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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

11-9-209. Duties of secured party if account debtor has been notified of assignment.

Active

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

  1. (a)

    Applicability of Code section. Except as otherwise provided in subsection (c) of this Code section, this Code section applies if:#

    1. (1)

      There is no outstanding secured obligation; and#

    2. (2)

      The secured party is not committed to make advances, incur obligations, or otherwise give value.#

  2. (b)

    Duties of secured party after receiving demand from debtor. Within ten days after receiving a signed demand by the debtor, a secured party shall send to an account debtor that has received notification under subsection (a) of Code Section 11-9-406 or subsection (b) of Code Section 11-12-106 of an assignment to the secured party as assignee a signed record that releases the account debtor from any further obligation to the secured party.#

  3. (c)

    Inapplicability to sales. This Code section does not apply to an assignment constituting the sale of an account, chattel paper, or payment intangible.#

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, § 11-9-209, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2024, p. 817, § 5-50/HB 1240, effective July 1, 2024.

Amendments

The 2024 amendment, effective July 1, 2024, in the middle of subsection (b), substituted “a signed” for “an authenticated”, inserted “under subsection (a) of Code Section 11-9-406 or subsection (b) of Code Section 11-12-106”, and substituted “a signed” for “under subsection (a) of Code Section 11-9-406 an authenticated”.

Editor's notes

Ga. L. 2024, p. 817, § 1-1/HB 1240, not codified by the General Assembly, provides: “This Act shall be known and may be cited as the ‘Uniform Commercial Code Modernization Act of 2024.’” Ga. L. 2024, p. 817, § 1-2/HB 1240, not codified by the General Assembly, provides: “Nothing in this Act shall be construed to support, endorse, create, or implement a national digital currency.”

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)-pdf.pdf, Volume V9, 2022 edition, 2025 supplement, pages 99 to 100; merge action: replaced; file SHA-256 df9393c4ba3b.