Official Code of Georgia Annotated
Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 3. PERFECTION AND PRIORITY
11-9-321. Licensee of general intangible and lessee of goods in ordinary course of business.
Current through: Including Acts of the 2025 Regular Session of the General Assembly.
- (a)
“Licensee in ordinary course of business.” As used in this Code section, the term “licensee in ordinary course of business” means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible, and in the ordinary course from a person in the business of licensing general intangibles of that kind. A person becomes a licensee in the ordinary course if the license to the person comports with the usual or customary practices in the kind of business in which the licensor is engaged or with the licensor’s own usual or customary practices.#
- (b)
Rights of licensee in ordinary course of business. A licensee in ordinary course of business takes its rights under a nonexclusive license free of a security interest in the general intangible created by the licensor, even if the security interest is perfected and the licensee knows of its existence.#
- (c)
Rights of lessee in ordinary course of business. A lessee in ordinary course of business takes its leasehold interest free of a security interest in the goods created by the lessor, even if the security interest is perfected and the lessee knows of its existence.#
History
Code 1981, § 11-9-321, 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 810 to 811; merge action: carried; file SHA-256 ad397fccbf21.