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Official Code of Georgia Annotated

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

11-9-622. Effect of acceptance of collateral.

Active

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

  1. (a)

    Effect of acceptance. A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures:#

    1. (1)

      Discharges the obligation to the extent consented to by the debtor;#

    2. (2)

      Transfers to the secured party all of a debtor’s rights in the collateral;#

    3. (3)

      Discharges the security interest or agricultural lien that is the subject of the debtor’s consent and any subordinate security interest or other subordinate lien; and#

    4. (4)

      Terminates any other subordinate interest.#

  2. (b)

    Discharge of subordinate interest notwithstanding noncompliance. A subordinate interest is discharged or terminated under subsection (a) of this Code section, even if the secured party fails to comply with this article.#

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, § 11-9-622, 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 939; merge action: carried; file SHA-256 ad397fccbf21.