Iowa Code 554.9407 – Restrictions on creation or enforcement of security interest in leasehold interest or in lessor’s residual interest
Except as otherwise provided in subsection 2, a term in a lease agreement is ineffective to the extent that it:
Terms Used In Iowa Code 554.9407
- Attachment: A procedure by which a person's property is seized to pay judgments levied by the court.
- Contract: means the same as defined in section 554D. See Iowa Code 554E.1
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
Except as otherwise provided in section 554.13303, subsection 7, a term described in subsection 1, paragraph “b”, is effective to the extent that there is:
The creation, attachment, perfection, or enforcement of a security interest in the lessor’s interest under the lease contract or the lessor’s residual interest in the goods is not a transfer that materially impairs the lessee’s prospect of obtaining return performance or materially changes the duty of or materially increases the burden or risk imposed on the lessee within the purview of section 554.13303, subsection 3, unless, and then only to the extent that, enforcement actually results in a delegation of material performance of the lessor.