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

This Article applies to a transaction to the extent that it is governed by another Article of this chapter . 2007 Acts, ch 41, §2, 57

1. This chapter must be liberally construed and applied to promote its underlying purposes and policies, which are: a. to simplify, clarify, and modernize the law governing commercial transactions; b. to permit the continued expansion of commercial practices through custom, usage…

This chapter being a general Act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided. [C66, 71, 73, 75, 77, 79, 81, §554.1104 ] 2007 Acts, ch 41, §4

If any provision or clause of this chapter or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of this chapter which can be given effect without the invalid provision or application, and to this end the…

In this chapter , unless the statutory context otherwise requires: 1. words in the singular number include the plural, and those in the plural include the singular; and 2. words of any gender also refer to any other gender. 2007 Acts, ch 41, §7, 57

Section captions are parts of this chapter . [C66, 71, 73, 75, 77, 79, 81, §554.1109 ] 2007 Acts, ch 41, §49 CS2007, §554.1107 Referred to in §3.3

This Article modifies, limits, and supersedes the federal Electronic Signatures in Global and National Commerce Act, 15 U.S.C. §7001 et seq., except that nothing in this Article modifies, limits, or supersedes §7001(c) of that Act or authorizes electronic delivery of any of the n…

The secretary of state shall make and promulgate rules for all filing and indexing pursuant to this chapter and chapter 554B including but not limited to rules on whether statements and documents shall be indexed in real estate records. [C71, 73, 75, 77, 79, 81, §554.1110 ] 2014 …

Division 2 of 1974 Iowa Acts, ch. 1249, §9 to 72 , the Iowa amendments to the Uniform Commercial Code pertaining primarily to security interests, and related amendments, shall become effective at 12:01 a.m. on January 1, 1975. [C75, 77, 79, 81, §554.11101 ] 2009 Acts, ch 41, §163…

The provisions of Article 10 of this chapter , sections 554.10101 , 554.10103 , and 554.10105 , shall continue to apply to this chapter as amended and for this purpose this chapter prior to amendment and this chapter as amended shall be considered one continuous statute. [C75, 77…

Transactions validly entered into after July 4, 1966, and before January 1, 1975, which were subject to the provisions of this chapter prior to amendment and which would be subject to this chapter as amended if they had been entered into on or after January 1, 1975, and the right…

A security interest for the perfection of which filing or the taking of possession was required under this chapter prior to amendment and which attached prior to January 1, 1975, but was not perfected shall be deemed perfected on January 1, 1975, if this chapter as amended permit…

Except as otherwise provided in this Article , this chapter prior to amendment shall apply to any questions of priority if the positions of the parties were fixed prior to January 1, 1975. In other cases questions of priority shall be determined by this chapter as amended. [C75, …

Unless a change in law has clearly been made, the provisions of this chapter as amended shall be deemed declaratory of the meaning of this chapter prior to amendment. [C75, 77, 79, 81, §554.11108 ] 2000 Acts, ch 1149, §155, 187

To the extent that they are consistent with the Iowa statutory text, the 1972 Official Comments to the 1972 Official Text of the Uniform Commercial Code are evidence of legislative intent as to the meaning of this chapter as amended by 1974 Iowa Acts, ch.1249 . However, prior dra…

1. Unless the context otherwise requires, words or phrases defined in this section , or in the additional definitions contained in other Articles of this chapter that apply to particular Articles or parts thereof, have the meanings stated. 2. Subject to definitions contained in o…

1. Subject to subsection 6 , a person has “notice” of a fact if the person: a. has actual knowledge of it; b. has received a notice or notification of it; or c. from all the facts and circumstances known to the person at the time in question, has reason to know that it exists. 2.…

1. Whether a transaction in the form of a lease creates a lease or security interest is determined by the facts of each case. 2. A transaction in the form of a lease creates a security interest if the consideration that the lessee is to pay the lessor for the right to possession …

Except as otherwise provided in Articles 3 , 4 , 5 , and 14 , a person gives value for rights if the person acquires them: 1. in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a c…

1. Whether a time for taking an action required by this chapter is reasonable depends on the nature, purpose, and circumstances of the action. 2. An action is taken seasonably if it is taken at or within the time agreed or, if no time is agreed, at or within a reasonable time. [S…

Whenever this chapter creates a “presumption” with respect to a fact, or provides that a fact is “presumed” , the trier of fact must find the existence of the fact unless and until evidence is introduced that supports a finding of its nonexistence. 2007 Acts, ch 41, §18, 57

This Article shall be known and may be cited as Uniform Commercial Code — Funds Transfers. 92 Acts, ch 1146, §1

Except as otherwise provided in section 554.12108 , this Article applies to funds transfers defined in section 554.12104 . 92 Acts, ch 1146, §2

1. In this Article : a. “Payment order” means an instruction of a sender to a receiving bank, transmitted orally or in a record, to pay, or to cause another bank to pay, a fixed or determinable amount of money to a beneficiary if: (1) The instruction does not state a condition to…

In this Article unless the context otherwise requires: 1. “Funds transfer” means the series of transactions, beginning with the originator’s payment order, made for the purpose of making payment to the beneficiary of the order. The term includes any payment order issued by the or…

1. In this Article unless the context otherwise requires: a. “Authorized account” means a deposit account of a customer in a bank designated by the customer as a source of payment of payment orders issued by the customer to the bank. If a customer does not so designate an account…

1. The time of receipt of a payment order or communication canceling or amending a payment order is determined by the rules applicable to receipt of a notice stated in section 554.1202 . A receiving bank may establish a cut-off time or times on a funds-transfer business day for t…

Regulations of the board of governors of the federal reserve system and operating circulars of the federal reserve banks as of July 1, 1991, supersede any inconsistent provision of this Article to the extent of the inconsistency. 92 Acts, ch 1146, §7 ; 2022 Acts, ch 1032, §96

1. Except as provided in subsection 2 , this Article does not apply to a funds transfer any part of which is governed by the Electronic Fund Transfer Act of 1978 , 15 U.S.C. §1693 et seq. 2. This Article applies to a funds transfer that is a remittance transfer as defined in the …

“Security procedure” means a procedure established by agreement between a customer and a receiving bank for the purpose of verifying that a payment order or communication amending or canceling a payment order is that of the customer, or detecting error in the transmission or the …

1. A payment order received by the receiving bank is the authorized order of the person identified as sender if that person authorized the order or is otherwise bound by it under the law of agency. 2. If a bank and its customer have agreed that the authenticity of payment orders …

1. If an accepted payment order is not, under section 554.12202, subsection 1 , an authorized order of a customer identified as sender, but is effective as an order of the customer pursuant to section 554.12202, subsection 2 , the following rules apply: a. By express agreement, e…

1. If a receiving bank accepts a payment order issued in the name of its customer as sender which is not authorized and not effective as the order of the customer under section 554.12202 , or which is not enforceable, in whole or in part, against the customer under section 554.12…

1. If an accepted payment order was transmitted pursuant to a security procedure for the detection of error and the payment order (i) erroneously instructed payment to a beneficiary not intended by the sender, (ii) erroneously instructed payment in an amount greater than the amou…

1. If a payment order addressed to a receiving bank is transmitted to a funds-transfer system or other third-party communication system for transmittal to the bank, the system is deemed to be an agent of the sender for the purpose of transmitting the payment order to the bank. If…

1. Subject to subsection 2 , if, in a payment order received by the beneficiary’s bank, the name, bank account number, or other identification of the beneficiary refers to a nonexistent or unidentifiable person or account, no person has rights as a beneficiary of the order and ac…

1. This subsection applies to a payment order identifying an intermediary bank or the beneficiary’s bank only by an identifying number. a. The receiving bank may rely on the number as the proper identification of the intermediary or beneficiary’s bank and need not determine wheth…

1. Subject to subsection 4 , a receiving bank other than the beneficiary’s bank accepts a payment order when it executes the order. 2. Subject to subsections 3 and 4 , a beneficiary’s bank accepts a payment order at the earliest of the following times: a. When the bank pays the b…

1. A payment order is rejected by the receiving bank by a notice of rejection transmitted to the sender orally or in a record. A notice of rejection need not use any particular words and is sufficient if the notice indicates that the receiving bank is rejecting the order or will …

1. A communication of the sender of a payment order canceling or amending the order may be transmitted to the receiving bank orally or in a record. If a security procedure is in effect between the sender and the receiving bank, the communication is not effective to cancel or amen…

If a receiving bank fails to accept a payment order that it is obligated by express agreement to accept, the bank is liable for breach of the agreement to the extent provided in the agreement or in this Article , but does not otherwise have any duty to accept a payment order or, …

1. A payment order is executed by the receiving bank when the receiving bank issues a payment order intended to carry out the payment order received by the bank. A payment order received by the beneficiary’s bank can be accepted but cannot be executed. 2. “Execution date” of a pa…

1. Except as provided in subsections 2 through 4 , if the receiving bank accepts a payment order pursuant to section 554.12209, subsection 1 , the bank has the following obligations in executing the order: a. The receiving bank is obligated to issue, on the execution date, a paym…

1. A receiving bank that executes the payment order of the sender by issuing a payment order in an amount greater than the amount of the sender’s order, or that issues a payment order in execution of the sender’s order and then issues a duplicate order, is entitled to payment of …

If the sender of a payment order that is erroneously executed as stated in section 554.12303 receives notification from the receiving bank that the order was executed or that the sender’s account was debited with respect to the order, the sender has a duty to exercise ordinary ca…

1. If a funds transfer is completed, but execution of a payment order by the receiving bank in breach of section 554.12302 results in delay in payment to the beneficiary, the bank is obligated to pay interest to either the originator or the beneficiary of the funds transfer for t…