Effects of consignment

A consignment of a work of art shall result in all of the following: (1) The art dealer, after delivery of the work of art, shall constitute an agent of the artist for the purpose of sale or exhibition of the consigned work of art within this state; (2) The work of art shall constitute property held in trust by the consignee for the benefit of the consignor and shall not be subject to claim by a creditor of the consignee; (3) The consignee shall be responsible for the loss of, or damage to, the work of art; and (4) The proceeds from the sale of the work of art shall constitute funds held in trust by the consignee for the benefit of the consignor. Such proceeds shall first be applied to pay any balance due to the consignor, unless the consignor expressly agrees otherwise in writing. History. Code 1981, § 10-1-524, enacted by Ga. L. 1995, p. 267, § 1. 10-1-525. Art received as consignment to remain trust property; not subject or subordinate to claims, liens, or security interests. (a) A work of art received as a consignment shall remain trust property, notwithstanding the subsequent purchase thereof by the consignee directly or indirectly for the consignee’s own account, until the price is paid in full to the consignor. If such work is thereafter resold to a bona fide purchaser before the consignor has been paid in full, the proceeds of the resale received by the consignee shall constitute funds held in trust for the benefit of the consignor to the extent necessary to pay any balance still due to the consignor and such trusteeship shall continue until the fiduciary obligation of the consignee with respect to such transaction is discharged in full. (b) No such trust property or trust funds shall be or become subject or subordinate to any claims, liens, or security interests of any kind or nature whatsoever of the consignee’s creditors, anything in Code Section 11-2-326 or any other provision of Title 11 to the contrary notwithstanding. 401 History. Code 1981, § 10-1-525, enacted by Ga. L. 1995, p. 267, § 1.