Current through 2023-2024 Legislative Session Chapters 1-496, 504, 505, 514, 516-545, 549, 550, 566, 570, 571, 578, 580, 586, 590-592, 594, 595, 604, 609, 612, 696, 697
(a)General scope of article. Except as otherwise provided in subsections (c) and (d) of this Code section, this article applies to: (1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;(2) An agricultural lien;(3) A sale of accounts, chattel paper, payment intangibles, or promissory notes;(5) A security interest arising under Code Section 11-2-401, Code Section 11-2-505, subsection (3) of Code Section 11-2-711, or subsection (5) of Code Section 11-2A-508, as provided in Code Section 11-9-110; and(6) A security interest arising under Code Section 11-4-210 or 11-5-118.(b)Security interest in secured obligation. The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.(c)Extent to which article does not apply. This article does not apply to the extent that:(1) A statute, regulation, or treaty of the United States preempts this article;(2) Another statute of this state expressly governs the creation, perfection, or priority;(3) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or(4) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Code Section 11-5-114.(d)Inapplicability of article. This article does not apply to: (1) A landlord's lien, other than an agricultural lien;(2) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Code Section 11-9-333 applies with respect to priority of the lien;(3) An assignment of a claim for wages, salary, or other compensation of an employee;(4) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;(5) An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;(6) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;(7) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;(8) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but Code Sections 11-9-315 and 11-9-322 apply with respect to proceeds and priorities in proceeds;(9) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;(10) A right of recoupment or setoff, but:(A) Code Section 11-9-340 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts; and(B) Code Section 11-9-404 applies with respect to defenses or claims of an account debtor;(11) The creation or transfer of an interest in or lien on real property, including a lease or usufruct or rents thereunder, except to the extent that provision is made for: (A) Liens on real property in Code Sections 11-9-203 and 11-9-308;(B) Fixtures in Code Section 11-9-334;(C) Fixture filings in Code Sections 11-9-501, 11-9-502, 11-9-512, 11-9-516, and 11-9-519; and(D) Security agreements covering personal and real property in Code Section 11-9-604;(12) An assignment of a claim arising in tort, other than a commercial tort claim, but Code Sections 11-9-315 and 11-9-322 apply with respect to proceeds and priorities in proceeds;(13) An assignment of a deposit account in a consumer transaction, but Code Sections 11-9-315 and 11-9-322 apply with respect to proceeds and priorities in proceeds;(14) An assignment of a lottery prize payable by this state or any instrumentality of this state;(15) An assignment of a claim or right to receive payment as described in and to the extent limited by the provisions of Code Section 34-9-84 or by Article 4 of Chapter 12 of Title 51; or(16) A security interest created by or affecting property of this state or any governmental unit of this state in any public finance transaction, other than a security interest created by: (A) An authority activated under Chapter 62 of Title 36, the "Development Authorities Law"; or(B) A local authority having as its principal function the stimulation of industrial growth and the reduction of unemployment.Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.