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Official Code of Georgia Annotated

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

11-9-617. Rights of transferee of collateral.

Active

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

  1. (a)

    Effects of disposition. A secured party’s disposition of collateral after default:#

    1. (1)

      Transfers to a transferee for value all of the debtor’s rights in the collateral;#

    2. (2)

      Discharges the security interest under which the disposition is made; and#

    3. (3)

      Discharges any subordinate security interest or other subordinate lien.#

  2. (b)

    Rights of good faith transferee. A transferee that acts in good faith takes free of the rights and interests described in subsection (a) of this Code section, even if the secured party fails to comply with this article or the requirements of any judicial proceeding.#

  3. (c)

    Rights of other transferee. If a transferee does not take free of the rights and interests described in subsection (a) of this Code section, the transferee takes the collateral subject to:#

    1. (1)

      The debtor’s rights in the collateral;#

    2. (2)

      The security interest or agricultural lien under which the disposition is made; and#

    3. (3)

      Any other security interest or other lien.#

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, § 11-9-617, 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, page 932; merge action: carried; file SHA-256 ad397fccbf21.