Official Code of Georgia Annotated

Title 18. DEBTOR AND CREDITOR · Chapter 2. DEBTOR AND CREDITOR RELATIONS · Article 3. PREFERENCES AND ASSIGNMENTS FOR BENEFIT OF CREDITORS

18-2-40. Right of debtor to prefer creditors.

Active

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

A debtor may prefer one creditor over another; and to that end he may rightfully give a lien by mortgage or other legal means, sell in payment of the debt, or transfer choses in action as collateral security, where the surplus in such cases is not reserved for the debtor’s own benefit.

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

Orig. Code 1863, § 1955; Code 1868, § 1943; Code 1873, § 1953; Code 1882, § 1953; Civil Code 1895, § 2697; Civil Code 1910, § 3230; Code 1933, § 28-301.

Law reviews

For note discussing assignments for benefit of creditors, see 12 Ga. L. Rev. 814 (1978). For article, “Preparing the Georgia Farmer (or Other Small Entrepreneur) for Bankruptcy,” see 22 Ga. St. B.J. 186 (1986).

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

Text read from t18-t19-(v16)-2022-pdf.pdf, Volume V16, 2022 edition, pages 33 to 34; merge action: carried; file SHA-256 eddc877da9f2.