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

1. In general: no duty owed by a secured party. Except as provided in subsection 2 , a secured party does not owe a duty based on its status as secured party: a. to a person that is a debtor or obligor, unless the secured party knows: (1) that the person is a debtor or obligor; (…

For purposes of this part, a default occurs in connection with an agricultural lien at the time the secured party becomes entitled to enforce the lien in accordance with the statute under which it was created. 2000 Acts, ch 1149, §104, 187

1. Collection and enforcement generally. If so agreed, and in any event after default, a secured party: a. may notify an account debtor or other person obligated on collateral to make payment or otherwise render performance to or for the benefit of the secured party; b. may take …

1. Application of proceeds, surplus, and deficiency if obligation secured. If a security interest or agricultural lien secures payment or performance of an obligation, the following rules apply: a. a secured party shall apply or pay over for application the cash proceeds of colle…

1. Possession — rendering equipment unusable — disposition on debtor’s premises. After default, a secured party: a. may take possession of the collateral; and b. without removal, may render equipment unusable and dispose of collateral on a debtor’s premises under section 554.9610…

1. Disposition after default. After default, a secured party may sell, lease, license, or otherwise dispose of any or all of the collateral in its present condition or following any commercially reasonable preparation or processing. 2. Commercially reasonable disposition. Every a…

1. Notification date. In this section , “notification date” means the earlier of the dates on which: a. a secured party sends to the debtor and any secondary obligor a signed notification of disposition; or b. the debtor and any secondary obligor waive the right to notification. …

1. Reasonable time is question of fact. Except as otherwise provided in subsection 2 , whether a notification is sent within a reasonable time is a question of fact. 2. Ten-day period sufficient in nonconsumer transaction. In a transaction other than a consumer transaction, a not…

1. Contents and form of notification. Except in a consumer-goods transaction, the following rules apply: a. The contents of a notification of disposition are sufficient if the notification: (1) describes the debtor and the secured party; (2) describes the collateral that is the s…

1. Contents and form of notification. In a consumer-goods transaction, the following rules apply: a. A notification of disposition must provide the following information: (1) the information specified in section 554.9613, subsection 1 , paragraph “a” ; (2) a description of any li…

1. Application of proceeds. A secured party shall apply or pay over for application the cash proceeds of disposition under section 554.9610 in the following order to: a. the reasonable expenses of retaking, holding, preparing for disposition, processing, and disposing, and, to th…

1. Definitions. In this section : a. “Explanation” means a record that: (1) states the amount of the surplus or deficiency; (2) provides an explanation in accordance with subsection 3 of how the secured party calculated the surplus or deficiency; (3) states, if applicable, that f…

1. Effects of disposition. A secured party’s disposition of collateral after default: a. transfers to a transferee for value all of the debtor’s rights in the collateral; b. discharges the security interest under which the disposition is made; and c. discharges any subordinate se…

1. Rights and duties of secondary obligor. A secondary obligor acquires the rights and becomes obligated to perform the duties of the secured party after the secondary obligor: a. receives an assignment of a secured obligation from the secured party; b. receives a transfer of col…

1. Transfer statement. In this section , “transfer statement” means a record signed by a secured party stating: a. that the debtor has defaulted in connection with an obligation secured by specified collateral; b. that the secured party has exercised its post-default remedies wit…

1. Conditions to acceptance in satisfaction. Except as otherwise provided in subsection 7 , a secured party may accept collateral in full or partial satisfaction of the obligation it secures only if: a. the debtor consents to the acceptance under subsection 3 ; b. the secured par…

1. Persons to which proposal to be sent. A secured party that desires to accept collateral in full or partial satisfaction of the obligation it secures shall send its proposal to: a. any person from which the secured party has received, before the debtor consented to the acceptan…

1. Effect of acceptance. A secured party’s acceptance of collateral in full or partial satisfaction of the obligation it secures: a. discharges the obligation to the extent consented to by the debtor; b. transfers to the secured party all of a debtor’s rights in the collateral; c…

1. Persons that may redeem. A debtor, any secondary obligor, or any other secured party or lienholder may redeem collateral. 2. Requirements for redemption. To redeem collateral, a person shall tender: a. fulfillment of all obligations secured by the collateral; and b. the reason…

1. Waiver of disposition notification. A debtor or secondary obligor may waive the right to notification of disposition of collateral under section 554.9611 only by an agreement to that effect entered into and signed after default. 2. Waiver of mandatory disposition. A debtor may…

1. Judicial orders concerning noncompliance. If it is established that a secured party is not proceeding in accordance with this Article , a court may order or restrain collection, enforcement, or disposition of collateral on appropriate terms and conditions. 2. Damages for nonco…

1. Applicable rules if amount of deficiency or surplus in issue. In an action arising from a transaction, other than a consumer transaction, in which the amount of a deficiency or surplus is in issue, the following rules apply: a. a secured party need not prove compliance with th…

1. Greater amount obtainable under other circumstances — no preclusion of commercial reasonableness. The fact that a greater amount could have been obtained by a collection, enforcement, disposition, or acceptance at a different time or in a different method from that selected by…

1. Limitation of liability of secured party for noncompliance with article. Subject to subsection 6 , unless a secured party knows that a person is a debtor or obligor, knows the identity of the person, and knows how to communicate with the person: a. the secured party is not lia…