The existence of a security interest, agricultural lien, or authority given to a debtor to dispose of or use collateral, without more, does not subject a secured party to liability in contract or tort for the debtor’s acts or omissions.
O.C.G.A. § 11-9-402
Secured party not obligated on contract of debtor or in tort
Applied in 2 court decisions — leading case Jones v. Small Business Administration (In Re Cohutta Mills, Inc.) (1989)
Most recently applied in Jones v. Small Business Administration (In Re Cohutta Mills, Inc.) (December 1989)
Code 1981, § 11-9-402, enacted by Ga
Current official text: Official Code of Georgia Annotated (LexisNexis). Digitized from the Internet Archive scan of the OCGA. Reproduced from public-domain Georgia statutes; confirm against the official source for the current text. Not legal advice.