O.C.G.A. § 40-3-59 (2019)

Annotations

JUDICIAL DECISIONS Security interests affected. - It is only the security interests created by purchasers at retail, or in the ordinary course of business, which come under the provisions of Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-1 et seq.) and which are affected by it. McDonald v. Peoples Auto. Loan & Fin. Corp., 115 Ga. App. 483, 154 S.E.2d 886, 1967 Ga. App. LEXIS 1142 (1967). Chapter inapplicable to automobile dealers. - Effect of Ga. L. 1962, p. 79, § 3 (see now O.C.G.A. § 40-3-59) 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). Inapplicable to buyer in ordinary course of trade. - Provision of Ga. L. 1962, p. 79, § 3 (see now O.C.G.A. § 40-3-59) regarding a buyer in the ordinary course of trade taking free of a security interest is applicable only in instances when the dealer’s title is not subject to certification under Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-1 et seq.). First Nat’l Bank & Trust Co. v. Smithloff, 119 Ga. App. 284, 167 S.E.2d 190, 1969 Ga. App. LEXIS 1076 (1969). Security interest perfected under motor vehicle or commercial provisions. - Security interest in a

motor vehicle may be perfected under Ga. L. 1961, p. 68 (see now O.C.G.A. § 40-3-1 et seq.) if created by other than a dealer or manufacturer, or under the Uniform Commercial Code (see now O.C.G.A. T. 11) if by a dealer or manufacturer. Guardian Disct. Co. v. Settles, 114 Ga. App. 418, 151 S.E.2d 530, 1966 Ga. App. LEXIS 787 (1966). Mobile home “on consignment” in retailer’s inventory. - When manufacturer retained certificate of origin for mobile home which was “on consignment” and not yet included in a retailer’s floor-plan arrangement, it was nonetheless in the retailer’s inventory and available for sale to the retailer’s retail customers, and the rights of the parties were determined under the Uniform Commercial Code, O.C.G.A. T. 11, rather than the Motor Vehicle Certificate of Title Act, O.C.G.A. § 40-3-1 et seq. GECC v. Catalina Homes, Inc., 178 Ga. App. 319, 342 S.E.2d 734, 1986 Ga. App. LEXIS 1646 (1986). Perfection of security interest under Uniform Commercial Code. - When there is vehicle floor-planning, perfection of security interest in inventory comes under the Uniform Commercial Code (see now O.C.G.A. T. 11), and priority is governed by statute. Rome Bank & Trust Co. v. Bradshaw, 143 Ga. App. 152, 237 S.E.2d 612, 1977 Ga. App. LEXIS 2221 (1977).

MOTOR VEHICLES & TRAFFIC