O.C.G.A. § 40-3-58 (2019)
Exclusiveness of chapter
The method provided in this chapter of perfecting and giving notice of security interests and liens with respect to motor vehicles as to which certificates of title need be obtained under this chapter is exclusive, and such security interests and liens are exempt from the provisions of law which otherwise require or relate to the recording or filing of security
MOTOR VEHICLES & TRAFFIC
interests or liens, claims of lien executions, and other like instruments with respect to such vehicles.
History
Ga. L. 1961, p. 68, § 27; Ga. L. 1962, p. 79, § 17; Ga. L. 1990, p. 2048, § 3.
Annotations
JUDICIAL DECISIONS Chapter inapplicable to automobile dealers. - Effect of Ga. L. 1962, p. 79 § 17 (see now O.C.G.A. § 40-3-58) is that the only way to create security interests in automobiles is by the method provided in Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-1 et seq.), which does not apply to or affect dealers holding automobiles for sale. Sun Ins. Office, Ltd. v. First Nat’l Bank & Trust Co., 113 Ga. App. 782, 149 S.E.2d 753, 1966 Ga. App. LEXIS 1204, rev’d, 222 Ga. 559, 150 S.E.2d 803, 1966 Ga. LEXIS 553 (1966). Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-1 et seq.) is notice statute, having the effect, when complied with, of imputing constructive notice to all who may subsequently acquire an interest in or lien against the property. Franklin Fin. Co. v. Strother Ford, Inc., 110 Ga. App.
365, 138 S.E.2d 679, 1964 Ga. App. LEXIS 632 (1964). Actual notice sufficient. - Actual notice of the prior lien to one who subsequently purchases or acquires a security interest is sufficient to preserve the priority of the lien or of the title. Franklin Fin. Co. v. Strother Ford, Inc., 110 Ga. App. 365, 138 S.E.2d 679, 1964 Ga. App. LEXIS 632 (1964). After-acquired parts and repairs. - Lender’s properly perfected security interest in a vehicle extended to after-acquired parts and repairs, and was superior to a repair shop’s mechanic’s lien and claim for unjust enrichment regarding parts affixed to the vehicle. Barnes v. GMAC, 191 Ga. App. 201, 381 S.E.2d 146, 1989 Ga. App. LEXIS 497 (1989).
OPINIONS OF THE ATTORNEY GENERAL Used car dealers. - In order to perfect a dealer’s security interest in a vehicle, a used car dealer must follow the requirements specified in O.C.G.A. § 40-3-1 et seq.; the method for perfecting a security interest as described in those provisions is exclusive, and such security interests in motor vehicles as to which certificates of title must be obtained are exempt from the provisions of law which
otherwise require or relate to the recording or filing of security interests. 1990 Op. Att’y Gen. No. 90-8. Used car dealer who has a security interest in a vehicle may exercise all rights afforded to the dealer by the security agreement, including repossession, despite not having perfected the dealer’s security interest. 1990 Op. Att’y Gen. No. 90-8.
RESEARCH REFERENCES Am. Jur. 2d. 7A Am. Jur. 2d, Automobiles and Highway Traffic, § 35. C.J.S. 60 C.J.S., Motor Vehicles, §§ 41, 42. 72 C.J.S., Pledges, §§ 43, 44.
U.L.A. Uniform Motor Vehicle Certificate of Title and Anti-Theft Act (U.L.A.) § 25.