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Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 2. EFFECTIVENESS OF SECURITY AGREEMENT; ATTACHMENT OF SECURITY INTEREST; RIGHTS OF PARTIES TO SECURITY AGREEMENT

11-9-206. Security interest arising in purchase or delivery of financial asset.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (a)

    Security interest when person buys through securities intermediary. A security interest in favor of a securities intermediary attaches to a person’s security entitlement if:#

    1. (1)

      The person buys a financial asset through the securities intermediary in a transaction in which the person is obligated to pay the purchase price to the securities intermediary at the time of the purchase; and#

    2. (2)

      The securities intermediary credits the financial asset to the buyer’s securities account before the buyer pays the securities intermediary.#

  2. (b)

    Security interest secures obligation to pay for financial asset. The security interest described in subsection (a) of this Code section secures the person’s obligation to pay for the financial asset.#

  3. (c)

    Security interest in payment against delivery transaction. A security interest in favor of a person that delivers a certificated security or other financial asset represented by a writing attaches to the security or other financial asset if:#

    1. (1)

      The security or other financial asset:#

      1. (A)

        In the ordinary course of business is transferred by delivery with any necessary indorsement or assignment; and#

      2. (B)

        Is delivered under an agreement between persons in the business of dealing with such securities or financial assets; and#

    2. (2)

      The agreement calls for delivery against payment.#

  4. (d)

    Security interest secures obligation to pay for delivery. The security interest described in subsection (c) of this Code section secures the obligation to make payment for the delivery.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 11-9-206, enacted by Ga. L. 2001, p. 362, § 1.

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, pages 766 to 767; merge action: carried; file SHA-256 ad397fccbf21.