Proceeds of Insurance Policy to Multiple Lienholders in Event of Total Loss of Vehicle

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Notwithstanding any other provision of law to the contrary, in any claim involving the total loss of a vehicle which is subject to more than one perfected security interest or lien as recorded on the title of the vehicle, the proceeds of the insurance policy shall be first applied to the debt owed to the first lienholder. In the event that there are proceeds remaining after satisfying the first lienholder, the proceeds shall be then applied to the debt owed to the second and subsequent lienholders in order of priority and any proceeds remaining after the satisfaction of all such recorded liens shall be paid to the insured. If the amount of debt secured by such security interests or liens or the seniority of such security interests or liens is in doubt, any remaining funds shall be deposited with the court and a complaint for interpleader shall be filed in accordance with Code Section 9-11-22.

(Code 1981, §40-3-61, enacted by Ga. L. 2002, p. 848, § 3.)

Cross references.

- Proceeds of insurance policy; limited access by insurers to records, § 33-34-9.

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 2002, a comma was deleted following "In the event" at the beginning of the second sentence.

ARTICLE 4 OFFENSES

Editor's notes.

- The former Article 4, relating to previously registered vehicles and consisting of Code Sections 40-3-70 through 40-3-76, was based on Ga. L. 1961, p. 68, §§ 38, 40-46; Ga. L. 1962, p. 79, §§ 19, 20; Ga. L. 1965, p. 304, § 11; Ga. L. 1980, p. 507, § 1; Ga. L. 1985, p. 149, § 40; and was repealed by Ga. L. 1990, p. 2048, § 3, effective July 1, 1990.

Ga. L. 1990, p. 2048, § 3, effective July 1, 1990, renumbered former Article 5 as present Article 4.

RESEARCH REFERENCES

Am. Jur. 2d.

- 7A Am. Jur. 2d, Automobiles and Highway Traffic, § 254 et seq.


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