Section 11-9-109. Scope

   (a)  General scope of article. Except as otherwise provided in subsections (c) and (d) of this Code section, this article applies to:

   (1) A transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract;

   (2) An agricultural lien;

   (3) A sale of accounts, chattel paper, payment intangibles, or promissory notes;

   (4) A consignment;

   (5) A security interest arising under Code Section 11-2-401, Code Section 11-2-505, subsection (3) of Code Section 11-2-711, or subsection (5) of Code Section 11-2A-508, as provided in Code Section 11-9-110; and

   (6) A security interest arising under Code Section 11-4-210 or 11-5-118.

(b)  Security interest in secured obligation. The application of this article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this article does not apply.

(c)  Extent to which article does not apply. This article does not apply to the extent that:

   (1) A statute, regulation, or treaty of the United States preempts this article;

   (2) Another statute of this state expressly governs the creation, perfection, or priority;

   (3) A statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or

   (4) The rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under Code Section 11-5-114.

(d)  Inapplicability of article. This article does not apply to:

   (1) A landlord's lien, other than an agricultural lien;

   (2) A lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but Code Section 11-9-333 applies with respect to priority of the lien;

   (3) An assignment of a claim for wages, salary, or other compensation of an employee;

   (4) A sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;

   (5) An assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;

   (6) An assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;

   (7) An assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;

   (8) A transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but Code Sections 11-9-315 and 11-9-322 apply with respect to proceeds and priorities in proceeds;

   (9) An assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;

   (10) A right of recoupment or setoff, but:

      (A) Code Section 11-9-340 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts; and

      (B) Code Section 11-9-404 applies with respect to defenses or claims of an account debtor;

   (11) The creation or transfer of an interest in or lien on real property, including a lease or usufruct or rents thereunder, except to the extent that provision is made for:

      (A) Liens on real property in Code Sections 11-9-203 and 11-9-308;

      (B) Fixtures in Code Section 11-9-334;

      (C) Fixture filings in Code Sections 11-9-501, 11-9-502, 11-9-512, 11-9-516, and 11-9-519; and

      (D) Security agreements covering personal and real property in Code Section 11-9-604;

   (12) An assignment of a claim arising in tort, other than a commercial tort claim, but Code Sections 11-9-315 and 11-9-322 apply with respect to proceeds and priorities in proceeds;

   (13) An assignment of a deposit account in a consumer transaction, but Code Sections 11-9-315 and 11-9-322 apply with respect to proceeds and priorities in proceeds;

   (14) An assignment of a lottery prize payable by this state or any instrumentality of this state;

   (15) An assignment of a claim or right to receive payment as described in and to the extent limited by the provisions of Code Section 34-9-84 or by Article 4 of Chapter 12 of Title 51; or

   (16) A security interest created by or affecting property of this state or any governmental unit of this state in any public finance transaction, other than a security interest created by:

      (A) An authority activated under Chapter 62 of Title 36, the "Development Authorities Law"; or

      (B) A local authority having as its principal function the stimulation of industrial growth and the reduction of unemployment.

Code 1981, § 11-9-109, enacted by Ga. L. 2001, p. 362, § 1.