Title XIII, COMMERCE (Ch. 505 - 554I)

1. Sufficiency of description. Except as otherwise provided in subsections 3, 4, and 5 , a description of personal or real property is sufficient, whether or not it is specific, if it reasonably identifies what is described. 2. Examples of reasonable identification. Except as oth…

1. General scope of Article. Except as otherwise provided in subsections 3 and 4 , this Article applies to: a. a transaction, regardless of its form, that creates a security interest in personal property or fixtures by contract; b. an agricultural lien; c. a sale of accounts, cha…

Security interests arising under Article 2 or 13 . A security interest arising under section 554.2401 , 554.2505 , 554.2711, subsection 3 , or section 554.13508, subsection 5 , is subject to this Article . However, until the debtor obtains possession of the goods: 1. the security…

1. General effectiveness. Except as otherwise provided in this chapter , a security agreement is effective according to its terms between the parties, against purchasers of the collateral, and against creditors. 2. Applicable consumer laws. A transaction subject to this Article i…

Except as otherwise provided with respect to consignments or sales of accounts, chattel paper, payment intangibles, or promissory notes, the provisions of this Article with regard to rights and obligations apply whether title to collateral is in the secured party or the debtor. 2…

1. Attachment. A security interest attaches to collateral when it becomes enforceable against the debtor with respect to the collateral, unless an agreement expressly postpones the time of attachment. 2. Enforceability. Except as otherwise provided in subsections 3 through 9 , a …

1. After-acquired collateral. Except as otherwise provided in subsection 2 , a security agreement may create or provide for a security interest in after-acquired collateral. 2. When after-acquired property clause not effective. Subject to subsection 4 , a security interest does n…

1. When security interest not invalid or fraudulent. A security interest is not invalid or fraudulent against creditors solely because: a. the debtor has the right or ability to: (1) use, commingle, or dispose of all or part of the collateral, including returned or repossessed go…

1. Security interest when person buys through securities intermediary. A security interest in favor of a securities intermediary attaches to a person’s security entitlement if: a. the person buys a financial asset through the securities intermediary in a transaction in which the …

1. Duty of care when secured party in possession. Except as otherwise provided in subsection 4 , a secured party shall use reasonable care in the custody and preservation of collateral in the secured party’s possession. In the case of chattel paper or an instrument, reasonable ca…

1. Applicability of section. This section applies to cases in which there is no outstanding secured obligation and the secured party is not committed to make advances, incur obligations, or otherwise give value. 2. Duties of secured party after receiving demand from debtor. Withi…

1. Applicability of section. Except as otherwise provided in subsection 3 , this section applies if: a. there is no outstanding secured obligation; and b. the secured party is not committed to make advances, incur obligations, or otherwise give value. 2. Duties of secured party a…

1. Definitions. In this section : a. “Request” means a record of a type described in paragraph “b” , “c” , or “d” . b. “Request for an accounting” means a record signed by a debtor requesting that the recipient provide an accounting of the unpaid obligations secured by collateral…

Except as otherwise provided in sections 554.9303 through 554.9306B , the following rules determine the law governing perfection, the effect of perfection or nonperfection, and the priority of a security interest in collateral: 1. Except as otherwise provided in this section , wh…

While farm products are located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of an agricultural lien on the farm products. 2000 Acts, ch 1149, §22, 185, 187 Referred to in §554.1301 , 579A.2 …

1. Applicability of section. This section applies to goods covered by a certificate of title, even if there is no other relationship between the jurisdiction under whose certificate of title the goods are covered and the goods or the debtor. 2. When goods covered by certificate o…

1. Law of bank’s jurisdiction governs. The local law of a bank’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a deposit account maintained with that bank even if the transaction does not bear any relation t…

1. Governing law — general rules. Except as otherwise provided in subsection 3 , the following rules apply: a. While a security certificate is located in a jurisdiction, the local law of that jurisdiction governs perfection, the effect of perfection or nonperfection, and the prio…

1. Governing law — issuer’s or nominated person’s jurisdiction. Subject to subsection 3 , the local law of the issuer’s jurisdiction or a nominated person’s jurisdiction governs perfection, the effect of perfection or nonperfection, and the priority of a security interest in a le…

1. Chattel paper evidenced by authoritative electronic copy. Except as provided in subsection 4 , if chattel paper is evidenced only by an authoritative electronic copy of the chattel paper or is evidenced by an authoritative electronic copy and an authoritative tangible copy, th…

1. Governing law: general rules. Except as provided in subsection 2 , the local law of the controllable electronic record’s jurisdiction specified in section 554.14107, subsections 3 and 4 governs perfection, the effect of perfection or nonperfection, and the priority of a securi…

1. Place of business. In this section , “place of business” means a place where a debtor conducts its affairs. 2. Debtor’s location — general rules. Except as otherwise provided in this section , the following rules determine a debtor’s location: a. A debtor who is an individual …

1. Perfection of security interest. Except as otherwise provided in this section and section 554.9309 , a security interest is perfected if it has attached and all of the applicable requirements for perfection in sections 554.9310 , 554.9311 , 554.9312 , 554.9313 , 554.9314 , 554…

The following security interests are perfected when they attach: 1. a purchase-money security interest in consumer goods, except as otherwise provided in section 554.9311, subsection 2 , with respect to consumer goods that are subject to a statute or treaty described in section 5…

1. General rule — perfection by filing. Except as otherwise provided in subsection 2 and section 554.9312, subsection 2 , a financing statement must be filed to perfect all security interests and agricultural liens. 2. Exceptions — filing not necessary. The filing of a financing …

1. Security interest subject to other law. Except as otherwise provided in subsection 4 , the filing of a financing statement is not necessary or effective to perfect a security interest in property subject to: a. a statute, regulation, or treaty of the United States whose requir…

1. Perfection by filing permitted. A security interest in chattel paper, controllable accounts, controllable electronic records, controllable payment intangibles, instruments, investment property, or negotiable documents may be perfected by filing. 2. Control or possession of cer…

1. Perfection by possession or delivery. Except as otherwise provided in subsection 2 , a secured party may perfect a security interest in goods, instruments, negotiable tangible documents, or tangible money by taking possession of the collateral. A secured party may perfect a se…

1. Perfection by control. A security interest in controllable accounts, controllable electronic records, controllable payment intangibles, deposit accounts, electronic documents, electronic money, investment property, or letter-of-credit rights may be perfected by control of the …

1. Perfection by possession and control. A secured party may perfect a security interest in chattel paper by taking possession of each authoritative tangible copy of the record evidencing the chattel paper and obtaining control of each authoritative electronic copy of the electro…

1. Disposition of collateral — continuation of security interest or agricultural lien — proceeds. Except as otherwise provided in this Article and in section 554.2403, subsection 2 : a. a security interest or agricultural lien continues in collateral notwithstanding sale, lease, …

1. General rule — effect on perfection of change in governing law. A security interest perfected pursuant to the law of the jurisdiction designated in section 554.9301, subsection 1 , section 554.9305, subsection 3 , section 554.9306A, subsection 4 , or section 554.9306B, subsect…

1. Conflicting security interests and rights of lien creditors. A security interest or agricultural lien is subordinate to the rights of: a. a person entitled to priority under section 554.9322 ; and b. except as otherwise provided in subsection 5 , a person that becomes a lien c…

1. Seller retains no interest. A debtor that has sold an account, chattel paper, payment intangible, or promissory note does not retain a legal or equitable interest in the collateral sold. 2. Deemed rights of debtor if buyer’s security interest unperfected. For purposes of deter…

1. Consignee has consignor’s rights. Except as otherwise provided in subsection 2 , for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have…

1. Buyer in ordinary course of business. Except as otherwise provided in subsection 5 , a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer’s seller, e…

1. Licensee in ordinary course of business. In this section , “licensee in ordinary course of business” means a person that becomes a licensee of a general intangible in good faith, without knowledge that the license violates the rights of another person in the general intangible…

1. General priority rules. Except as otherwise provided in this section , priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules: a. Conflicting perfected security interests and agricultural liens…

1. When priority based on time of advance. Except as otherwise provided in subsection 3 , for purposes of determining the priority of a perfected security interest under section 554.9322, subsection 1 , paragraph “a” , perfection of the security interest dates from the time an ad…

1. General rule — purchase-money priority. Except as otherwise provided in subsection 7 , a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided…

1. Subordination of security interest in transferred collateral. Except as otherwise provided in subsection 2 , a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if: a. the debtor acquired the collateral…

1. Subordination of security interest created by new debtor. Subject to subsection 2 , a security interest that is created by a new debtor in collateral in which the new debtor has or acquires rights and is perfected solely by a filed financing statement that would be ineffective…

A security interest in a controllable account, controllable electronic record, or controllable payment intangible held by a secured party having control of the account, electronic record, or payment intangible has priority over a conflicting security interest held by a secured pa…

The following rules govern priority among conflicting security interests in the same deposit account: 1. A security interest held by a secured party having control of the deposit account under section 554.9104 has priority over a conflicting security interest held by a secured pa…

The following rules govern priority among conflicting security interests in the same investment property: 1. A security interest held by a secured party having control of investment property under section 554.9106 has priority over a security interest held by a secured party that…

The following rules govern priority among conflicting security interests in the same letter-of-credit right: 1. A security interest held by a secured party having control of the letter-of-credit right under section 554.9107 has priority to the extent of its control over a conflic…