this subsection;

(3) A secured party need not apply or pay over for application noncash proceeds of collection and enforcement under Code Section 11-9-607 unless the failure to do so would be commercially unreasonable. A secured party that applies or pays over for application noncash proceeds shall do so in a commercially reasonable manner; and

(4) A secured party shall account to and pay a debtor for any surplus, and the obligor is liable for any deficiency.

(b) No surplus or deficiency in sales of certain rights to payment. If the underlying transaction is a sale of accounts, chattel paper, payment intangibles, or promissory notes, the debtor is not entitled to any surplus, and the obligor is not liable for any deficiency.

History

Code 1981, § 11-9-608, enacted by Ga. L. 2001, p. 362, § 1.

Annotations

Code Commission notes. Pursuant to Code Section 28-9-5, in

2001, a semicolon was substituted for a period at the end of paragraph (a)(2).

RESEARCH REFERENCES U.L.A. Uniform Commercial Code (U.L.A.) § 9608. ALR. Definition and Treatment of “Instru-

ments” Under Revised Article 9 of Uniform Commercial Code, 42 A.L.R.7th Art. 5.

Notes of Decisions
Cited in 4 cases (1 in the last 5 years), 2013–2025 · leading case: Gwinnett Cmty. Bank v. Arlington Capital, LLC, 757 S.E.2d 239 (Ga. Ct. App. 2014).
Sort: Relevance Newest Treatment
Gwinnett Cmty. Bank v. Arlington Capital, LLC, 757 S.E.2d 239 (Ga. Ct. App. 2014). · cites it 32× “2 Later, Arlington and Tucker moved for summary judgment on Counts I and II of GCB’s complaint on two grounds: (1) that the exchange of the Shiloh Woods Note and Deed constituted a sale of a promissory note for purposes of the UCC and, pursuant to OCGA §§ 11-9-608 (b) 3 and…”
Colonial Pac. Leasing Corp. v. N & N Partners, LLC, 981 F. Supp. 2d 1345 (N.D. Ga. 2013). · cites it 2× “O.C.G.A. § 11-9-608(a). If a debt remains, the creditor may pursue a deficiency action against the debtor and any guarantors.”
Gwinnett Cmty. Bank v. Arlington Capital, LLC (Ga. Ct. App. 2014). · cites it 28× “5 Later, Arlington and Tucker moved for summary judgment on Counts I and II of GCB’s complaint on two grounds: (1) that the exchange of the Shiloh Woods Note and Deed constituted a sale of a promissory note for purposes of the UCC and, pursuant to OCGA §§ 11-9-608 (b)3 and…”
SIS, LLC v. Orion Grp. Holdings, Inc. (S.D. Tex. 2025). “” See OCGA § 11-9-608(a)(1)(A) (“The secured party shall apply or pay.”
— 11-9-608(a) — 1 case
Colonial Pac. Leasing Corp. v. N & N Partners, LLC, 981 F. Supp. 2d 1345 (N.D. Ga. 2013). “O.C.G.A. § 11-9-608(a). If a debt remains, the creditor may pursue a deficiency action against the debtor and any guarantors.”
— 11-9-608(a)(1)(A) — 1 case
SIS, LLC v. Orion Grp. Holdings, Inc. (S.D. Tex. 2025). “” See OCGA § 11-9-608(a)(1)(A) (“The secured party shall apply or pay.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.