Georgia Commons

Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 6. DEFAULT

11-9-605. Unknown debtor or secondary obligor.

Active

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

  1. (a)

    In general: no duty owed by secured party. Except as provided in subsection (b) of this Code section, a secured party does not owe a duty based on its status as secured party:#

    1. (1)

      To a person that is a debtor or obligor, unless the secured party knows:#

      1. (A)

        That the person is a debtor or obligor;#

      2. (B)

        The identity of the person; and#

      3. (C)

        How to communicate with the person; or#

    2. (2)

      To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows:#

      1. (A)

        That the person is a debtor; and#

      2. (B)

        The identity of the person.#

  2. (b)

    Exception: secured party owes duty to debtor or obligor.#

    1. A secured party owes a duty based on its status as a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later:

    2. (1)

      The person is a debtor or obligor; and#

    3. (2)

      The secured party knows that the information in subparagraphs (a)(1)(A), (a)(1)(B), or (a)(1)(C) of this Code section relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.#

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, § 11-9-605, enacted by Ga. L. 2001, p. 362, § 1; Ga. L. 2024, p. 817, § 5-71/HB 1240, effective July 1, 2024.

Amendments

The 2024 amendment, effective July 1, 2024, designated the existing provisions of this Code section as subsection (a); substituted “In general: no duty owed by secured party. Except as provided in subsection (b) of this Code section, a secured party” for “A secured party” near the beginning of subsection (a); and added subsection (b).

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.”

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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 139 to 140; merge action: replaced; file SHA-256 df9393c4ba3b.

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