Accessions

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Secured Transactions
  5. Perfection and Priority
  6. Accessions

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  1. Creation of security interest in accession. A security interest may be created in an accession and continues in collateral that becomes an accession.
  2. Perfection of security interest. If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.
  3. Priority of security interest. Except as otherwise provided in subsection (d) of this Code section, the other provisions of this part determine the priority of a security interest in an accession.
  4. Compliance with certificate of title statute. A security interest in an accession is subordinate to a security interest in the whole which is perfected by compliance with the requirements of a certificate of title statute under subsection (b) of Code Section 11-9-311.
  5. Removal of accession after default. After default, subject to Part 6 of this article, a secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole.
  6. Reimbursement following removal. A secured party that removes an accession from other goods under subsection (e) of this Code section shall promptly reimburse any holder of a security interest or other lien on, or owner of, the whole or of the other goods, other than the debtor, for the cost of repair of any physical injury to the whole or the other goods. The secured party need not reimburse the holder or owner for any diminution in value of the whole or the other goods caused by the absence of the accession removed or by any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.

(Code 1981, §11-9-335, enacted by Ga. L. 2001, p. 362, § 1.)

Law reviews.

- For article discussing the resolution of conflicting claims to goods between an unsecured seller of goods and a creditor of a buyer claiming under an after-acquired property clause, see 28 Mercer L. Rev. 625 (1977). For article surveying developments in the Georgia torts law from mid-1980 through mid-1981, see 33 Mercer L. Rev. 247 (1981).

JUDICIAL DECISIONS

Editor's notes.

- In the light of the similarity of the provisions, decisions under former Article 9 are included in the annotations for this Code section. For a table of comparable provisions, see the table at the beginning of the Article.

Nature of accessions.

- Accessions are goods of such nature as to form "integral part" of whole good and are so attached to it, that they are one and the same thing under the accession rule. Glenn v. Trust Co., 152 Ga. App. 314, 262 S.E.2d 590 (1979); Stratton Indus., Inc. v. Northwest Ga. Bank, 191 Ga. App. 683, 382 S.E.2d 721 (1989) (decided under former Code Section11-9-314).

Lesser chattel must form such an integral part of greater chattel and must be so attached to it as to constitute one and the same thing in order to constitute an accession. Mixon v. Georgia Bank & Trust Co., 154 Ga. App. 32, 267 S.E.2d 483 (1980) (decided under former Code Section11-9-314).

Personalty annexed to realty may retain character as personalty.

- Personalty purchased under retail installment contract, which is to be attached to realty, may by specific agreement of the parties, retain the personalty classification for the property where it is the intent of the seller and the purchaser that the personalty is not to become a fixture, but an "accession." Babson Credit Plan, Inc. v. Cordele Prod. Credit Ass'n, 146 Ga. App. 266, 246 S.E.2d 354 (1978) (decided under former Code Section11-9-314).

Interests exceeding "accessions" contemplated by section.

- Since a security agreement endowed a loan company with a security interest broader than that created under former subsection (1) of this section, the company was obligated under federal law to reveal in its disclosure statement the extent to which its interests exceeded the scope of "accessions" contemplated by this statutory provision. Varner v. Century Fin. Co., 738 F.2d 1143 (11th Cir. 1984) (decided under former Code Section 11-9-314).

RESEARCH REFERENCES

Am. Jur. 2d.

- 68A Am. Jur. 2d, Secured Transactions, §§ 101, 102, 155 et seq., 607-614, 955-958.

C.J.S.

- 1 C.J.S., Accession, §§ 9, 10.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-335.

ALR.

- Accession to property which is the subject of a conditional sale or chattel mortgage, 68 A.L.R. 1242.


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