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Current as of January 01, 2024 | Updated by FindLaw Staff
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, chattel paper, payment intangibles, or promissory notes;
d. a consignment;
e. a security interest arising under section 554.2401, 554.2505, 554.2711, subsection 3, or section 554.13508, subsection 5, as provided in section 554.9110; and
f. a security interest arising under section 554.4210 or 554.5118.
2. Security interest in secured obligation. The application of this Article to a security interest in a secured obligation is not affected by the fact that the obligation is itself secured by a transaction or interest to which this Article does not apply.
3. Extent to which Article does not apply. This Article does not apply to the extent that:
a. a statute, regulation, or treaty of the United States preempts this Article;
b. another statute of this state expressly governs the creation, perfection, priority, or enforcement of a security interest created by this state or a governmental unit of this state;
c. a statute of another state, a foreign country, or a governmental unit of another state or a foreign country, other than a statute generally applicable to security interests, expressly governs creation, perfection, priority, or enforcement of a security interest created by the state, country, or governmental unit; or
d. the rights of a transferee beneficiary or nominated person under a letter of credit are independent and superior under section 554.5114.
4. Inapplicability of Article. This Article does not apply to:
a. a landlord's lien, other than an agricultural lien;
b. a lien, other than an agricultural lien, given by statute or other rule of law for services or materials, but section 554.9333 applies with respect to priority of the lien;
c. an assignment of a claim for wages, salary, or other compensation of an employee;
d. a sale of accounts, chattel paper, payment intangibles, or promissory notes as part of a sale of the business out of which they arose;
e. an assignment of accounts, chattel paper, payment intangibles, or promissory notes which is for the purpose of collection only;
f. an assignment of a right to payment under a contract to an assignee that is also obligated to perform under the contract;
g. an assignment of a single account, payment intangible, or promissory note to an assignee in full or partial satisfaction of a preexisting indebtedness;
h. a transfer of an interest in or an assignment of a claim under a policy of insurance, other than an assignment by or to a health care provider of a health care insurance receivable and any subsequent assignment of the right to payment, but sections 554.9315 and 554.9322 apply with respect to proceeds and priorities in proceeds;
i. an assignment of a right represented by a judgment, other than a judgment taken on a right to payment that was collateral;
j. a right of recoupment or setoff, but:
(1) section 554.9340 applies with respect to the effectiveness of rights of recoupment or setoff against deposit accounts; and
(2) section 554.9404 applies with respect to defenses or claims of an account debtor;
k. the creation or transfer of an interest in or lien on real property, including a lease or rents thereunder, except to the extent that provision is made for:
(1) liens on real property in sections 554.9203 and 554.9308;
(2) fixtures in section 554.9334;
(3) fixture filings in sections 554.9501, 554.9502, 554.9512, 554.9516, and 554.9519; and
(4) security agreements covering personal and real property in section 554.9604;
l. an assignment of a claim arising in tort, other than a commercial tort claim, but sections 554.9315 and 554.9322 apply with respect to proceeds and priorities in proceeds;
m. an assignment of a deposit account in a consumer transaction, but sections 554.9315 and 554.9322 apply with respect to proceeds and priorities in proceeds;
n. a transfer, other than a transfer pursuant to chapter 419, by this state or a governmental unit within this state in connection with a public-finance transaction or a transaction that would be a public-finance transaction but for failure to meet the criterion set forth in section 554.9102, subsection 1, paragraph “bo”, subparagraph (2); or
o. an assignment of a claim or right to receive any of the following:
(1) compensation for injuries or sickness as provided in 26 U.S.C. § 104(a)(1) or (2).
(2) benefits under a special needs trust as provided in 42 U.S.C. § 1396p(d)(4).
Cite this article: FindLaw.com - Iowa Code Title XIII. Commerce [Chs. 505-554D] § 554.9109. Scope - last updated January 01, 2024 | https://codes.findlaw.com/ia/title-xiii-commerce-chs-505-554d/ia-code-sect-554-9109/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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