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O.C.G.A. § 11-9-617 — Rights of transferee of collateral | Georgia Code
O.C.G.A. § 11-9-617 (2018) Copy Cite Official Site Syfertize CourtListener Scholar Amendments

TITLE 11 COMMERCIAL CODE

Section 9. Secured Transactions, 11-9-101 through 11-9-809.

ARTICLE 9 SECURED TRANSACTIONS

PART 1 DEFAULT AND ENFORCEMENT OF SECURITY INTEREST

11-9-617. Rights of transferee of collateral.

  1. Effects of disposition. A secured party's disposition of collateral after default:
    1. Transfers to a transferee for value all of the debtor's rights in the collateral;
    2. Discharges the security interest under which the disposition is made; and
    3. Discharges any subordinate security interest or other subordinate lien.
  2. Rights of good faith transferee. A transferee that acts in good faith takes free of the rights and interests described in subsection (a) of this Code section, even if the secured party fails to comply with this article or the requirements of any judicial proceeding.
  3. Rights of other transferee. If a transferee does not take free of the rights and interests described in subsection (a) of this Code section, the transferee takes the collateral subject to:
    1. The debtor's rights in the collateral;
    2. The security interest or agricultural lien under which the disposition is made; and
    3. Any other security interest or other lien.

(Code 1981, §11-9-617, enacted by Ga. L. 2001, p. 362, § 1.)

JUDICIAL DECISIONS

Termination of debtor's ownership interest.

- Where a debtor's vehicle was part of the debtor's bankruptcy estate under Georgia law, return of the same was proper despite the creditor's objections, as ownership remained with the debtor until the creditor disposed of or elected to retain the collateral in accordance with the procedures of the Georgia Uniform Commercial Code. Motors Acceptance Corp. v. Rozier, 278 Ga. 52, 597 S.E.2d 367 (2004).

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-617.

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This Georgia Code resource is curated by Graham W. Syfert, Esq., a personal injury and workers' compensation attorney admitted in Georgia (State Bar of Georgia No. 881027, since 2006) and Florida. For legal consultation, call 904-383-7448.