Title 11, Chapter 9, Section 102
( 11-9-102)
Definitions and index of definitions. (a) Article 9 definitions. As used in this article, the term: (1) "Accession" means goods that are physically united with other
goods in such a manner that the identity of the original goods is
not lost. (2) "Account," except as used in "account for," means a right to
payment of a monetary obligation, whether or not earned by
performance, (i) for property that has been or is to be sold,
leased, licensed, assigned, or otherwise disposed of, (ii) for
services rendered or to be rendered, (iii) for a policy of
insurance issued or to be issued, (iv) for a secondary obligation
incurred or to be incurred, (v) for energy provided or to be
provided, (vi) for the use or hire of a vessel under a charter or
other contract, (vii) arising out of the use of a credit or charge
card or information contained on or for use with the card, or
(viii) as winnings in a lottery or other game of chance operated
or sponsored by a state, governmental unit of a state, or person
licensed or authorized to operate the game by a state or
governmental unit of a state. The term includes health care
insurance receivables. The term does not include (i) rights to
payment evidenced by chattel paper or an instrument, (ii)
commercial tort claims, (iii) deposit accounts, (iv) investment
property, (v) letter of credit rights or letters of credit, or
(vi) rights to payment for money or funds advanced or sold, other
than rights arising out of the use of a credit or charge card or
information contained on or for use with the card. (3) "Account debtor" means a person obligated on an account,
chattel paper, or general intangible. The term does not include
persons obligated to pay a negotiable instrument, even if the
instrument constitutes part of chattel paper. (4) "Accounting," except as used in "accounting for," means a
record: (A) Authenticated by a secured party; (B) Indicating the aggregate unpaid secured obligations as of a
date not more than 35 days earlier or 35 days later than the
date of the record; and (C) Identifying the components of the obligations in reasonable
detail. (5) "Agricultural lien" means an interest, other than a security
interest, in farm products: (A) Which secures payment or performance of an obligation for: (i) Goods or services furnished in connection with a debtor's
farming operation; or (ii) Rent on real property leased by a debtor in connection
with its farming operation; (B) Which is created by statute in favor of a person that:
(i) In the ordinary course of its business furnished goods or
services to a debtor in connection with a debtor's farming
operation; or (ii) Leased real property to a debtor in connection with the
debtor's farming operation; and (C) Whose effectiveness does not depend on the person's
possession of the personal property. (6) "As-extracted collateral" means: (A) Oil, gas, or other minerals that are subject to a security
interest that: (i) Is created by a debtor having an interest in the minerals
before extraction; and (ii) Attaches to the minerals as extracted; or (B) Accounts arising out of the sale at the wellhead or minehead
of oil, gas, or other minerals in which the debtor had an
interest before extraction. (7) "Authenticate" means: (A) To sign; or (B) To execute or otherwise adopt a symbol, or encrypt or
similarly process a record in whole or in part, with the present
intent of the authenticating person to identify the person and
adopt or accept a record. (8) "Authority" means the Georgia Superior Court Clerks'
Cooperative Authority. (9) "Bank" means an organization that is engaged in the business
of banking. The term includes savings banks, savings and loan
associations, credit unions, and trust companies. (10) "Cash proceeds" means proceeds that are money, checks,
deposit accounts, or the like. (11) "Certificate of title" means a certificate of title with
respect to which a statute provides for the security interest in
question to be indicated on the certificate as a condition or
result of the security interest's obtaining priority over the
rights of a lien creditor with respect to the collateral. (12) "Chattel paper" means a record or records that evidence both
a monetary obligation and a security interest in specific goods, a
security interest in specific goods and software used in the
goods, a lease of specific goods, or a lease of specific goods and
license of software used in the goods. As used in this paragraph,
"monetary obligation" means a monetary obligation secured by the
goods or owed under a lease of the goods and includes a monetary
obligation with respect to software used in the goods. The term
does not include: (A) Charters or other contracts involving the use or hire of a
vessel; or (B) Records that evidence a right to payment arising out of the
use of a credit or charge card or information contained on or
for use with the card. If a transaction is evidenced by records that include an
instrument or series of instruments, the group of records taken
together constitutes chattel paper. (13) "Collateral" means the property subject to a security
interest or agricultural lien. The term includes: (A) Proceeds to which a security interest attaches; (B) Accounts, chattel paper, payment intangibles, and promissory
notes that have been sold; and (C) Goods that are the subject of a consignment. (14) "Commercial tort claim" means a claim arising in tort with
respect to which: (A) The claimant is an organization; or (B) The claimant is an individual and the claim: (i) Arose in the course of the claimant's business or
profession; and (ii) Does not include damages arising out of personal injury
to or the death of an individual. (15) "Commodity account" means an account maintained by a
commodity intermediary in which a commodity contract is carried
for a commodity customer. (16) "Commodity contract" means a commodity futures contract, an
option on a commodity futures contract, a commodity option, or
another contract if the contract or option is: (A) Traded on or subject to the rules of a board of trade that
has been designated as a contract market for such a contract
pursuant to federal commodities laws; or (B) Traded on a foreign commodity board of trade, exchange, or
market and is carried on the books of a commodity intermediary
for a commodity customer. (17) "Commodity customer" means a person for which a commodity
intermediary carries a commodity contract on its books. (18) "Commodity intermediary" means a person that: (A) Is registered as a futures commission merchant under federal
commodities law; or (B) In the ordinary course of its business provides clearance or
settlement services for a board of trade that has been
designated as a contract market pursuant to federal commodities
law. (19) "Communicate" means: (A) To send a written or other tangible record; (B) To transmit a record by any means agreed upon by the persons
sending and receiving the record; or (C) In the case of transmission of a record to or by a filing
office or the authority, to transmit a record by any means
prescribed by filing office rule. (20) "Consignee" means a merchant to which goods are delivered in
a consignment. (21) "Consignment" means a transaction, regardless of its form, in
which a person delivers goods to a merchant for the purpose of
sale and: (A) The merchant: (i) Deals in goods of that kind under a name other than the
name of the person making delivery; (ii) Is not an auctioneer; and (iii) Is not generally known by its creditors to be
substantially engaged in selling the goods of others; (B) With respect to each delivery, the aggregate value of the
goods is $1,000.00 or more at the time of delivery; (C) The goods are not consumer goods immediately before
delivery; and (D) The transaction does not create a security interest that
secures an obligation. (22) "Consignor" means a person that delivers goods to a consignee
in a consignment. (23) "Consumer debtor" means a debtor in a consumer transaction. (24) "Consumer goods" means goods that are used or bought for use
primarily for personal, family, or household purposes. (25) "Consumer goods transaction" means a consumer transaction in
which: (A) An individual incurs an obligation primarily for personal,
family, or household purposes; and (B) A security interest in consumer goods secures the
obligation. (26) "Consumer obligor" means an obligor who is an individual and
who incurred the obligation as part of a transaction entered into
primarily for personal, family, or household purposes.
(27) "Consumer transaction" means a transaction in which (i) an
individual incurs an obligation primarily for personal, family, or
household purposes, (ii) a security interest secures the
obligation, and (iii) the collateral is held or acquired primarily
for personal, family, or household purposes. The term includes
consumer goods transactions. (28) "Continuation statement" means an amendment of a financing
statement which: (A) Identifies, by its file number, the initial financing
statement to which it relates; and (B) Indicates that it is a continuation statement for, or that
it is filed to continue the effectiveness of, the identified
financing statement. (29) "Debtor" means: (A) A person having an interest, other than a security interest
or other lien, in the collateral, whether or not the person is
an obligor; (B) A seller of accounts, chattel paper, payment intangibles, or
promissory notes; or (C) A consignee. (30) "Deposit account" means a demand, time, savings, passbook, or
similar account maintained with a bank. The term does not include
investment property or accounts evidenced by an instrument. (31) "Document" means a document of title or a receipt of the type described in subsection (2) of Code Section 11-7-201. (32) "Electronic chattel paper" means chattel paper evidenced by a
record or records consisting of information stored in an
electronic medium. (33) "Encumbrance" means a right, other than an ownership
interest, in real property. The term includes mortgages and other
liens on real property. (34) "Equipment" means goods other than inventory, farm products,
or consumer goods. (35) "Farm products" means goods, other than standing timber, with
respect to which the debtor is engaged in a farming operation and
which are: (A) Crops grown, growing, or to be grown, including: (i) Crops produced on trees, vines, and bushes; and (ii) Aquatic goods produced in aquacultural operations; (B) Livestock, born or unborn, including aquatic goods produced
in aquacultural operations; (C) Supplies used or produced in a farming operation; or
(D) Products of crops or livestock in their unmanufactured
states. (36) "Farming operation" means raising, cultivating, propagating,
fattening, grazing, or any other farming, livestock, or
aquacultural operation. (37) "File number" means the number assigned to an initial financing statement pursuant to subsection (a) of Code Section 11-9-519. (38) "Filing office" means an office designated in Code Section 11-9-501 as the place to file a financing statement. (39) "Filing office rule" means a rule adopted pursuant to Code Section 11-9-526. (40) "Financing statement" means a record or records composed of
an initial financing statement and any filed record relating to
the initial financing statement. (41) "Fixture filing" means the filing of a financing statement covering goods that are or are to become fixtures and satisfying subsections (a) and (b) of Code Section 11-9-502. The term includes the filing of a financing statement covering goods of a transmitting utility which are or are to become fixtures. (42) "Fixtures" means goods that have become so related to
particular real property that an interest in them arises under
real property law. (43) "General intangible" means any personal property, including
things in action, other than accounts, chattel paper, commercial
tort claims, deposit accounts, documents, goods, instruments,
investment property, letter of credit rights, letters of credit,
money, and oil, gas, or other minerals before extraction. The
term includes payment intangibles and software. (44) "Good faith" means honesty in fact and the observance of
reasonable commercial standards of fair dealing. (45) "Goods" means all things that are movable when a security
interest attaches. The term includes (i) fixtures, (ii) standing
timber that is to be cut and removed under a conveyance or
contract for sale, (iii) the unborn young of animals, and (iv)
crops grown, growing, or to be grown, even if the crops are
produced on trees, vines, or bushes. The term also includes a
computer program embedded in goods and any supporting information
provided in connection with a transaction relating to the program
if (i) the program is associated with the goods in such a manner
that it customarily is considered part of the goods, or (ii) by
becoming the owner of the goods, a person acquires a right to use
the program in connection with the goods. The term does not
include a computer program embedded in goods that consist solely
of the medium in which the program is embedded. The term also
does not include accounts, chattel paper, commercial tort claims,
deposit accounts, documents, general intangibles, instruments,
investment property, letter of credit rights, letters of credit,
money, or oil, gas, or other minerals before extraction.
(46) "Governmental unit" means a subdivision, agency, department,
county, parish, municipality, or other unit of the government of
the United States, a state, or a foreign country. The term
includes an organization having a separate corporate existence if
the organization is eligible to issue debt on which interest is
exempt from income taxation under the laws of the United States. (47) "Health care insurance receivable" means an interest in or
claim under a policy of insurance which is a right to payment of a
monetary obligation for health care goods or services provided. (48) "Instrument" means a negotiable instrument or any other
writing that evidences a right to the payment of a monetary
obligation, is not itself a security agreement or lease, and is of
a type that in ordinary course of business is transferred by
delivery with any necessary indorsement or assignment. The term
does not include (i) investment property, (ii) letters of credit,
or (iii) writings that evidence a right to payment arising out of
the use of a credit or charge card or information contained on or
for use with the card. (49) "Inventory" means goods, other than farm products, which: (A) Are leased by a person as lessor; (B) Are held by a person for sale or lease or to be furnished
under a contract of service; (C) Are furnished by a person under a contract of service; or (D) Consist of raw materials, work in process, or materials used
or consumed in a business. (50) "Investment property" means a security, whether certificated
or uncertificated, security entitlement, securities account,
commodity contract, or commodity account. (51) "Jurisdiction of organization," with respect to a registered
organization, means the jurisdiction under whose law the
organization is organized. (52) "Letter of credit right" means a right to payment or
performance under a letter of credit, whether or not the
beneficiary has demanded or is at the time entitled to demand
payment or performance. The term does not include the right of a
beneficiary to demand payment or performance under a letter of
credit. (53) "Lien creditor" means: (A) A creditor that has acquired a lien on the property involved
by attachment, levy, or the like; (B) An assignee for benefit of creditors from the time of
assignment; (C) A trustee in bankruptcy from the date of the filing of the
petition; or (D) A receiver in equity from the time of appointment.
(54) "Mortgage" means a consensual interest in real property,
including fixtures, which secures payment or performance of an
obligation. The term includes a deed to secure debt. (55) "New debtor" means a person that becomes bound as debtor under subsection (d) of Code Section 11-9-203 by a security agreement previously entered into by another person. (56) "New value" means (i) money, (ii) money's worth in property,
services, or new credit, or (iii) release by a transferee of an
interest in property previously transferred to the transferee.
The term does not include an obligation substituted for another
obligation. (57) "Noncash proceeds" means proceeds other than cash proceeds. (58) "Obligor" means a person that, with respect to an obligation
secured by a security interest in or an agricultural lien on the
collateral, (i) owes payment or other performance of the
obligation, (ii) has provided property other than the collateral
to secure payment or other performance of the obligation, or (iii)
is otherwise accountable in whole or in part for payment or other
performance of the obligation. The term does not include issuers
or nominated persons under a letter of credit. (59) "Original debtor," except as used in subsection (c) of Code Section 11-9-310, means a person that, as debtor, entered into a security agreement to which a new debtor has become bound under subsection (d) of Code Section 11-9-203. (60) "Payment intangible" means a general intangible under which
the account debtor's principal obligation is a monetary
obligation. (61) "Person related to," with respect to an individual, means: (A) The spouse of the individual; (B) A brother, brother-in-law, sister, or sister-in-law of the
individual; (C) An ancestor or lineal descendant of the individual or the
individual's spouse; or (D) Any other relative, by blood or marriage, of the individual
or the individual's spouse who shares the same home with the
individual. (62) "Person related to," with respect to an organization, means: (A) A person directly or indirectly controlling, controlled by,
or under common control with the organization; (B) An officer or director of, or a person performing similar
functions with respect to, the organization; (C) An officer or director of, or a person performing similar
functions with respect to, a person described in subparagraph
(A) of this paragraph;
(D) The spouse of an individual described in subparagraph (A),
(B), or (C) of this paragraph; or (E) An individual who is related by blood or marriage to an
individual described in subparagraph (A), (B), (C), or (D) of
this paragraph and shares the same home with the individual. (63) "Proceeds," except as used in subsection (d) of Code Section 11-9-609, means the following property: (A) Whatever is acquired upon the sale, lease, license,
exchange, or other disposition of collateral; (B) Whatever is collected on, or distributed on account of,
collateral; (C) Rights arising out of collateral; (D) To the extent of the value of collateral, claims arising out
of the loss, nonconformity, or interference with the use of,
defects or infringement of rights in, or damage to the
collateral; or (E) To the extent of the value of collateral and to the extent
payable to the debtor or the secured party, insurance payable by
reason of the loss or nonconformity of, defects or infringement
of rights in, or damage to the collateral. (64) "Promissory note" means an instrument that evidences a
promise to pay a monetary obligation, does not evidence an order
to pay, and does not contain an acknowledgment by a bank that the
bank has received for deposit a sum of money or funds. (65) "Proposal" means a record authenticated by a secured party which includes the terms on which the secured party is willing to accept collateral in full or partial satisfaction of the obligation it secures pursuant to Code Sections 11-9-620, 11-9-621, and 11-9-622. (66) "Public finance transaction" means a secured transaction in
connection with which: (A) Debt securities are issued; (B) All or a portion of the securities issued have an initial
stated maturity of at least five years; and (C) The debtor, obligor, secured party, account debtor or other
person obligated on collateral, assignor or assignee of a
secured obligation, or assignor or assignee of a security
interest is a state or a governmental unit of a state. (67) "Pursuant to commitment," with respect to an advance made or
other value given by a secured party, means pursuant to the
secured party's obligation, whether or not a subsequent event of
default or other event not within the secured party's control has
relieved or may relieve the secured party from its obligation. (68) "Record," except as used in "for record," "of record,"
"record or legal title," and "record owner," means information
that is inscribed on a tangible medium or which is stored in an
electronic or other medium and is retrievable in perceivable form. (69) "Registered organization" means an organization organized
solely under the law of a single state or the United States and as
to which the state or the United States must maintain a public
record showing the organization to have been organized. (70) "Secondary obligor" means an obligor to the extent that: (A) The obligor's obligation is secondary; or (B) The obligor has a right of recourse with respect to an
obligation secured by collateral against the debtor, another
obligor, or property of either. (71) "Secured party" means: (A) A person in whose favor a security interest is created or
provided for under a security agreement, whether or not any
obligation to be secured is outstanding; (B) A person that holds an agricultural lien; (C) A consignor; (D) A person to which accounts, chattel paper, payment
intangibles, or promissory notes have been sold; (E) A trustee, indenture trustee, agent, collateral agent, or
other representative in whose favor a security interest or
agricultural lien is created or provided for; or (F) A person that holds a security interest arising under Code Section 11-2-401, 11-2-505, or subsection (3) of Code Section 11-2-711, subsection (5) of Code Section 11-2A-508, Code Section 11-4-210, or Code Section 11-5-118. (72) "Security agreement" means an agreement that creates or
provides for a security interest. (73) "Send," in connection with a record or notification, means: (A) To deposit in the mail, deliver for transmission, or
transmit by any other usual means of communication, with postage
or cost of transmission provided for, addressed to any address
reasonable under the circumstances; or (B) To cause the record or notification to be received within
the time that it would have been received if properly sent under
subparagraph (A) of this paragraph. (74) "Software" means a computer program and any supporting
information provided in connection with a transaction relating to
the program. The term does not include a computer program that is
included in the definition of goods. (75) "State" means a state of the United States, the District of
Columbia, Puerto Rico, the United States Virgin Islands, or any
territory or insular possession subject to the jurisdiction of the
United States. (76) "Supporting obligation" means a letter of credit right or
secondary obligation that supports the payment or performance of
an account, chattel paper, a document, a general intangible, an
instrument, or investment property. (77) "Tangible chattel paper" means chattel paper evidenced by a
record or records consisting of information that is inscribed on a
tangible medium. (78) "Termination statement" means an amendment of a financing
statement which: (A) Identifies, by its file number, the initial financing
statement to which it relates; and (B) Indicates either that it is a termination statement or that
the identified financing statement is no longer effective. (79) "Transmitting utility" means a person primarily engaged in
the business of: (A) Operating a railroad, subway, street railway, or trolley
bus; (B) Transmitting communications electrically,
electromagnetically, or by light; (C) Transmitting goods by pipeline or sewer; or (D) Transmitting or producing and transmitting electricity,
steam, gas, or water. (b) Definitions in other articles. Other definitions applying to
this article and the Code sections in which they appear are: "Applicant." Code Section 11-5-102. "Beneficiary." Code Section 11-5-102. "Broker." Code Section 11-8-102. "Certificated security." Code Section 11-8-102. "Check." Code Section 11-3-104. "Clearing corporation." Code Section 11-8-102. "Contract for sale." Code Section 11-2-106. "Customer." Code Section 11-4-104. "Entitlement holder." Code Section 11-8-102. "Financial asset." Code Section 11-8-102. "Holder in due course." Code Section 11-3-302. "Issuer" (with respect to a letter of credit or letter of credit right). Code Section 11-5-102. "Issuer" (with respect to a security). Code Section 11-8-201. "Lease." Code Section 11-2A-103. "Lease agreement." Code Section 11-2A-103. "Lease contract." Code Section 11-2A-103. "Leasehold interest." Code Section 11-2A-103. "Lessee." Code Section 11-2A-103. "Lessee in ordinary course of business." Code Section 11-2A-103. "Lessor." Code Section 11-2A-103. "Lessor's residual interest." Code Section 11-2A-103. "Letter of credit." Code Section 11-5-102. "Merchant." Code Section 11-2-104. "Negotiable instrument." Code Section 11-3-104. "Nominated person." Code Section 11-5-102. "Note." Code Section 11-3-104. "Proceeds of a letter of credit." Code Section 11-5-114. "Prove." Code Section 11-3-103. "Sale." Code Section 11-2-106. "Securities account." Code Section 11-8-501. "Securities intermediary." Code Section 11-8-102. "Security." Code Section 11-8-102. "Security certificate." Code Section 11-8-102. "Security entitlement." Code Section 11-8-102. "Uncertificated security." Code Section 11-8-102. (c) Article 1 definitions and principles. Article 1 of this title
contains general definitions and principles of construction and
interpretation applicable throughout this article. |