| Perfection
|| Possession and Sale || New Title
and Plates || Other Issues
|| Kelley Blue Book | |
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| LAWDOG™ Georgia Repossession |
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| Georgia Code |
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| Certificate of Title Required Owners
of vehicles required by law to be registered, for which no Georgia certificate of title
has been issued, may make application to the commissioner or to the tag agent in county
where owner resides, or if vehicle is owned by and used in connection with established
business, application may be made to commissioner or tag agent in county in which business
is located. When owner of vehicle is required to have certificate of title, until a
certificate of title application is made, the tag agent or commissioner may not register
or renew. See Georgia Code Section 40-3-20 |
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| Certificate May Be Held By Secured Party
The Certificate of title is mailed or delivered to holder of first lien named in
it. If there is no security interest holder or lienholder named, the certificate of title
is mailed or delivered directly to owner. The commissioner may by agreement deliver
electronic notice and recording of security interests. If the certificate of title is
mailed to a security interest holder or lienholder, such person shall notify by mail all
other lien or security interest holders that such person has received the certificate of
title. The notice shall inform the security interest holder or lienholder of the contents
and information reflected on such certificate of title. Such mailing or delivery shall be
within five days, exclusive of holidays, after the receipt of the certificate by the
holder of any security interest or lien. See Georgia Code Section 40-3-26 |
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| Custody of Certificate After Payment
The security interest holder or lienholder may retain custody of
certificate of title until claim has been satisfied. The security interest holder must
deliver the certificate to the next lienholder within ten days after interest has been
satisfied. If there are no other security interests, the certificate of title is delivered
to owner. See Georgia Code Section 40-3-26 |
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| Prohibited In Lease Purchase Agreement
A lease-purchase agreement may not contain provision requiring garnishment of wages or
power of attorney to confess a judgment, granting authorization to lessor or agent to
unlawfully enter upon the lessee's premises or to commit any breach of the peace in
repossession of goods, requiring lessee to waive any defense, counterclaim, or right of
action in collection of payments under the lease or in the repossession of goods,
requiring the lessee to agree not to assert a claim or defense arising out of the lease,
requiring any collection or repossession charges in excess of those allowable, or
providing that lessee cannot return the leased property to lessor at the end of any term.
See Georgia Code Section 10-1-684 |
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Georgia Uniform Commercial Code 11-1-101
The Motor Vehicle Certificate of Title Act, Georgia Code Section 40-3-1 |
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| Possession After Default Unless
otherwise agreed, and subject to compliance with other applicable laws, a secured party
has, on default, the right to take possession of collateral. In taking possession a
secured party may proceed without judicial process only if this can be done without breach
of the peace. If not, a legal action may proceed to recover possession. See Code of
Georgia Section 11-9-503,
a link to the Georgia Legislature. |
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| Right to Redeem Collateral
At any time before secured party has disposed of collateral or entered into contract for
disposition under Code Section 11-9-504 or before discharge under Code Section 11-9-505,
the debtor or any other secured party may, unless otherwise agreed in writing after
default, redeem the collateral by tendering fulfillment of all obligations secured by
collateral, expenses reasonably incurred by the secured party in retaking, holding, and
preparing collateral for disposition, arranging for sale, and to extent provided in
agreement and not prohibited by law, reasonable attorneys' fees and legal expenses. See
Georgia Code Section 11-9-506 |
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| Compulsory Sale If
debtor has paid 60 percent of the cash price in case of a purchase money security interest
in consumer goods or 60 percent of the loan in case of another security interest in
consumer goods, and has not signed after default a statement renouncing or modifying his
rights under this part a secured party who has taken possession of collateral must dispose
of it under Code Section 11-9-504, and if he fails to do so within 90 days after
possession, the debtor may recover certain damages. See Georgia Code Section 11-9-505 |
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| Acceptance of Collateral as Discharge
In cases other than consumer goods 60% cases, secured party in possession may, after
default, propose to retain the collateral in satisfaction of the obligation. Written
notice of must be sent to debtor if debtor has not signed, after default, a statement
renouncing or modifying rights. In the case of consumer goods no other notice need be
given, but additional notice to certain holders of subordinate liens. If secured party
receives objection in writing from a person entitled to receive notice within 21 days
after notice was sent, secured party must sell collateral under Code Section 11-9-504. If
no such written objection is received, secured party may retain collateral in satisfaction
of the debt. See Georgia Code Section 11-9-505 |
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| Sale and Application of Proceeds
A secured party after default may sell, lease, or otherwise dispose of collateral in its
then condition or following any commercially reasonable preparation or processing. Any
sale of goods is subject to Article 2 of the UCC on sales. Proceeds of sale must be
applied in order following to reasonable expenses of retaking, holding, preparing,
selling, or leasing, and, to extent provided for in agreement and not prohibited by law,
reasonable attorneys' fees and legal expenses incurred by secured party. Proceeds would
the be applied to satisfaction of debt secured by security interest under which sale is
made. See Georgia Code Section 11-9-504 |
| Subordinate Liens Remaining
proceeds would next be applied to satisfaction of debt secured by any subordinate security
interest in the collateral if written notification of demand is received before
distribution of proceeds is completed. If requested by the secured party, holder of a
subordinate security interest must seasonably furnish proof of interest, and unless he
does so, secured party need not comply with demand. See Georgia Code Section 11-9-504 |
| Accounting and Deficiency
If security interest secures debt, the secured party must account to debtor for any
surplus, and, unless otherwise agreed, debtor is liable for any deficiency. |
| Public or Private Sale After Notice
Disposition of collateral may be by public or private sale, and may be at any time and
place and on any terms, but every aspect including method, manner, time, place, and terms
must be commercially reasonable. Unless collateral is perishable, reasonable notice of
time and place of any public sale, or reasonable notice of time after which any private
sale is to be made, must be sent by secured party to debtor, if debtor has not signed,
after default, a statement renouncing or modifying his right to notice. In non-consumer
cases additional notice may be required for certain subordinate claims of interest in the
collateral. See Georgia Code Section 11-9-504 |
| Liability for Failure to Comply
If it is established that the secured party is not proceeding in accordance with
these provisions, disposition may be ordered or restrained on appropriate terms and
conditions. In addition, damages are provided in this section. The fact that a better
price could have been obtained by a sale at a different time or in a different method from
that selected by the secured party is not of itself sufficient to establish that the sale
was not made in a commercially reasonable manner. If the secured party either sells the
collateral in the usual manner in any recognized market therefor or if he sells at the
price current in such market at the time of his sale or if he has otherwise sold in
conformity with reasonable commercial practices among dealers in the type of property sold
he has sold in a commercially reasonable manner. See Georgia Code Section 11-9-507 |
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| Personal Property In Vehicle
Any person who lawfully repossesses a motor vehicle shall be an involuntary, gratuitous,
or naked depository of any personal property found in such motor vehicle and has a lien on
such property for any reasonable expenses incurred in storing such property or in giving
notice to such owner. See Georgia Code Section 44-14-411.1 Within
ten days of date of repossession, person repossessing vehicle must notify owner of the
intent to dispose of personal property. Notice must be actual notice, but may be by
personal service or by service by certified mail. If the personal property is not redeemed
within 30 days from the date of the first notice, a second notice must be sent in same
manner. If the personal property is not redeemed within 30 days from date of second
notice, personal property may be disposed of in manner most expeditious, without further
liability and proceeds are disbursed as provided in Code Section 44-14-412. See Georgia
Code Section 44-14-411.1 |
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| No Deficiency Without Notice
When a motor vehicle has been repossessed after default in accordance with Part 5
of Article 9 of the Uniform Commercial Code, the secured party may not recover a
deficiency against buyer unless, within ten days after repossession, he forwards by
registered or certified mail to address of buyer shown on contract or later designated by
buyer, a notice of the intention of secured party to pursue a deficiency claim against
buyer. The notice must also advise buyer of right of redemption, and right to demand a
public sale of repossessed vehicle. In event buyer exercises right to demand a public
sale, he must advise holder in writing of election by registered or certified mail,
addressed to holder at address from which holder's notice emanated, within ten days after
the posting of the original notice. With election by buyer, holder must dispose of
vehicle at a public sale as provided by law, in the state and county where original sale
took place, or state and county where vehicle was repossessed, or state and county
of buyer's residence, at holder's election. This provides cumulative additional
rights and remedies to the Uniform Commercial Code Provisions which must be fulfilled
before deficiency claim will lie against a buyer. See Georgia Code Section 10-1-36 |
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