§ 11-9-605 — Unknown debtor or secondary obligor

(a) In general: no duty owed by secured party. Except as provided in subsection (b) of this Code section, a secured party does not owe a duty based on its status as secured party: (1) To a person that is a debtor or obligor, unless the secured party knows: (A) That the person is a debtor or obligor; (B) The identity of the person; and (C) How to communicate with the person; or (2) To a secured party or lienholder that has filed a financing statement against a person, unless the secured party knows: (A) That the person is a debtor; and (B) The identity of the person. (b) Exception: secured party owes duty to debtor or obligor. A secured party owes a duty based on its status as a secured party to a person if, at the time the secured party obtains control of collateral that is a controllable account, controllable electronic record, or controllable payment intangible or at the time the security interest attaches to the collateral, whichever is later: (1) The person is a debtor or obligor; and (2) The secured party knows that the information in subparagraphs (a)(1)(A), (a)(1)(B), or (a)(1)(C) of this Code section relating to the person is not provided by the collateral, a record attached to or logically associated with the collateral, or the system in which the collateral is recorded.

Legislative History

Amended by 2024 Ga. Laws 600,§ 5-71, eff. 7/1/2024. Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.