---
title: O.C.G.A. § 44-14-1. Operation of “open-end” clauses; limited to ex contractu obligations between parties.
collection: code
id: 44-14-1
cite_as: O.C.G.A. § 44-14-1 (2025)
canonical_url: https://georgiacommons.org/code/44-14-1
md_url: https://georgiacommons.org/code/44-14-1.md
text_url: https://georgiacommons.org/code/44-14-1/text
source_url: https://www.legis.ga.gov/api/document/docs/default-source/joint-features-document-library/t44-ch8-15-(v32)-2022-pdf.pdf?sfvrsn=9e9e06de_0#page=416
date: 2025
status: active
corpus_version: 2025-supplement-89aa39ab3c68
license: CC0-1.0
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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index: https://georgiacommons.org/code/index.md
version: the only printed version
in_force: true
current_through: Including Acts of the 2025 Regular Session of the General Assembly
heading_path: PROPERTY / MORTGAGES, CONVEYANCES TO SECURE DEBT, AND LIENS / IN GENERAL
---

# O.C.G.A. § 44-14-1. Operation of “open-end” clauses; limited to ex contractu obligations between parties.

(a) As used in this Code section, the term “original party” means, without limitation, any bank, trust company, or other corporation into which the grantee of any real estate mortgage or deed conveying realty as security for a debt shall be merged or consolidated. In addition to the foregoing, the term “original party,” as used in this Code section, shall also include, without limitation, any bank, trust company, or other corporation, whether organized and existing under the laws of the United States or this state, into which the grantee of any real estate mortgage or deed conveying realty as security for a debt shall be converted.

(b) Except as provided in subsection (c) of this Code section, the operation of “open-end” clauses contained in real estate mortgages or deeds conveying realty as security for a debt, which clauses provide that, in addition to securing the debt named or described in the instrument, such instruments or the property thereby conveyed shall also secure any other debt or obligation that may be or become owing by the mortgagor or grantor, is limited to other debts or obligations arising ex contractu, as distinguished from those arising ex delicto, between the original parties to the security instrument.

(c) A transferee or assignee of an original party to a home equity line of credit agreement or contract who makes additional advances or disbursements on a home equity line of credit shall have the benefit of the security under the deed if the disbursements, made after the assignment, were authorized by the original parties to the home equity line of credit agreement or contract.

## History

Ga. L. 1958, p. 655, § 1; Ga. L. 1978, p. 1705, § 4; Ga. L. 1980, p. 1550, § 1; Ga. L. 1980, p. 1765, § 1; Ga. L. 1997, p. 712, § 1; Ga. L. 1998, p. 128, § 44.

## Cross References

Rules of construction to promote purposes and policies, § 11-1-103.

Strict construction of powers of sale in deeds of trust, mortgages, and other instruments, § 23-2-114.

## Editor's Notes

Ga. L. 1962, p. 156, § 1, provides that any provision of Code Sections 44-14-1, 44-14-2, 44-14-4, 44-14-7 through 44-14-12, 44-14-100, and 44-14-160, and Arts. 2 and 3, Ch. 14, of this title which conflicts with T. 11 shall yield to and be superseded by T. 11. See Code Section 11-10-103.

## Law Reviews

For note discussing how an open-end or dragnet clause within a deed to secure debt ensnares subsequent purchasers of real property, in light of Commercial Bank v. Readd, 240 Ga. 519, 242 S.E.2d 25 (1978), see 30 Mercer L. Rev. 363 (1978).