§ 53-7-7 - (Pre-1998 Probate Code) Right to borrow money and bind estate; petition; publication of notice; objections; hearing and order; effect of order; appeal - Georgia Statutes

O.C.G.A. 53-7-7 (2010)
53-7-7. (Pre-1998 Probate Code) Right to borrow money and bind estate; petition; publication of notice; objections; hearing and order; effect of order; appeal

(a) An executor or administrator, by virtue of his appointment, shall have the legal right to borrow money and to bind the estate by the execution of a promissory note therefor and shall have the right to pledge any or all property of the estate for the payment of same by mortgage, trust deed, deed to secure debt, or other security instrument, for the purpose of paying any gift, estate, inheritance, income, sales, or ad valorem taxes due the United States, the state, or any municipality or county thereof which constitute a claim or demand against the estate.

(b) An executor or administrator desiring to borrow money shall petition the judge of the probate court, setting forth the facts, and shall specify in his petition the amount of money to be borrowed, the purpose for which the same shall be used, the rate of interest to be paid, the property to be pledged as security, and the period of time over which the money is to be repaid. Notice of the petition shall be published once a week for four weeks before the hearing in the newspaper in which the sheriff's advertisements are published. Any interested persons may file objections thereto. After a hearing, if the judge is satisfied of the truth of the allegations in the petition and deems it in the best interest of the estate, an order shall be passed granting leave to borrow money and encumber the estate or any part thereof, specifying the portion of the estate to be bound as definitely as possible. The order by the judge granting permission to an executor or administrator to borrow shall be binding, final, and conclusive as to all devisees, legatees, or heirs and to all creditors of the estate, regardless of any prior assent of the executor or administrator; provided, however, that nothing in this Code section shall prevent any party at interest from entering an appeal from the order within the time provided by law; and provided further that nothing in this Code section shall limit the powers contained in the will of a decedent.