Secured Transactions:

The State of Georgia generally adopts the provisions of the Uniform Commercial Code in secured transactions. (Section 11-9-101 et seq.)

A creditor generally is entitled to recover possession of collateral upon the default of a debtor on a secured transaction. In obtaining possession of collateral, a creditor may do so without judicial process if it can be done without breach of the peace or by judicial action. (Section 11-9-503.)   Under Rule 120-1-14-18 of the Administrative Rules and Regulations of the State of Georgia,  in a consumer transaction involving an amount of $3,000.00 or less, a creditor may not be permitted to take possession of collateral without judicial process unless such authorization is clearly, prominently, and conspicuously disclosed to the consumer immediately above the place for his signature on the loan document or as an addition to the "NOTICE TO CONSUMER" as defined in Rule 120-1-14-.08(3) of the Regulations.  Georgia's Administrative Rules and Regulations may be viewed from the web site of the State of Georgia.  Click here.

After a debtor's default, a secured creditor may sell, lease or otherwise dispose of the collateral in a commercially reasonable manner. (Section 11-9-504.) Any time before the disposition of the collateral, a debtor may have a right to redeem the collateral by tendering full payment of the obligation owed and all reasonable expenses incurred by the creditor. (Section 11-9-506.)

The disposition of the collateral may be conducted by public or private sale. Reasonable notice of the time and place of the sale is generally required to be given to other secured creditors and the debtor. (Section 11-9-504(3).) A creditor must account to the debtor any surplus, and unless otherwise agreed, the debtor may be liable for any deficiency. (Section 11-9-502(2).)

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