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

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…

“Payment date” of a payment order means the day on which the amount of the order is payable to the beneficiary by the beneficiary’s bank. The payment date may be determined by instruction of the sender but cannot be earlier than the day the order is received by the beneficiary’s …

1. This section is subject to sections 554.12205 and 554.12207 . 2. With respect to a payment order issued to the beneficiary’s bank, acceptance of the order by the bank obligates the sender to pay the bank the amount of the order, but payment is not due until the payment date of…

1. Payment of the sender’s obligation under section 554.12402 to pay the receiving bank occurs as follows: a. If the sender is a bank, payment occurs when the receiving bank receives final settlement of the obligation through a federal reserve bank or through a funds-transfer sys…

1. Subject to sections 554.12211, subsection 5 , and 554.12405, subsections 4 and 5 , if a beneficiary’s bank accepts a payment order, the beneficiary bank shall pay the amount of the order to the beneficiary of the order. Payment is due on the payment date of the order, but if a…

1. If the beneficiary’s bank credits an account of the beneficiary of a payment order, payment of the beneficiary’s bank’s obligation under section 554.12404, subsection 1 , occurs when and to the extent the beneficiary is notified of the right to withdraw the credit, the bank la…

1. Subject to section 554.12211, subsection 5 , and section 554.12405, subsections 4 and 5 , the originator of a funds transfer pays the beneficiary of the originator’s payment order at the time a payment order for the benefit of the beneficiary is accepted by the beneficiary’s b…

1. Except as otherwise provided in this Article , the rights and obligations of a party to a funds transfer may be varied by agreement of the affected party. 2. “Funds-transfer system rule” means a rule of an association of banks governing transmission of payment orders by means …

1. As used in this section , “creditor process” means levy, attachment, garnishment, notice of lien, sequestration, or similar process issued by or on behalf of a creditor or other claimant with respect to an account. 2. This subsection applies to the creditor process with respec…

For proper cause and in compliance with applicable law, a court may restrain a person from issuing a payment order to initiate a funds transfer, an originator’s bank from executing the payment order of the originator, or the beneficiary’s bank from releasing funds to the benefici…

1. If a receiving bank has received more than one payment order of the sender or one or more payment orders and other items that are payable from the sender’s account, the bank may charge the sender’s account with respect to the various orders and items in any sequence. 2. In det…

If a receiving bank has received payment from the receiving bank’s customer with respect to a payment order issued in the name of the customer as sender and accepted by the receiving bank, and the customer received notification reasonably identifying the order, the customer is pr…

1. If, under this Article , a receiving bank is to pay interest with respect to a payment order issued to the bank, the amount payable may be determined by agreement of the sender and receiving bank, or by a funds-transfer system rule if the payment order is transmitted through a…

1. The following rules apply unless the affected parties otherwise agree or subsection 3 applies: a. The rights and obligations between the sender of a payment order and the receiving bank are governed by the law of the jurisdiction in which the receiving bank is located. b. The …