Iowa Code 537.5111 – Notice of right to cure
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1. The notice of right to cure shall be in writing and shall conspicuously state the name, address, and telephone number of the creditor to which payment is to be made, a brief identification of the credit transaction and of the consumer‘s right to cure the default, a statement of the nature of the right to cure the default, a statement of the nature of the alleged default, a statement of the total payment, including an itemization of any delinquency or deferral charges, or other performance necessary to cure the alleged default, and the exact date by which the amount must be paid or performance tendered.
Terms Used In Iowa Code 537.5111
- Account: means the same as defined in section 554. See Iowa Code 554E.1
- Agreement: means the oral or written bargain of the parties in fact as found in their language or by implication from other circumstances including course of dealing or usage of trade or course of performance. See Iowa Code 537.1301
- Consumer: means the buyer, lessee, or debtor to whom credit is granted in a consumer credit transaction. See Iowa Code 537.1301
- Consumer credit transaction: means a consumer credit sale or consumer loan, or a refinancing or consolidation thereof, or a consumer lease, or a consumer rental purchase agreement. See Iowa Code 537.1301
- Contract: means the same as defined in section 554D. See Iowa Code 554E.1
- Contract: A legal written agreement that becomes binding when signed.
- Credit: means the right granted by a person extending credit to a person to defer payment of debt, to incur debt and defer its payment, or to purchase property or services and defer payment therefor. See Iowa Code 537.1301
- Credit card: means a card or device issued under an arrangement pursuant to which a card issuer gives a cardholder the privilege of purchasing or leasing property or purchasing services, obtaining loans, or otherwise obtaining credit from the card issuer or other persons. See Iowa Code 537.1301
- Creditor: means the person who grants credit in a consumer credit transaction or, except as otherwise provided, an assignee of a creditor's right to payment, but use of the term does not in itself impose on an assignee any obligation of the assignee's assignor. See Iowa Code 537.1301
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- Insurance premium loan: means a consumer loan that is made for the sole purpose of financing the payment by or on behalf of an insured of the premium on one or more policies or contracts issued by or on behalf of an insurer, is secured by an assignment by the insured to the lender of the unearned premium on the policy or contract, and contains an authorization to cancel the policy or contract financed. See Iowa Code 537.1301
- Loan: means any of the following, except as provided in paragraph "b":(1) The creation of debt by the lender's payment of or agreement to pay money to the debtor or to a third person for the account of the debtor. See Iowa Code 537.1301
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- Transaction: means a sale, trade, exchange, transfer, payment, or conversion of a digital asset or any other property or any other action or set of actions occurring between two or more persons relating to the conduct of business, commercial, or governmental affairs. See Iowa Code 554E.1
- year: means twelve consecutive months. See Iowa Code 4.1
2. Except as provided in subsection 4, a notice in substantially the following form complies with this section:……………………………………………………………………..(name, address, and telephone number of creditor) ……………………………………………………………………..(account number, if any) ……………………………………………………………………..(brief identification of credit transaction) You are now in default on this credit transaction. You have a right to correct this default until ………… (date). If you do so, you may continue with the contract as though you did not default. Your default consists of ……………………………………………………………………..(describe default alleged) Correction of the default: Before …………, (date) ……………………………………………………………………..(describe the acts necessary for cure) If you do not correct your default by the date stated above, we may exercise rights against you under the law. If you default again in the next year, we may exercise our rights without sending you another notice like this one. If you have questions, write or telephone promptly. ……………………………………………………………………..(the creditor)3. A creditor gives notice to the consumer under this part when the creditor delivers the notice to the consumer or mails the notice to the consumer at the consumer’s residence as defined in section 537.1201, subsection 4.4. If the consumer credit transaction is an insurance premium loan, the notice shall conform to the requirements of subsection 2, and a notice in substantially the form specified in that subsection complies with this subsection except for the following:a. In lieu of a brief identification of the credit transaction, the notice shall identify the transaction as an insurance premium loan and each insurance policy or contract that may be canceled.b. In lieu of the statement in the form of notice specified in subsection 2 that the creditor may exercise the creditor’s rights under the law, the statement that each policy or contract, identified in the notice may be canceled.c. The last paragraph of the form of notice specified in subsection 2 shall be omitted.5. If the consumer credit transaction is a credit card account that has been closed, the notice shall conform to the requirements of subsection 2, and a notice in substantially the form specified in that subsection complies with this subsection except that the statement relating to continuation of the contract upon correction of the default as though the consumer did not default shall not be contained in the notice.6. This section does not apply to a consumer rental purchase agreement, which is governed by section 537.3618.